Advancing digital insuranceA survey on the digital maturity of the European insurance industry

White Paper

2

Introduction

Digitalization is changing the world fundamentally: customer expectations, business models, value chains — no element will remain unaffected. And while the speed of change is increasing in the insurance industry, a study jointly conducted by DXC Technology and IDC finds that the European industry remains digitally immature compared to others. For decades the industry has benefited from making underwriting models more accurate and optimizing back-office processes, but rapid changes now demand a strategic focus on customers and growth.

In their book, “Dream and Details — A Leadership Model: Reinvent Your Business and Your Leadership,” by Jim Hagemann Snabe and Mikael Trolle — whose experiences come from SAP and the Danish volleyball national team — relate how technology has disrupted and changed the game for technology companies and how it is now having an impact on other industries. The insurance industry is not immune. Consider how the arrival of ride-hailed self-driving cars might alter the demand for individually owned cars. The industry could be affected significantly, since 20 percent of industry revenue comes from auto insurance.

But we don’t have to wait for the future to observe technology-driven insurance industry changes. Advances that enable cars to avoid collisions have already resulted in a decrease in the number of claims, leading to the need for the industry to lower prices on the classic automotive risk product. The industry needs to reinvent the product. The time to act is now.

While the European insurance Industry in our surveyed countries can be defined as digitally immature, our survey reveals ongoing efforts to meet evolving customer demands, embrace new technologies and fight off incoming competitors that are founded on a digital business model. Our study reviews who is driving the digital agenda, the top priorities and expectations, what technologies companies are banking on, the role digital ecosystems will play in competition and even the outlook for the talent that will be required to see the agenda through.

With these short glimpses into our study, we invite you to explore and benefit from the results. We hope you will enjoy reading it.

White Paper

Table of contents

Introduction 2

The insurance industry remains digitally immature 3

Advancing digital insurance — IT’s changing role 4

Customer experience and optimization top the agenda 5 Agility is key 6

Ecosystems to expand lines of service 8

How to make insurance more personal, affordable and adaptable 9

“Culture eats strategy for breakfast” 10

The hunt for talent 11

Conclusion 12

About the survey 13

The insurance industry remains digitally immature

The insurance industry is increasingly adopting a digital agenda. However, DXC Technology’s recent survey, conducted with IDC, finds that only 36 percent of the 100 insurance respondents have implemented a digital strategy that addresses the new technologies and business processes required to succeed in the era of “digital insurance.” Fewer than half of those organizations have experienced a positive business outcome.

This implies that the insurance industry is digitally immature and faces a great journey ahead, a conclusion that corresponds with the results of a recent IDC study in Western Europe.1

For decades the industry has been looking for tools and methodologies to increase profitability, and it found great success with new underwriting models that make it possible to more accurately price risk and optimize back-office processes. However, rapid, ongoing changes now demand a strategic focus on customers and growth.

The survey finds there is a sense of urgency, but companies are still in the early stages of figuring out how they can benefit from digital transformation. Fifty-five percent of respondents say they are in the process of defining their digital strategy, and almost 10 percent say they have yet to start work on that definition.

Variation within segments Analyzing the different insurance segments, the study finds that commercial property and casualty insurance companies are further ahead in adapting a digital agenda, with 42 percent saying they have implemented a digital strategy — while only 28 percent in the reinsurance industry have done so.

This could imply that consumer demand is a significant driving force for insurers in adopting a digital agenda, as the reinsurance industry is not directly affected by new consumer demands. On the other hand, insurance companies that have direct interactions with consumers, including property and casualty, and life and pension, risk losing market share to more innovative competitors and new market entrants — which can offer products and services the market requests — if they don’t aggressively pursue digital transformation.

Work to do The survey clearly shows that the insurance industry has work to do. Adopting a digital agenda is resource intensive, which the survey reveals by showing that company size directly corresponds with the maturity of developing and implementing a digital strategy. Larger organizations are simply farther down the road.

A key step in defining a digital strategy is to map out the objectives. What does your organization want to achieve by building a digital strategy? Is it a cost reduction initiative to improve margins, a way to provide new products and services to increase the top line, or perhaps a combination of both? And how shall the objective be met?

