In previous posts in this series, we have looked at what digital twins are, why insurance companies have been slow to adopt them and four areas where I see opportunities for digital twins to have a big impact. For insurance companies that realize the potential value of digital twins, I suggest the following steps to get started.
Review your computer practices. Evaluate what tools and techniques your company uses and where data is stored so you can deconstruct data silos. If you have not yet started your cloud journey, it is now time to start moving your data and any applications to the cloud.
2. Prioritize the structure of flow analysis functions. Digital twins need a sound data supply chain to be efficient. Consider embedding sensors in physical products and spaces, and invest in solutions that provide fast input, preparation and analysis of generated data. Your commercial customers are probably already doing this for themselves for their own reasons (such as occupational safety and efficiency). So the question is how do you “connect”; to that data supply chain?
3. Develop a list of important use cases. Think about where digital twins will generate the most impact in your business.
4. Imagine product development cycles. Can you visualize what product development would look like with digital twins at the center? Also think about how practices for product and price development would need to change, given that new payloads of data come with a higher frequency.
Integrate intelligence capabilities with digital twin efforts. Pilot-generative (iterative) design or synthetic data solutions to explore how they can improve your design, testing and product development.
Design twins to connect across the entire business or ecosystem. Make API strategy a priority when developing digital twins. This means evaluating and including external (or open) data sources, as well as constructing an API for the digital twin itself.
7. Lead digital twin strategies with ecosystem-scale thinking. Plan for large systems as the long-term goal. The amount of data available will only increase from here, so limited systems will hardly provide a short-term stop.
8. Focus on digital twins. Think entire offices, supply chains and more. Use individual twins to gain greater visibility in larger collaborations and combine them where possible.
9. List potential digital twin-driven partnerships. This can be building a new twin in collaboration or using an already established network of digital twins.
The real value, as I see it, lies in sewing the digital twins together. It is not an easy task, so it will involve some serious planning and a solid roadmap for implementing an overall digital twin infrastructure. But insurance companies that seize the opportunity will see their businesses develop and grow. They will be better able to collaborate with ecosystem partners, innovate with new products and offers, and gain a more nuanced understanding of risks and thus be able to price products in a more appropriate way.
If you want to explore the possibilities that digital twins offer, feel free to contact me directly. We can help map your journey and make sure you choose the right tools and ecosystem partners to maximize your investment.
To learn more about the technology trends that are expected to affect insurers, read our report: Technology Vision for Insurance 2021
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Disclaimer: This content is provided for general information purposes only and is not intended to be used in consultation with our professional advisors.