Senior Managing Director of Global #Insurance @Accenture. Opinions my own.
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Articles by John Cusano
Insurance success lies in ecosystems
Insurers may recognize the importance of ecosystems in the future, but that doesn’t mean that they are completely equipped for disruption. In fact, many carriers currently overestimate their ecosystem capabilities. While 97% of the companies surveyed considered themselves a highly attractive ecosystem partner, less than 5% actually have the attributes of ecosystem masters.
How ecosystems will disrupt insurance
By building secure ecosystems, insurers can secure their future Insurance is one of the industries that is most vulnerable to future disruption. The introduction of new technologies brings with it of efficiencies and opportunities, but it also brings with it new risks as the face of insurance changes permanently. Much of this disruption will come from the impact of ecosystems.
Five powerful examples of American insurtech
As insurtech continues to gain steam around the world, the FinTech Innovation Lab highlights innovation in the United States. Insurtech innovations are exploding across the globe right now. Last year, insurtechs attracted $4.4 billion of global investment, which is an increase of 98 percent from 2017 and an all-time high. This astonishing growth in investment has been matched by burgeoning geographic diversity.
Improving the Wellness Value Chain
Traditionally, treatments such as massage therapy, yoga classes, or even acupuncture, were rarely considered an important part of the wellness chain—and getting insurance providers or employers to pay for them as a preventative measure was difficult. In recent years, however, more understanding has emerged about the value of these types of wellness treatments, both in terms of injury prevention and claim avoidance.
How blockchain can benefit insurers
A new blockchain solution can create significant efficiencies for insurers When insurers integrate customer data, they can effectively lower costs, save time and improve data quality. Historically, this has been a complex challenge, but with the introduction of smart technologies, authentic data integration can now be simplified. For example, Accenture and Generali Employee Benefits (GEB) recently debuted a first-of-its-kind blockchain solution for the employee benefits industry.
Insurtech and DARQ
Digital is no longer a differentiator for insurers—it’s expected. So what comes next? Not that long ago, the world of insurance seemed insulated from the digital disruption that was sending shockwaves through industries like music, retail, and advertising. It was considered really forward-thinking and innovative for an insurer to experiment with digital ways of doing things.
How insurance CFOs can translate data into impact
To make the most of business data, CFOs need to act strategically Given the data-driven nature of their industry, insurance CFOs have a natural predisposition towards driving new value from analytics, which to an increasing degree relies on intelligent automation tools. In fact, among the industries surveyed for Accenture’s “The CFO Reimagined: from driving value to building the digital enterprise” research, insurance scores in the top three for adopting artificial intelligence.
Customers need a better deal on connected auto insurance
Customers need to be in the driving seat for connected auto insurance to deliver big revenues. The auto sector is without doubt setting the pace in the connected insurance business. The next stage in the race to deliver highly-personalized mobility services is going to put customers in the driving-seat. And alliances with insurtechs are likely to be crucial for big insurers looking to hitch consumers to their new connected vehicle offerings.
Insurtechs can boost carriers’ connected insurance ambitions
Start-ups can help carriers accelerate revenue growth from connected insurance. Connected insurance offers carriers huge opportunities to push up profits and grow new markets. Global revenues from connected auto, home and workplace insurance, and allied services are expected reach as much as US$177 billion by 2023. Insurtechs are likely to play a key role in helping carriers secure a big slice of the burgeoning connected insurance business.
The Top 10 Insurtech Deals of 2018
The data for insurtech investments in 2018 is in. It reveals a maturing landscape characterized by ballooning investment volume and growing geographic diversity. For years, insurtechs have been producing some of the most exciting and innovative ideas in the insurance industry, from cutting-edge uses of AI to radical new business models. Accenture’s analysis of data from CB Insights suggests that 2018 was the biggest year yet for investment in the space.
Three insurance innovations to watch right now
Every year, insurers impress judges and their industry peers with their inventive ideas at the Efma-Accenture Innovation in Insurance Awards. Three organizations have already earned monthly innovation awards, demonstrating customer-centric approaches to building technology solutions for the digital age. Customer expectations are changing in the insurance industry.
