Tunnels, once the biggest innovation in transport, are ready to be the biggest again through innovation and innovation of transport. While Elon Musk has been looking at the sky with SpaceX, he has also gone underground with the Boring Company and created test tunnels in California and operational tunnels in Las Vegas. The key to Musk's tunnel concept is the rapid technical development in boring machines. Prufrock, the current all-electric drill, can dig a tunnel with a diameter of 12 inches up to 10 miles per day.  The Boring Company aims to produce a boring machine that could be drilled up to 7 miles per day, an amazingly fast pace that will change the transportation landscape and create a new ecosystem that connects people and places more than ever before.
The value of tunneling is also a new level of versatility and looks at the concept of mobility rather than individual types of transport. It will improve pedestrian traffic, car traffic and certainly some forms of metro traffic, but it will also facilitate new types of underground travel, such as autonomous vehicle traffic and hyperloop travel. New tunnels can be dug without disturbance in the infrastructure and they can be an excellent way to improve ground level and atmospheric environments through underground commuting without emissions. Who would have thought that digging could lead to a more sustainable future? This is just another example of how complex problems are often best solved with solutions that break beyond the boundaries of the Convention and incorporate a new 360 approach with an external perspective.
Recently, we looked at Majesco's latest thought-leadership report, Digital Insurance: The Turning Point in an Attempt to Look Into the Future of the Insurance Experience. Customers are increasingly choosing insurance companies not only for the risk product but also for the combination or risk product, customer experience and value-added services. Because of this, future insurance managers will be the ones who provide smooth, enjoyable experiences with the best views of products and value-added services. Can we learn anything by digging deeper?
An Outside In, 360 Mindset
No one will argue that insurance options exist for those who can innovate and adapt. But insurers need to approach their thinking differently from the past with 360 mindsets outside. Each insurer has its own mining business to do. Not only do they need to think ahead about the effects of new technologies, such as Boring Company, on P&C insurance products, but they need to think about the effects of 360 digital views and value-added services that create greater value for customers today and tomorrow. When it comes to it, the customer is the one who drives the insurers to renew. They are particularly keen on companies that can provide unconventional solutions to difficult insurance puzzles.
Insurers need to be clear about how to succeed in the future of insurance by inventing what and how they do things. They need to lay the groundwork for a new digital business model that embraces the customer and technology with a 360-degree display outside. We face a constant flow of disruptive factors while witnessing unparalleled opportunities.
Think about these pressures, threats and opportunities, including:
- Non-insurance providers: Companies like Tesla and GM offer / embed insurance and have access to more real-time data to competitively price and guarantee risk than most insurers will have, which could potentially shield traditional carriers from these opportunities. Budweiser is also entering the game with a new company offering "lifestyle-based" insurance plans. Budweiser states that although this may seem unconventional, it is what they take with them to an untapped market for the customer's first solutions.
- Connected Everything: Connected devices, in addition to telematics, enable mileage, location, weather-related and behavior-based insurance and pricing for P&C and L&A products, which would link premium to use, risk or more ̵
- On-Demand and Embedded Insurance: The increase in on-demand insurance, which is expected to increase by 30% by 2026,  will expand to almost all industries. In addition, embedded insurance is ready to go from selling to buying an insurance policy with an insurance policy that is automatically included in the purchase of something else — such as a vehicle, home, electronic equipment or more.
- Continuous warranty: Rather than price once, a shift to constantly update the risk profile emerges. This changes policy conditions and pricing using the continuous flow of data from various sources such as cyber, fitness devices, telematics and other IoT devices and encourages people to manage their risk, which can lead to lower prices
Today's customers are extremely digitally skilled , with higher expectations, different needs and a demand for better experiences that are not met with the "traditional" insurance strategy, which creates a error line between customers' expectations and the insurance ability to deliver. In our customer survey for individuals and companies (Figures 1 and 2), the digital shift is well underway, which is reflected in the area of interest between both older and younger generations for digital customer engagement and pricing.
Figure 1: Interest in digital customer engagement and pricing – consumers
Why AM's best innovation rating is related to digital
Insurance companies using digital technology, data and AI / ML are ready to skip competition by organizing talent, technology and ways of working around a digital-first vision to give customers the opportunity. These customers will respond to intelligent value propositions delivered through compelling journeys and experiences. In addition, this foundation enables insurers to accelerate further innovations, operationally and strategically, to meet the growing focus of the AM Best Innovation Rating.
In the recently published reports on innovation ratings, AM Best noted that while the pandemic forced companies to squeeze years of innovation into one year, most companies still have a long way to go.  The report also found that there is a noticeable link between superior credit insurers and insurance companies using advanced processes and technology-driven innovation initiatives to create transformative results.
