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Wednesday, September 27, 2023
HomeNordic MarketsHow Technology is Reshaping the Insurance Industry

How Technology is Reshaping the Insurance Industry

The insurance industry is undergoing significant changes driven by digitalisation and data. Insurance companies like Tryg are adapting their business models to meet customer expectations in the digital age.

The insurance industry is undergoing significant changes due to advancements in technology, that presents opportunities in new business models and challenges in stricter regulation. As digitalisation and data become increasingly prevalent, insurance companies are adapting their business models to meet the evolving needs and expectations of their customers.

According to Lars Bonde, the COO at Tryg, a Danish insurance company, digitalisation is one of the key factors shaping the insurance industry. As customers increasingly embrace digital channels, insurance companies must adapt and provide convenient, user-friendly experiences. Bonde highlights the importance of serving customers in a digital way to meet their expectations efficiently:

“Customers today demand a digital, seamless and effective case processing and digitalisation provide us with a great opportunity to meet that demand and enhance customer experience,” says Bonde.

“Tryg 360 is our new way of organising data so all business units can use it in an effective way. We build the system with open API’s to share data with partners and try to find out which ecosystems we should be a part of and then we build a system where we can control the consent of the customers.”

Lars Bonde,
COO at Tryg

By embracing digital channels Tryg can leverage data-driven insights and optimise internal operations. Tryg is building a new claim system. Bonde explains:

“Over the last five years we have received a growing number of claims year by year. To make sure we can manage the number of claims most efficiently, we want the customers to fill them digitally. When doing so, we can provide the customers with the compensation within a couple of minutes. And going forward, we aim that 80 percent of the claims will be registered digitally,” says Bonde.

Adapting to the Age of Digitalization

The increasing availability of data comes with great opportunities for the insurance companies to better calculate risks and prices on the customers. While Bonde acknowledges a need for open data to be regulated by institutions as the EU he also emphasizes that a company like Tryg is not able to share how they calculate prices since that would force the company to reveal the secret sauce.

However, Tryg is working on finding ways to share data with partners. To embrace the increasing availability of data and enhance collaboration, Tryg has developed Tryg 360, a comprehensive data organization system. Bonde explains:

“Tryg 360 is our new way of organising data so all business units can use it in an effective way. We build the system with open API’s to share data with partners and try to find out which ecosystems we should be a part of and then we build a system where we can control the consent of the customers. So, we know when and with whom we can share data.”

Overcoming Challenges and Embracing Sustainability

Inflation, regulatory changes, and environmental concerns pose challenges to the insurance industry. Lars Bonde highlights the uncertainty surrounding future prices due to inflation, urging insurance companies to closely monitor and adapt their strategies accordingly. “If you are working in insurance and not worried about inflation you are making a big mistake” Bonde concludes.

He emphasizes the impact of new regulations as well as the increasing demand for addressing environmental issues, where insurance companies can play a crucial role in addressing environmental concerns and making a positive impact. Bonde acknowledges that while individuals must also consider their daily activities, insurance companies have a unique opportunity to contribute to sustainability efforts.

“Where we can really make a difference as an insurance company is on the claim side,” Bonde says and continues: “If we can help repair shops to be more sustainable, that would lead to something. When you look at the CO2 saved when we repair windshields instead of replacing them, we save double the amount of what the entire company of Tryg is emitting over a year.”

The approach aligns with their commitment to sustainability and demonstrates their proactive efforts to make a tangible difference. Bonde emphasizes that sustainability initiatives are not only crucial for the environment but also for meeting customer expectations, and Tryg aims to enhance their value proposition and meet customer needs effectively.

“Claims is where we will spend a lot of time in the future, both getting more sustainable and reducing claims expenses, and creating better products for our customers.”

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