world insurance Report

World Insurance Report 2018

Digital agility is key for insurers as BigTechs ponder entering the market. Almost 30 percent of customers globally are willing to buy insurance products from BigTech companies such as Amazon and Google, spurring a greater need for traditional providers to develop future-ready operating models to satisfy evolving customer preferences.

Paris, May 22, 2018 – While insurance companies struggle to deliver a superior customer experience, BigTech1 firms are poised to enter the insurance industry. By enhancing their digital agility and developing future-ready operating models, insurers have an opportunity to attract and retain customers to compete with this disruption, finds the World Insurance Report (WIR) 2018 from Capgemini in collaboration with Efma. The report also examines how traditional incumbent insurers have fallen behind their banking peers in meeting customer demands, making them vulnerable to such non-traditional entrants.

“The use of data and being able to offer a truly digital customer experience are both critical for the insurer of the future, something Big Tech firms like Amazon and Google excel at. The threat from such entrants is more real than the insurance industry might want to admit,” said Anirban Bose, Global Head of Financial Services and Member of the Group Executive Board at Capgemini. “Insurers, risk assessors by nature, must urgently turn their gaze inwards and consider the competitive risks within their own industry in order to evolve and survive.”

Insurance is playing catch-up in delivering technology-enhanced customer experiences

Insurance firms ranked third after retail and banking on cross-industry customer experience scores, with the greatest difference among Gen Y2 customers aged 18 to 34. While more than 32 percent of Gen Y customers said they had a positive experience with their bank, less than 26 percent reported a positive experience with their insurer. The report also found that customers across all segments now accept digital communications at the same level as conventional channels, with more than half of customers placing a high value on company websites for conducting insurance transactions, and more than 40 percent considering a mobile app as an important channel.

Additionally, as new digital technologies enable innovative, value-added services, almost 46 percent of tech-savvy3 customers and 38 percent of Gen Y customers are willing to receive proactive, personalized insurance offerings through a variety of channels, which could lead to new revenue opportunities.

BigTech firms are poised to take advantage of the insurance industry’s missteps

The large, multinational technology organizations that represent BigTech are taking slow, deliberate steps towards establishing a presence in the insurance industry by leveraging their strong reputation for superior customer experience. Globally, 29.5 percent of customers said they would consider buying at least one insurance product from a BigTech firm, which is a 12-percentage point increase from 2015 when only 17.5 percent4 of customers indicated willingness to purchase insurance from BigTech firms.

Gen Y and tech-savvy segments appear most inclined to switch loyalties from traditional insurers. These customers not only cite lower positive experiences with traditional firms, but they are also more likely to change their insurance provider within 12 months and are more open to purchasing insurance products from BigTech firms.

Evolving customer preferences drive insurer investments in digital agility

Disruptions from environmental, technological, and organizational factors along with the ambitions of BigTech companies are making digitally agile operating models a necessity. InsurTechs, new insurance firms that use technology innovations to focus efficiencies and attract specific customer segments, are leading the way with digital agility. Collaboration between traditional insurers and InsurTechs is essential for the efficient and cost-effective development of digital capabilities across the industry.

More than 80 percent of insurers cite evolving customer preferences as the most critical factor driving digital agility, and their investments provide insights into the industry’s future. Almost two-thirds of insurance firms are testing smart watches and wearables, more than one-third have deployed telematics, and more than 55 percent are investing in speech recognition and blockchain, with robotic process automation currently the most highly deployed core digital technology among them.

“To gain value from their investments, insurers must think about the big picture and develop a holistic approach that is strengthened by InsurTech capabilities, rather than piecemeal adoption,” said Vincent Bastid, CEO of Efma.

Digitally enabled, future-ready operating models ensure long-term sustainability

To succeed in the digital era, the report highlights that insurance firms must foster digital agility and develop operating models to deliver a superior customer experience, bringing together the best of digital and traditional channels. For example, more than 65 percent of surveyed respondents said end-to-end personalization of the customer journey was their highest need. However, to enhance the customer experience with personalization, insurers need a digitally integrated ecosystem that seamlessly interconnects insurers with customers and partners, in order to enable an efficient flow of information and services.
A digitally integrated ecosystem supports the real-time, personalized services that customers are growing to expect and demand. With enhanced digital agility, insurance firms can gain greater insight into customer needs and improve time to market for innovations, while driving greater operational efficiency and cost savings the report concludes.

About the World Insurance Report 2018
The World Insurance Report (WIR) 2018 covers all the three broad insurance segments―life, non-life, and health insurance. This year's report draws on research insights from 20 markets: Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong, India, Italy, Japan, Mexico, Netherlands, Norway, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. The survey provides insight into customer preferences, expectations, and behaviors with respect to specific types of insurance transactions.

For more information, explore the report website at

About Capgemini

A global leader in consulting, technology services and digital transformation, Capgemini is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of 200,000 team members in over 40 countries. The Group reported 2017 global revenues of EUR 12.8 billion.

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About Sogeti

Part of the Capgemini Group, Sogeti makes business value through technology for organizations that need to implement innovation at speed and want a local partner with global scale. With a hands-on culture and close proximity to its clients, Sogeti implements solutions that will help organizations work faster, better, and smarter. By combining its agility and speed of implementation through a DevOps approach, Sogeti delivers innovative solutions in quality engineering, cloud and application development, all driven by AI, data and automation.

Capgemini is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology. The Group is guided everyday by its purpose of unleashing human energy through technology for an inclusive and sustainable future. It is a responsible and diverse organization of over 350,000 team members in more than 50 countries. With its strong 55-year heritage and deep industry expertise, Capgemini is trusted by its clients to address the entire breadth of their business needs, from strategy and design to operations, fueled by the fast evolving and innovative world of cloud, data, AI, connectivity, software, digital engineering and platforms. The Group reported in 2021 global revenues of €18 billion.

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About EFMA

A global non-profit organisation, established in 1971 by banks and insurance companies, Efma facilitates networking between decision-makers. It provides quality insights to help banks and insurance companies make the right decisions to foster innovation and drive their transformation. Over 3,300 brands in 130 countries are Efma members.

Headquarters in Paris. Offices in London, Brussels, Barcelona, Stockholm, Bratislava, Dubai, Mumbai, and Singapore.


Paul Saunders
Global Marketing & Communications Director

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