This may sound a bit like InsurTech lingo, but the consequences are deep and easy to see. If insurers are willing to dig deeper into their digital transformation needs, they may discover that data, analytics and digital technology can help them create new avenues for income and value. The costs of advanced technology are constantly falling as their impact increases. For example, the flexible, scalable, volume-based pricing of cloud-based processes necessary for digital services creates huge cost savings compared to server-based systems in place, but more importantly provides the flexibility and flexibility to connect to ecosystems and adapt quickly to market changes.
This is similar to tunnel drilling. Prufrock's boring cost per mile drops just as the need for tunnels increases. The result in both cases (tunnels and insurance) is an ability to improve traffic flow, improve speed, improve the experience and meet demand while reducing the overall use of previous technology. This is what makes digital insurance a more sustainable solution in the long run. It solves several formulas simultaneously.
Conclusion … a digital first strategy that will accelerate an insurer's transformation will position that insurance company as a future leader.
Figure 2: Interest in digital customer engagement and pricing – SMB
Can a digital strategy meet the digital insurance shift fast enough?
Nothing satisfies an insurance customer more than having a positive personal interaction experience with any company — even their insurer. All that is required is to meet their expectations of a personal, smooth experience for a claim, a purchase or a routine contact such as invoicing and payments. It's about creating the "Amazon experience" for insurance.
Of course, the opposite is true when these interactions are different, frustrating, complex or redundant. Customers become disillusioned and dissatisfied with the insurer.
COVID has tested insurers' ability to turn to a digital first strategy, with an increased focus on a 360 View customer experience in many different areas of the insurance value chain. Years of adding various digital features such as functional portals were challenged. It became clear that real digital transformation required a change of mind to a new way of thinking, planning and doing. Leaders know this.
Digital leaders use digital technology to improve customer experiences and to improve their strategic and operational capabilities, as shown in Figure 3, with lines across the law enforcement up to 60%. But when you go back and look at where insurers are compared to what customers expect, there is a bigger gap for all insurance companies – Laggards, Followers and even Leaders. Just comparing a company with other insurance companies does not lead to meeting a new era of digital customer expectations.
Figure 3: Leaders, successors and laggards' response to the development / implementation of digital functions
Today's customers are becoming increasingly digitally skilled with higher expectations, different needs and a demand for better experiences that are not met with the "traditional" insurance approach , creates a fault line between customers 'expectations and insurers' ability to deliver. These digital gaps will be the new differentiators of competition.
In Gartner's Emerging Risks Monitor Report from earlier this year, they noted that “organizations are concerned about their ability to keep pace with a rapidly changing business landscape, driven in part by concerns about their own organization's backlog and misunderstood digitization strategies. 
Unfortunately, insurance still covers decades of older business assumptions and technologies that are blocking the path to digital maturity. Many insurance companies were early users and innovators in technology, but have built up a complex landscape of technical assets over decades, resulting in significant technical liabilities. The "modern" solutions ten years ago no longer meet the requirements of a digital age or match the capacity of InsurTechs, which raises the bar.
Creating 360 Views for customers that provides transparency, intuitiveness, efficiency and compelling experiences requires the next generation of core, data and digital platform solutions that use cloud, API, microservices, AI / ML and other technologies. This next-generation technology stack enables the exchange and intake of valuable information from various sources to produce highly personalized customer experiences in near real-time.
Insurers must make a future thought about risk assessment in real time. They need to rethink customer journeys to go beyond a "tunnel vision" portal to a new customer experience, create new products, offer new services and renew their business models.
This next-generation digital experience for customers represents a critical response to the need that insurers are increasingly in right now: an existential requirement to stand out in a crowded and increasingly agile, highly competitive industry. Success requires a range of solutions built around the customer.
As we enter the new decade, the future of insurance is rapidly evolving with robust digital business models. Insurers need to keep their customers happy through next-generation user experience technology. With the belief that customer retention is dependent on customers' perceptions of insurance companies, it is time for insurers to create a new strategy for digital business and digital experience. Insurers need to invest in features and tools that create enhanced customer experiences and help enable growth in this competitive 360-image environment.
Where's your digital underground? How can you capture the digital opportunities that will quickly transport your organization into the future?
For a closer look at why this era requires a new look at digital insurance strategies, be sure to read Majesco's latest thought-leadership report, Digital Insurance: The Bending Point. You also want access to Majesco's latest webinar, The New Normal: A Catalyst for Cloud Adoption, which you received from Microsoft.
 “On-Demand Insurance,” NAIC, June 11, 2020, https://content.naic.org/cipr_topics/topic_ondemand_insurance.htm   Hopper, Jason, Imsirovic , Eden, “A year in: How insurance companies make AM's best innovation assessments,” Carrier Management, 10 May 2021, https://www.carriermanagement.com/features/2021/05/10/220357.htm
 "Gartner Survey shows rate of change as the best emerging risks for organizations in 2Q19," Gartner Press release, July 24, 2019, https://www.gartner.com/en/newsroom/press-releases/2019-07-24-gartner -survey-shows-pace-of-change-as -top-emerging-r