AXA, Ping An and Allstate are transforming their companies so that they can benefit from the disruption that shakes the insurance industry.
Successful interferers provide significant innovation in the products and experiences they offer. They break down entry barriers that have long protected markets and overcome the defenses of established suppliers. In addition, they limit the prices of their offers by cutting costs in their organizations. Our research shows that disruptors invest more in innovation than their conventional competitors; focus on systems rather than just technology; scale innovation between their companies; and ensure that new systems are limitless, adaptable and contain both human expertise and the capabilities of intelligent machines.
In the insurance industry, three major operators in particular are reviewing their companies and turning into powerful disruptors:
Ping An: This Chinese giant for financial services is one of the most lively examples of an insurance company becoming a major disruptor. The company has recently transformed its brand into “Ping An – Finance & Technology” to emphasize the strategic importance and value of its investment in technology. Since 2017, it has expanded its operations to become an important international provider of financial services and technology. It plans to spend $ 15 billion on key technologies over the next ten years to achieve this goal. Ping An's transformation strategy currently focuses on three core technologies – artificial intelligence, cloud services and blockchain. The company has developed five major ecosystems – financial services, healthcare, car services, real estate transactions and smart city services. To support its technological innovation and development, Ping An runs eight research institutes and close to 50 research labs employing more than 30,000 people. It has a total of 100,000 technology employees. The company is scaling up a host of new technologies in all its major operations. They range from AI-based agent interview systems, to intelligent business assistants and policy publishing applications to text-reading robot processes. It also expands large AI-based cloud services for massive data users such as carmakers and dealers. The company's Global Voyager Fund, valued at $ 1 billion, invests in emerging fintech and healthtech companies around the world, while Ping An Ventures supports the start-up of new startups.
AXA: This French headquarters with headquarters has invested more than € 1 billion over the last five years to accelerate innovation in its operations. It transforms from a traditional insurance company, which helps clients mitigate potential losses, to a comprehensive financial organization. Key areas of focus are healthcare, mobility, platform economics and business continuity services, such as cyber security, for SMEs. Innovation partnerships are at the heart of AXA's transformation strategy. In early 2019, it formed AXA Next to build new services and business models that expand its business beyond insurance and promote partnerships. AXA Venture Partners, the company's venture capital arm, has an investment fund of EUR 600 million and already supports about 40 start-ups. AXA has also opened innovation labs in San Francisco, London and Shanghai and start-up incubators in London, Paris and Tel-Aviv. The insurer promotes further innovation partnerships through AXA Partners. This subsidiary helps large organizations improve the experiences they give their customers. Supporting AXA's pursuit of new business opportunities is the AXA REV unit that researches and develops new technologies.
Allstate: In the United States, Allstate has begun a comprehensive digital transformation of its business. The company strives to improve product distribution with advanced diagnostics, better customer segmentation and optimized marketing; improve their business by using computer science and behavior analysis to strengthen customer service; digitize their claims processes by introducing real-time compensation; and upgrade their telematics services to offer usage-based insurance. Allstate is also looking to grow beyond insurance services by expanding business units such as Arity telematics and predictive analytics companies as well as its InfoArmor identity protection subsidiary, SquareTrade's consumer asset protection provider and its road support. The company is also keen to grow its Allstate Benefits business. Arity is particularly interesting. It uses innovative data management techniques to store, interrogate and extract insights from the huge flow of about a petabyte of new information it collects each month.
Critical to the transformation of the insurance industry such as AXA, Ping An and Allstate is their strategic redistribution of funds. This allows them to invest in vital new technology and business opportunities while maximizing core asset and resource performance. We believe that the most effective way to make this strategic change in funding is to use a Wise Pivot strategy. This allows companies to transform and grow their core business while freeing up capital to develop and scale up new business opportunities.
For more information on how insurance companies can benefit from the disruption that sweeps their industry, the links below. They provide lots of useful information. Alternatively send me a email . I would like to hear from you .
Technology Vision for Insurance 2019.