Setting the direction for the strategy will define your business for years to come. Getting the right advice about which technologies, resources and methodologies to apply to achieve the desired business objectives will be essential.

3

White Paper

Setting the direction for the strategy will define your business for years to come. Getting the right advice about which technologies, resources and methodologies to apply to achieve the desired business objectives will be essential.

Only 36 percent of insurers surveyed have implemented digital strategies.

1 IDC MaturityScape Benchmark: Omni-Experience Digital Transformation in Insurance in Western Europe, November 2017, Doc # EMEA43207117

Three mega trends A key question to consider when creating your digital strategy is where the insurance industry is going. From our long involvement in the industry and research such as this survey, we see the industry being shaped by three major trends:

1. Transforming to a platform economy. We see insurers taking major leaps in moving away from controlling their entire value chain to entering an open platform economy, where other operators and companies are providing services to their customers. This platform strategy is intended to offer a unique range of best-in-class services that strengthen the customer relationship. It also implies that insurers, to a large extent, will focus on customer experience and position themselves as service providers. It is a radical change for some companies, since it is a completely new way of thinking about insurance.

2. The product innovator. Many insurers have spent decades fine-tuning methodologies and risk assessments, creating unique value. A trend we see is insurers becoming product innovators, where organizational capabilities are leveraged to develop sophisticated products tailored to individual customers. This combination is essential for insurers to offer a competitive differentiation, as generic products are rapidly becoming commodities. New market entrants, such as car manufacturers, are taking market share. Product innovation enables insurers to focus on specialized market segments, sell their innovations to other insurers or even become niche players, expanding their business across vertical value chains.

3. The lean organization. A classic strategy is to continuously become leaner, a trend we observe among many insurers. By achieving economies of scale, insurers are able to provide products and services at the most competitive market price; however, this is not a sound long-term strategy. For commodity products, we see new entrants entering the market and providing services that out-compete classic offerings. Cost-cutting is relevant, but it should be leveraged to invest in new products or services. By pursuing a pure economies-of-scale strategy, insurers risk losing market terrain. This strategy can, however, be leveraged for mergers and acquisitions (M&A) processes, if that is a desired outcome.

Advancing digital insurance — IT’s changing role

The digital agenda is changing the perception of IT. Once viewed as a business support cost, today IT is increasingly viewed as a key enabler of the business. This is reflected in the survey in questions about who is driving the digital agenda.

Significantly, the digital agenda is either driven by a group of appointed business and IT representatives (59 percent), C-level leadership (55 percent) or a combination of both. This is a strong indicator that business and executive leadership today is in the driver’s seat of digital transformation, supported by the organization’s thought leaders in IT.

In more than a third of the organizations surveyed (36 percent), the chief information officer (CIO) or head of IT is appointed as the driver for the digital agenda, while 30 percent say the charge is being led by a dedicated chief digital officer (CDO).

White Paper

4

The digital agenda is increasingly driven by the business and C-level leadership.

Digital capabilities are key With the C-level leadership often leading the digital agenda, top executives need to understand the opportunities modern technology can provide their organization. Digital transformation goes deeper than offering customers a modern front-end solution. It improves and changes workflows, processes and even business models. Those are radical changes and typically require large investments. Selecting the right course of action will be pivotal for executive leadership and the business.

At DXC Technology, we see that questions about the digital agenda are no longer solely the purview of executive leadership. Because the initiatives can require significant investments and drastic organizational change, the topic is being brought forward to the board. Therefore, board members must have digital knowledge and understand the implications for the organization so they can adequately spar with executive leadership about the best course forward.

Together with PwC, last year in Copenhagen, DXC arranged an exclusive event for board members in the insurance industry to better equip them for conversations about digital transformation. The board members said the digital agenda is already a subject of discussion but noted that a knowledge gap exists about how new technology can prepare their companies for tomorrow’s market. Experienced partners can help map out possibilities and create a roadmap forward.