Bold insurers are taking the lead in data monetization
While many insurers have been slow to capitalize on their vast stores of data, some far-sighted carriers have begun monetizing this increasingly valuable resource. They’ve started harnessing data from their own operations, and often external sources, to boost profits by improving efficiencies and creating new businesses. These innovative companies are likely to secure a significant “first-mover” advantage over their more cautious rivals.
Carriers must keep agile to stay in step with data laws
The introduction of new data protection legislation in Europe has shown how international laws and regulations can have a huge impact on companies’ data monetization initiatives. Multinational insurers looking to monetize their data need to be constantly ready to adjust their systems and processes to comply with changes in local data laws and business regulations.
Veracity is critical to the success of insurance data monetization
Data monetization offers insurers huge opportunities. But it also presents them with some big risks they need to carefully manage. Inaccurate or corrupt information can quickly scupper insurers’ plans to monetize their data. Information is the life-blood of the insurance business. If it becomes suspect, the consequences are likely to be grave.
The insurance workforce of the future: how to become an AI-driven company
In my blog series on how to boost your Artificial Intelligence Quotient, I looked at different ways to apply AI along the insurance value chain across the entire enterprise. In this post, I’ll look at the role the future workforce will play in creating AI-driven companies, using insights gleaned from our Future Workforce Survey for Insurance . Accenture research suggests, by the year 2035, AI will grow productivity in key economies by up to 40 percent.
Partnerships are the key to insurance data monetization
Partnerships are likely to be critical to the success of insurers’ efforts to monetize their data resources. Most insurance companies don’t have sufficient skills, infrastructure or experience to use their huge stores of data to improve their operational efficiencies or create new markets. Innovative insurtech firms, as I mentioned earlier in this blog series, can provide insurers with much of the insight, expertise and agility needed to effectively monetize big data streams.
Five smart tips for successful insurtech partnerships
The growing influence of scores of new insurtech firms, eager to disrupt the traditional insurance industry, has alerted many insurers to the huge potential of data monetization. Plenty of these start-ups are keen to work with insurance companies to help them use their data resources to improve efficiency or create new sources of revenue. By collaborating with innovative insurtech companies, conventional insurers can capitalize quickly on a wide range of data monetization opportunities.
Early-movers are winning the AI race in insurance
While many insurers are yet to see significant returns from their investments in artificial intelligence (AI), some carriers are already reaping big rewards. These high-performers are reporting business improvements worth four to five times their investments in AI solutions. Some have even achieved a tenfold return on such investments. What are these insurers doing to achieve such impressive returns? They’re implementing AI on a big scale. They’ve got momentum mindsets.
What small business owners want from direct commercial carriers
In my previous post in this series, I looked at the reasons that small business owners are generally unhappy with the customer experience in small commercial insurance. This time, I will focus on what these owners want from direct carriers and how insurers can improve their relevance to this market. These insights, by the way, come from experiential research Accenture and Fjord conducted with small business owners in the US.
Insurtech firms could help carriers unlock vast data profits
Many big insurers are sitting with enormously valuable assets that they’re not converting into revenue. They’ve accumulated vast stores of commercial data that could bolster their profits significantly but don’t have the skills or infrastructure to monetize this data. Insurtech firms, once seen as a threat by many insurers, could help carriers release the profits locked in their data.
Start-ups paint the future at InsureTech Connect
Scores of start-ups took to the stage at this year’s InsureTech Connect (ITC) conference to demonstrate their innovations and show how new technologies are likely to shape the insurance industry. Many of them also announced partnerships with prominent insurance companies.
Momentum drives successful AI strategies
Insurance providers are fast recognizing the huge potential of artificial intelligence (AI). They’re deploying intelligent solutions in many parts of their businesses. Claims management, underwriting, sales and the customer experience are among their key AI applications. Our research shows that around 80 percent of insurers believe AI will revolutionize how they gather information and interact with customers.
