The Battle Between Traditional & Digital Insurers!
Levis Murunga
Digital Transformation Evangelist - Driving Digital Transformation In Africa By Implementing Scalable Business Tech Solutions.
For years, the insurance industry has been dominated by a few major players, with little room for successful new entrants. However, the landscape is shifting rapidly. Emerging technologies, changing customer expectations, and data-driven decision-making are forcing traditional insurers to rethink their strategies. The real question is: how quickly can insurers adapt to market changes and leverage technology to enhance customer engagement, open new revenue streams, and avoid disruption?
The Digital Adoption Curve in Insurance
The adoption of digital solutions in insurance is no longer a luxury—it’s a necessity. Companies that embrace digital transformation are seeing increased customer engagement and lower service costs. The key lies in leveraging data analytics, automation, and direct-to-consumer models such as online platforms, brokers, and aggregators.
Accessibility via Web Portal, Mobile App, and USSD
A multi-channel approach ensures that insurance services are accessible to a wider audience, including those without smartphones or stable internet access.
Data for Smart Decision-Making
At the core of insurance is risk calculation, and data is the fuel that powers smarter decisions. Without a data-driven system, insurers risk falling behind. The ability to collect, analyze, and utilize data effectively determines an insurer’s competitive edge. Advanced analytics help in pricing policies more accurately, detecting fraud, identifying upselling/cross-selling opportunities and enhancing customer personalization.
Real-Time Claims Tracking
Happy Customers become your Brand advocates. The ability for customers to track their claims in real-time improves satisfaction and impacts overall revenue. Transparency across every step/status builds trust, reduces inbound service inquiries, and enhances loyalty—leading to higher retention rates and a positive brand reputation.
Build vs. Buy
One of the biggest challenges insurers face is deciding whether to build their own technology platforms or invest in existing solutions. Established platforms such as Bloom offer speed to market, cost efficiency, and a competitive edge. On the other hand, custom-built systems can be tailored to specific business needs but often come with high development costs, longer implementation times, and ongoing maintenance challenges. What should they opt for? Implementing customizable prebuilt systems!
Parting Shot!
As new players enter the market with cutting-edge technology, traditional insurers must decide—will they innovate and stay ahead, or will they be left behind? The price of purchasing a modern insurance system is often more sustainable than maintaining legacy systems with costly restrictions. Investing in digital transformation is no longer optional; it is the key to long-term sustainability and profitability.
What do you think is preventing insurance institutions from adopting digital systems?
For more information on digital insurance transformation: [email protected]