The customer in focus While business and executive leaders are typically driving the agenda, the survey reveals that the chief marketing officer (CMO) or head of marketing often has a noteworthy role in digital transformation, with 20 percent of respondents saying that marketing is driving the agenda.

This is an indication of the perceived need to cater to consumer preferences and demands. Marketing will be interested in providing new digital products and services to customers, using data to create a 360-degree customer profile to enhance communications and establish an omnichannel experience to increase customer loyalty. The CMO is an important stakeholder when the strategy for the digital agenda is being discussed, and we recommend including that executive in the core decision team.

Customer experience and optimization top the agenda

The survey reveals two core elements in emerging digital strategies that are significantly more important than the others: enhancing the customer experience, and automation and optimization of internal processes.

Asked to identify the core elements of their existing or planned digital strategy, 86 percent of the respondents said it was enhancing customer experiences, while 84 percent said implementation of digital process automation and optimization. Next was development and implementation of new internal business processes (63 percent), which is closely aligned with the second most relevant agenda point, followed by implementing new IT solutions (55 percent) and establishment of digital platforms (54 percent).

The results indicate that a two-fold objective exists when implementing digital strategy: an external focus on how to provide the best services and products for customers and an internal, cost-optimizing focus on how to increase efficiency.

White Paper

5

These findings are in keeping with a recent global study conducted by The Economist — sponsored by DXC Technology — that found enhancing efficiency, cost cutting and meeting customer expectations were the three most important reasons for becoming more digital.2

The dual agenda At DXC, we have been emphasizing the need to focus on what we call the “dual agenda.” Insurers need to create and deploy new digital greenfield capabilities but at the same time simplify, streamline and modernize the IT landscape. In other words, build the new and tackle the legacy.

Insurers tend to focus on building new digital capabilities such as implementing an omnichannel experience, but that does not add up to digital transformation. The true value — and hard work — lies in tackling legacy systems, modernizing them to make the organization more agile, and taking advantage of existing data and new behavioral data to make more accurate calculations on customer policies.

Agility is key

When asked what technologies and capabilities are most important for insurers’ digital agendas, the study revealed one surprising finding: “Agile” came out on top.

One might expect that artificial intelligence (AI) or cloud technologies would top the wish list for insurers. But DXC’s survey revealed the surprising fact (at least surprising to us) that agile development practices are viewed as being most important, followed by analytics and innovative user interfaces.

This finding indicates a radical need to shift software development from the traditional waterfall and big-bang approach to iterative and incremental methodologies. Agile development enables the organization to quickly move application enhancements — some driven by customer feedback — into production, thus getting new services, products and features to customers faster. That resonates well with the objective for insurers to enhance customer experience.

White Paper

6

.

54%

54%

59%

59%

61%

64%

70%

Enhance current offerings with digital add-on …

Improve productivity

Improve our competitive position

Use digital distribution channels

Increase the agility of our company

Reduce costs

Improve customer loyalty

7%7%

11%13%14%

23%38%39%

45%52%54%

61%75%

80%

Other key technologies and capabilitiesExternal social networks

Virtualization and software definedNatural language processing

Internet of things, sensors, networking devicesBlockchain

Development tools and platform from the cloudBusiness software from the cloud

RoboticsCustomer self-service portals

Artificial intelligence and machine learningInnovative user interfaces

Big Data & AnalyticsAgile development practices

.7%

2%5%

11%14%

16%16%

18%23%

29%29%29%

34%36%

39%48%

54%

Other barriersNo available technologies support our digital goals

Lack of partners that can support or fuel our digital intentionsX+./57/*3/.>5*.*2/*..9

Undefined processes keep ideas from flourishingThere is no imminent need

Key decision makers lack the vision for a digital futureDigitalization and transformation not sufficiently prioritized

Unclear responsibilities and lack of executive driveUncertainty about the value of new digital initiatives

Strategy and goals not clearly defined or implementedLack of willingness to change and risk the status quo

No available budgetLack of necessary skills and competencies internally

The IT processes are too rigidThe corporate culture does not foster change and innovation

IT platforms do not support the changesExisting organizational hierarchies and incentives structures

What do you see as the greatest opportunities in digitalization and digital transformation for your company in the next 2-3 years?

