In an era of digital transformation, the insurance industry is experiencing up close and personal – and sometimes painfully – exactly what disruptive change means. New business models are overturning decades-old ways of doing business. Abraham Lincoln reportedly once said “The best way to predict the future is to create it.” Here are a couple of the promising directions for insurers in Switzerland to chart their digital insurance journey.


AI-powered insurance

Cognitive technologies – such as conversational interfaces, robo-advisers, risk prediction based on real-time analysis of data from millions of IoT-connected devices – are the future. Insurers in Switzerland are now taking action. Pax insurance Group, for instance, has founded its own insurtech company Creadi to develop digital business models and AI-based tools, such as a smartphone-based insurance broker for “digital nomads”. Baloise is also bringing AI expertise on board. Its investments in digital startups have brought AI-powered watch insurance (using digital imaging for risk assessment), the ability to mine relevant data points from document streams, and much more: all aimed squarely at speeding and simplifying insurance.


Ecosystems on the rise in digital insurance

Creadi’s tools are interfaces to an open marketplace for insurance – and this also exemplifies the growing importance of service aggregators in the insurance landscape. Recognizing the need for business models that cut across traditional industry boundaries, insurers will increasingly build entire “ecosystems” that embrace aggregators, insurers, insurtechs and agencies to deliver new services through new channels, underpinned by blockchain-based workflows.

Swiss insurer Helvetia shows how this works. With its Business Ecosystem Home, Helvetia is collaborating with a range of digital players, including mortgage and pension planning service aggregator Moneypark, and property agent Flatfox. The resulting ecosystem is a complete value proposition, with Helvetia as its orchestrator, that goes far beyond insurance.

To build successful ecosystems, insurers will need to look outside their doors (and industry) and figure out how to combine value contributions from disparate players into revenue-generating business models (incidentally spawning new jobs such as “ecosystem manager” along the way).


Transform to maintain market share

The gross value added of the insurance industry in Switzerland is holding steady at 28,86 billion CHF (2017 figures), but in order to maintain market share, incumbent players need innovative business approaches and agile, responsive digital platforms to handle integrated workflows with multiple partners. Cognizant’s experts can help companies put together and implement their roadmap.

Learn more about Cognizant solutions for insurance here.