2017年-_HHKWI~E

Deloitte Forum Future of FSI Report Summary

Core Content

The Deloitte Forum Future of FSI Report Leaders is a comprehensive analysis of the future of financial services, with a specific focus on the insurance sector. The report highlights the transformative impact of disruptive innovation on the insurance industry and outlines key forces shaping its evolution.

Key Forces Impacting Financial Services

The report identifies 8 key forces that are reshaping the financial services industry:

1. Cost Commoditization: Financial institutions are accelerating the commoditization of their cost bases, reducing them as points of competition and creating new grounds for differentiation.
2. Experience Ownership: The power to engage with customers is shifting to those who own the customer interface. Traditional manufacturers must either scale hyper or focus hyper to remain relevant.
3. Data Monetization: Data is becoming a critical asset for differentiation. Static data sets are being enriched by real-time data flows from multiple sources.
4. Systemically Important Techs: Financial institutions are increasingly dependent on large tech firms for critical infrastructure and differentiating technologies.
5. Profit Redistribution: Technology and new partnerships are enabling organizations to bypass traditional value chains, thereby redistributing profit pools.
6. Platforms Rising: Platforms that allow customers to interact with multiple financial institutions through a single channel are becoming the dominant model for delivering financial services.
7. Bionic Workforce: As machines become more capable of replicating human behaviors, financial institutions must manage labor and capital as a unified set of capabilities.
8. Financial Regionalization: Diverging regulatory priorities and customer needs are leading financial services in different regions to develop distinct paths.

Insurance Trends

The report outlines several trends in the insurance sector:

• Increased Modularity in the Insurance Value Chain: This is enabling new combinations of players and challenging the position of traditional incumbents.
• Emergence of Usage-Based, On-Demand, and Item-Specific Insurance Products: These products are responding to changing customer lifestyles.
• Insurance of Emerging Risks: Products that cover emerging risks are becoming critical for carrier profitability, especially as margins in traditional products erode.
• Reinvention of Life Insurance Product Strategies: Life insurers are under pressure to adapt to the needs of the next generation of customers.

Open Questions and Possible Futures

The report raises several open questions and explores possible future scenarios for the insurance industry:

• How will changing sources and nature of liability affect insurance consumption?
• Possible Futures:
  • Changing the Channel: As customer purchasing habits evolve, insurers are emphasizing digital channels and integration at the point of sale. This will require significant changes in product design and marketing.
  • Underwriting by Machine: Insurers are struggling to keep up with rapid developments in AI. Outsourcing underwriting may lead to a market bifurcation, with new entrants facing challenges due to lack of scale.
  • Rise of the Flexible Product: The rise of insurance products that adapt to changes in behavior, role, and risk profile over time means insurers must figure out how to monitor these products effectively.
  • E-Z Life Insurance: Emerging markets are driving growth in life insurance. Digital distribution is key, and insurers that can offer it without compromising underwriting may capture market share and provide additional coverage.

Key Takeaways

• Value Chain Breakup: The insurance value chain is becoming more modular due to new technologies, allowing leading organizations to pursue flexible partnerships and compete for adjacent profit pools.
• Complex Products, Simply Distributed: Insurers must develop highly complex and personalized products while simplifying the origination process to enable direct sales through online and mobile channels.
• Connected Insurance: The shift towards connected insurance requires insurers to focus on risk prevention rather than just risk assessment. They must also collaborate with original equipment manufacturers and convince customers of the benefits of connected insurance over traditional models.

Conclusion

The report underscores the need for insurers to adapt to a rapidly changing landscape driven by technological innovation and evolving customer expectations. By embracing modularity, digital transformation, and flexible product strategies, insurers can remain competitive and better serve their customers in the future.