2 “What Makes Digital Leaders: A Full C-Suite Perspective,” The Economist, 2016-2017

Leveraging the potential in data analytics Less surprising is to see insurers expecting great things from analytics. Insurers hold tremendous amounts of data about customers; however, the data is, to a large extent, demographic and static. Customers are categorized and priced using information about their geographical area of residence, education level, age, gender and accident history.

That data doesn’t tell much about behavior. But the technology driving new offerings such as usage-based insurance (UBI) provides property and casualty insurers the opportunity to measure things such as real-time driving behavior and identify where the customer is driving. Combining this with historical data on where and when most accidents take place, insurers will be able to more accurately predict and calculate the risk in providing a policy to a given customer. And the pricing of basic insurance can be consumer-based and tailored to individual needs.

Imagine another UBI example. An interactive system can give real-time recommendations to drivers on where to park to reduce the risk of burglary. This provides a good service to the customer and minimizes the risk for the insurer.

The possibilities are many, and investment in greater analytics capabilities is an indication the industry is looking to leverage new types of data, together with their existing databases, which can lead to enhanced customer experiences and risk reduction.

A better experience It is not surprising that innovative user interfaces are also high on the list of capabilities seen as critical to digital strategies, given that 89 percent of survey respondents say they expect new digital services and customer interactions to improve customer loyalty.

White Paper

7

.

54%

54%

59%

59%

61%

64%

70%

Enhance current offerings with digital add-on …

Improve productivity

Improve our competitive position

Use digital distribution channels

Increase the agility of our company

Reduce costs

Improve customer loyalty

7%7%

11%13%14%

23%38%39%

45%52%54%

61%75%

80%

Other key technologies and capabilitiesExternal social networks

Virtualization and software definedNatural language processing

Internet of things, sensors, networking devicesBlockchain

Development tools and platform from the cloudBusiness software from the cloud

RoboticsCustomer self-service portals

Artificial intelligence and machine learningInnovative user interfaces

Big Data & AnalyticsAgile development practices

.7%

2%5%

11%14%

16%16%

18%23%

29%29%29%

34%36%

39%48%

54%

Other barriersNo available technologies support our digital goals

Lack of partners that can support or fuel our digital intentionsX+./57/*3/.>5*.*2/*..9

Undefined processes keep ideas from flourishingThere is no imminent need

Key decision makers lack the vision for a digital futureDigitalization and transformation not sufficiently prioritized

Unclear responsibilities and lack of executive driveUncertainty about the value of new digital initiatives

Strategy and goals not clearly defined or implementedLack of willingness to change and risk the status quo

No available budgetLack of necessary skills and competencies internally

The IT processes are too rigidThe corporate culture does not foster change and innovation

IT platforms do not support the changesExisting organizational hierarchies and incentives structures

Which of the following technologies and capabilities are especially important for your digital agenda?

White Paper

By implementing a customer-centric, multichannel system of engagement, insurers can recommend products and services to individuals based on customer knowledge and past interactions across all channels — including web, tablet and mobile form factors, voice-assisted engagements and chatbot interaction.

Investment in better user interfaces is a way to accommodate customer demand and position the company favorably in the battle for market share.

Ecosystems to expand lines of service

The insurance industry is changing from being a low customer-interaction industry, where customers are loyal to a brand, to a digital world, where transparency in pricing and service levels leads to greater change in a customer’s preferred brand of insurance. Digital ecosystems enable insurers to provide new services in their portfolio and increase the level of customer interactions.

The change in industry dynamics is forcing insurers to innovate in how they offer services, with the focus in recent years being on becoming an integrated part of larger ecosystems.

DXC’s study finds this new approach is relatively immature, as only 22 percent of the respondents say they are part of an ecosystem that can provide additional services to customers. Interestingly, 46 percent say that becoming part of an ecosystem will be a high priority in the coming years to grow the business. This implies that in 2 years, more than two-thirds of the insurers will be part of an integrated digital ecosystem.

