Insurance still lags in digital transformation - study

Insurance still lags in digital transformation - study | Insurance Business

Insurance still lags in digital transformation - study

Businesses are struggling to make progress with their digital transformation process – and insurance is playing catch-up with other industries, according to a new report.

New research from global consulting firm Capgemini has found that only a minority of businesses feel they have the digital and leadership capabilities to make digital transformation a success. Just 39% of businesses felt they had the digital capabilities necessary, and only 35% thought they had the requisite leadership capabilities.

Even with those unimpressive numbers, the insurance sector is lagging behind other industries, according to Capgemini. The insurance industry is behind the telecom, automotive and banking industries in both digital and leadership mastery, and at 56% had the highest percentage of beginners in digital mastery.

The report surveyed more than 1,300 business leaders across more than 750 organizations. It compared digital transformation progress against a similar report from 2012.

“The new research shows that despite huge investments in digital transformation initiatives, set to exceed $2 trillion by 2021, organizations today feel less equipped with the right capabilities than they were six years ago,” Capgemini said. In 2012, 45% of organizations surveyed felt equipped to handle digital transformation; that number has since dropped to 35%. Less than 40% of organizations felt they had the right digital capabilities to advance their transformations.

Businesses have made headway on customer experience in the digital realm, with 43% using mobile channels to sell products and services today, compared to just 23% in 2012. But only 36% of businesses surveyed said that they excelled in digital operations capabilities.

“For example, only 38% of organizations say that their employees can collaborate digitally with other employees and just 33% of organizations agree that digital technologies improve communication between senior executives and employees,” Capgemini said.

 

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