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Be digital—A R115.2 billion opportunity for South Africa’s short-term insurance industry

Overview

The short-term insurance sector in South Africa has been slow to go digital. An Accenture survey shows that the local market prefers, and is ready for, digital engagement. If local players can meet this need, they can increase their gross written premiums (GWP) by R115.2 billion by 2020.

To achieve this, they need to re-imagine their business services and solutions around the customer, embed digital into their systems and processes, and meet five digital imperatives that will help them address key customer challenges.

The five imperatives for a digital provider: Be accessible, trusted, responsive, relevant and smart.

The South Africa short-term insurance sector’s slow move to digital has curtailed its growth considerably. Remedying this presents a significant opportunity to maximise existing business through cross- and up-selling.

Accenture calculates the size of the opportunity at R115.2 billion by 2020. To test the market, Accenture surveyed 1,500 insurance customers across South Africa, gaining insight into their perceptions, behaviour and preferences in terms of digital offerings and insurance value propositions.

KEY FINDINGS

Short-term insurance providers must meet five strategic imperatives to meet changing customer demands and leverage new opportunities, and foster customer participation in a fully digitalised environment. These five imperatives are:

  1. Be accessible: Customers want to interact via multiple channels; insurers should build the capability to meet evolving preferences.

  2. Be trusted: Data management and ethics are core to building trust, which is essential to encourage digital engagement.

  3. Be responsive: Insurers should address key areas in which they are failing to meet customer expectations, such as efficiency of claims services.

  4. Be relevant: Insurers should aim for a 360-degree view of the customer to understanding their needs and personalise interactions.

  5. Be smart: Smart solutions such as telematics present significant advantages but will require building strong partnerships.

Insights

Accenture believes that the R115.2 billion gross written premium (GWP) opportunity is within reach for South Africa’s short-term insurance providers if they harness the power of digital technologies to re-conceptualise their business models around the customer and create unique customer experiences.

Download the survey report for deeper insight into how businesses can re-imagine services and solutions around the customer, and embed digital into their systems and processes.

DOWNLOAD THE SURVEY REPORT [PDF]

For more information please contact:
Jean Olivier
Insurance Lead
Accenture Financial Services