The battlefield for new customers and retention of existing ones lies in extending lines of service through external providers. Late adopters will be exposed to this market development and risk loss of market share to existing competitors and new disruptive players.

.

.

..

Ecosystems will not be important for

our company

9%

Being part of ecosystems will become more

important in the distant future

(3-5 years)

23%We are already part of an ecosystem, providing additional services to our customers

22%

We need to integrate in an ecosystem with other service providers as soon as possible for growing our business

23%Being part of ecosystems

will become more important in the

near future (1-2 years)

23%

Competition will change in the near future (1-2 years)

21%

We will be looking for new competencies in the near

future (1-2 years)

23%

New companies have already gained market share

13%

New competitors have entered the market, but there has been little effect on the competitive landscape

19%

The competitive landscape is currently changing

26%

Competition will change in the distant future

(3-5 years)

21%

We are looking for new competencies to join our organization now

66%

We have the right mix of competencies

to support the digital agenda

11%

To what extent do you see a need for your company to be part of a digital ecosystem?

8

Eighty-nine percent expect that new digital services and customer interactions will improve customer loyalty.

White Paper

The competitive situation is changing New players are already leaving their mark. Some 32 percent of survey respondents say new competitors have entered their local markets, and 13 percent say new players have gained market share. Additionally, 21 percent say they expect the competitive landscape will change in the near future.

This illustrates the need for the digital agenda, enabling insurers to embrace market change and remain competitive. Given that half of survey respondents say they are still working on defining their digital strategies, the success of the new arrivals should add urgency to the task.

How to make insurance more personal, affordable and adaptable

When was the last time your insurance company realized you had a life change, such as getting married or buying a house or having a baby, and designed a policy just for you? And presented it to you without being asked?

Without encroaching on personal privacy, this is the vision of insurance in the future: personalized, affordable and adaptable. AI can help insurance companies understand their customers in powerful new ways and be proactive — and competitive — when it comes to serving their needs.

.

.

..

Ecosystems will not be important for

our company

9%

Being part of ecosystems will become more

important in the distant future

(3-5 years)

23%We are already part of an ecosystem, providing additional services to our customers

22%

We need to integrate in an ecosystem with other service providers as soon as possible for growing our business

23%Being part of ecosystems

will become more important in the

near future (1-2 years)

23%

Competition will change in the near future (1-2 years)

21%

We will be looking for new competencies in the near

future (1-2 years)

23%

New companies have already gained market share

13%

New competitors have entered the market, but there has been little effect on the competitive landscape

19%

The competitive landscape is currently changing

26%

Competition will change in the distant future

(3-5 years)

21%

We are looking for new competencies to join our organization now

66%

We have the right mix of competencies

to support the digital agenda

11%

To what extent do you see the digitalization of the industry affecting the competitive situation?

AnalyticsReport the number of insurance services a customer has used

Advanced analyticsCluster customers by patterns of insurance services used

Machine learningPredict the services that a customer will use

Artificial intelligence (AI)Detect a customer need and recommend a solution

Terminology

9

White Paper

For insurance companies used to traditional sources of customer information such as transaction history, income and age, the importance of this new data may not be obvious. But using this data and AI to get to know customers is key to creating insurance services that are:

• More affordable. Fraud is wasteful for insurance companies and expensive for customers. AI can monitor claims and patterns of customer interaction that suggest fraud and can reduce the number of resources wasted on fraudulent claims. Insurance that costs less to provide can become more affordable for customers.

• More responsive. Responsive insurance companies require the right staff. AI can forecast customer demand so that insurance companies can handle spikes in service needs. You anticipate demand, respond quickly and keep customers happy.

• More personal. Insurance companies have an opportunity to personalize relationships with customers. Take, for example, customizing insurance risk based on individual driving behavior. AI can learn patterns of driver behavior, improve risk calculation and personalize policy terms in response. Getting personal lowers risk for both insurer and customer.

• More valuable. Personal service is most valuable when it is delivered in real time. AI can learn to spot signs of life changes in customers, such as having a baby, and make administrative decisions and respond in real time with insurance options that fit. You automate operations, respond to customers quickly and increase the value of your services.

Find an area of the business that you can make as smart as possible as quickly as possible. Identify the data stories (such as detecting fraud or offering a new service) that you think might make a real difference. Test your ideas, learn and adjust as you go.

Adapted from Artificial Intelligence in Insurance.

“Culture eats strategy for breakfast”

The famous quote (often attributed to Peter Drucker) seems to be reflected in our survey questions about the barriers and obstacles for executing digital strategy. It also underlines the challenge mature insurers face in adopting a digital agenda.

Looking into the top five barriers for executing digital strategy, our study finds organizational structure and culture are key obstacles. This is followed by IT platform limitations and rigid IT processes, indicating that the current IT landscape is a challenge for adopting a digital agenda and hinting at the complexity of these efforts.

After all, digital transformation is not only a question of implementing new technologies; it also involves the entire organization, how it is set up, incentive structures, work processes, and internal knowledge and competencies. Silo-based organizations will face even more challenges with opposing opinions and incentives. That’s why it is critical that executive leadership drives the digital agenda.

10

White Paper

Legacy systems are at the core of insurance companies but also constitute a potential impediment to realizing the full potential of a digital agenda. When planning the digital strategy, it is critical to develop a plan for how to tackle legacy systems, and thus the challenge of the “dual agenda.” Insurers will find that implementing new technologies cannot, by itself, prepare the company for market alterations and new customer demands.

In a recent global study conducted by The Economist on behalf of DXC, the two most-cited barriers for executing digital strategy were budget constraints, followed by a lack of vision at the corporate level about how IT can contribute to meeting strategic goals.3 While budget constraints remain a significant barrier, our study finds that lack of vision is no longer a core obstacle. This implies that the insurance industry has matured in the process of defining digital strategy.

The hunt for talent

The insurance industry needs new core competencies and has begun the global hunt for talent. However, the war for digital talent is vigorous.

One element that easily is overlooked in the discussion about the digital agenda is the need for new skills. Our study finds that two-thirds of the respondents say they are looking for new core competencies today, while 23 percent expect they will begin the hunt in the near future. None of the respondents indicated they could delay the search for new talent for long or simply make do with existing competencies.

Beginning the global hunt for digital talent will be a challenge, given the U.S. Bureau of Labor Statistics forecasts that by 2020 there will be a million more IT jobs than computer science students in the United States.4 The same challenges can be found in Europe. To provide one example, in 2017 the Danish government released a report that predicted Denmark would be lacking 19,000 IT specialists in 2030 compared to demand.5

.

54%

54%

59%

59%

61%

64%

70%

Enhance current offerings with digital add-on …

Improve productivity

Improve our competitive position

Use digital distribution channels

Increase the agility of our company

Reduce costs

Improve customer loyalty

7%7%

11%13%14%

23%38%39%

45%52%54%

61%75%

80%

Other key technologies and capabilitiesExternal social networks

Virtualization and software definedNatural language processing

Internet of things, sensors, networking devicesBlockchain

Development tools and platform from the cloudBusiness software from the cloud

RoboticsCustomer self-service portals

Artificial intelligence and machine learningInnovative user interfaces

Big Data & AnalyticsAgile development practices

.7%

2%5%

11%14%

16%16%

18%23%

29%29%29%

34%36%

39%48%

54%

Other barriersNo available technologies support our digital goals

Lack of partners that can support or fuel our digital intentionsX+./57/*3/.>5*.*2/*..9

Undefined processes keep ideas from flourishingThere is no imminent need

Key decision makers lack the vision for a digital futureDigitalization and transformation not sufficiently prioritized

Unclear responsibilities and lack of executive driveUncertainty about the value of new digital initiatives

Strategy and goals not clearly defined or implementedLack of willingness to change and risk the status quo

No available budgetLack of necessary skills and competencies internally

The IT processes are too rigidThe corporate culture does not foster change and innovation

IT platforms do not support the changesExisting organizational hierarchies and incentives structures

What do you see as the largest barriers or obstacles for successfully defining and executing on the digital strategy?

3 “What Makes Digital Leaders: A Full C-Suite Perspective,” The Economist Intelligence Unit, 2016-2017

4 https://blogs.dxc.technology/2017/11/27/2018-the- war-for-digital-talent-is-vigorous- and-creative

5 https://em.dk/arbejdsomraader/samfundsokonomi-konkurrenceevne- og-digitalisering/regeringens-vaeksteams/digitalt-vaekstpanel 11

White Paper

Over two-thirds of the demand for IT jobs today comes from nontechnology industries such as healthcare, manufacturing and banking. This means that insurers not only are competing against IT companies for digital talent, but in theory against all industries, which illustrates the need for an employer branding strategy to attract young professionals.

Digitalization means fewer people As a consequence of leveraging new technologies, the majority of the respondents (47 percent) in this survey expect to have fewer colleagues in their organizations in the coming 2 to 3 years. Robotics, machine learning and business process outsourcing are some of the reasons why. This implies that when developing their digital strategy, insurers need to consider the organizational consequences.

Conclusion

While the insurance industry is digitally immature, this DXC study shows the industry clearly recognizes the need to more rapidly adopt a digital agenda to drive innovation, improve agility, optimize internal processes, enhance customer experiences and hold off the advance of new competitors.

The need for speed is key, as the study shows established players already see new entrants gaining market share. There is clearly much work to do, but executive leadership has taken up the challenge, bolstered by an emboldened IT that sits at the critical juncture of business and technology.

Getting digital transformation right will require mapping out core objectives. The question insurers need to ask themselves is, “What does our organization want to achieve by building a digital strategy?” This is pivotal, as digital transformation involves the entire organization — from talent to processes, culture, business model, and products and services — and will affect your business for many years to come.

.

.

..

Ecosystems will not be important for

our company

9%

Being part of ecosystems will become more

important in the distant future

(3-5 years)

23%We are already part of an ecosystem, providing additional services to our customers

22%

We need to integrate in an ecosystem with other service providers as soon as possible for growing our business

23%Being part of ecosystems

will become more important in the

near future (1-2 years)

23%

Competition will change in the near future (1-2 years)

21%

We will be looking for new competencies in the near

future (1-2 years)

23%

New companies have already gained market share

13%

New competitors have entered the market, but there has been little effect on the competitive landscape

19%

The competitive landscape is currently changing

26%

Competition will change in the distant future

(3-5 years)

21%

We are looking for new competencies to join our organization now

66%

We have the right mix of competencies

to support the digital agenda

11%Which statement about competency needs in your company do you agree with?

12

About the survey

The survey was conducted in collaboration with IDC, one of the premier global providers of market intelligence, advisory services and events for the information technology, telecommunications and consumer technology markets.

Decision makers and influencers within the insurance industry from IDC’s and DXC’s databases were invited to participate in the survey, covering Denmark, Norway, Sweden, Germany, Switzerland and the Netherlands. In total, 100 respondents provided input, representing pension funds, reinsurance, commercial property/casualty, personal property/casualty, accident and health, and life insurance companies, ranging from startups to large enterprises with more than 10,000 employees.

Respondents participated anonymously and were invited to participate in a webinar with IDC, where the results of the survey were presented. Unless otherwise stated, all analyses and statements in this report reflect DXC’s point of view.

Questions about the methodology of the survey may be forwarded to:

Anders Elbak Associate Director IDC Nordic aelbak@idc.com

Learn more at www.dxc.technology

www.dxc.technology

About DXC Technology

DXC Technology (DXC: NYSE) is the world’s leading independent, end-to-end IT services company, serving nearly 6,000 private and public-sector clients from a diverse array of industries across 70 countries. The company’s technology independence, global talent and extensive partner network deliver transformative digital offerings and solutions that help clients harness the power of innovation to thrive on change. DXC Technology is recognized among the best corporate citizens globally. For more information, visit www.dxc.technology.

© 2018 DXC Technology Company. All rights reserved. MD_8620a-18. July 2018

White Paper