Looking forward to meeting you at InsureTech Connect 2018
The rising influence of insurtech firms is one of the most exciting developments in the insurance industry. This year’s InsureTech Connect (ITC) conference, in Las Vegas from 2 to 3 October, promises to be a hive of information about the latest developments and trends in the insurtech sector. Once again, Accenture is one of the event’s sponsors and I’m really looking forward to attending.
Data monetization – the next oil or fool’s gold? - Accenture Insurance Blog
The explosion of data available to insurers has created huge business opportunities. We estimate that the monetization of data could generate up to US$8 billion of annual profit for the global insurance industry. Such profit could be earned through greater operational efficiency, improved risk management, reduced fraud and new products and services. Coupled with the great potential of data monetization, however, is a big responsibility.
How to use AI in the insurance value chain: claims management
How do you increase quality in claims assessment, management and administration? We share insights into an end-to-end AI-powered claims automation approach to increase quality, processing efficiency and reduce cost. In this blog series, I’ve spoken about how AI increases process efficiency, reduces costs and helps business solve problems.
Compelling living services in workers’ comp insurance
In this blog series, I’ve looked at how workers’ compensation insurers and their clients can use industrial wearables and the data they generate to deliver a triple win: safer workers, lower insurance costs and greater productivity. Such solutions can enable an organization to monitor, assess and intervene in workplace health and safety concerns with more speed, capability and accuracy than ever before.
What can incumbent insurers learn from insurtech startups?
With the ongoing emergence of new technologies and the increasing use of big data across all industries, including insurance, it’s no surprise that insurtech is a sector that’s growing rapidly. Accenture’s analysis of data from CB Insights found that in 2017 the number of insurtech deals rose by 39 percent compared to those in 2016. And the total value of funding reached US$2.32 billion, a 32 percent increase on 2016.
Navigating the headwinds on the horizon for workers’ comp insurance
In my first post in this series, I outlined how workplace injuries cost companies and their workers’ compensation insurers billions of dollars each year and proposed that analytics tools and a new generation of wearables could help bring down the costs and risks of workplace injuries. In this post, I’ll look at why workers’ comp insurers should look to innovation and technology to prepare for headwinds the industry may face in the years to come.
How insurtechs are transforming insurance underwriting – 7 examples - Accenture Insurance Blog
Start-ups working in the financial industry have been on a steady increase since at least 2010, and now with the heightened focus on insurtechs, we are seeing more of these ambitious companies developing technology that helps underwriters manage risk. As John Cusano notes in his blog post, “Insurtech Firms Star at New York’s Fintech Innovation Lab”, the rise of insurtechs is being embraced throughout the industry, with top-tier firms actively integrating many of the innovative solutions.
Efma-Accenture Innovation in Insurance Awards laud back-office apps
Creative customer-engagement applications and clever distribution channels often attract the most attention when insurers discuss innovation in their industry. However, smart back-office improvements often deliver big benefits to carriers eager to boost revenues and grow profits. This year’s Efma-Accenture Innovation in Insurance Awards highlighted some impressive applications of digital technology to enhance claims management and underwriting.
Are wearables a potential solution to the $250 billion challenge of workplace injuries?
Workplace injuries cost companies and their workers’ compensation insurers billions of dollars each year—the US Occupational Safety and Health Administration estimates the annual direct and indirect costs of lift-related injuries alone top $56 billion. In this series of blog posts, I’ll explore how a new generation of industrial wearables and analytics tools promises to change this picture for the better.
Blockchain: the Silent Enabler of Insurance Partnerships
Blockchain has received a lot of hype, but in this blog series I want to focus on an area of insurance where I see actual potential: ecosystem partnerships. As firms seek to join more ecosystems with partners ranging from brokers to repair shops and other service providers, insurers need to find a scalable way to manage all of those relationships and provide a seamless customer experience.
Insurtech firms star at New York’s FinTech Innovation Lab
Insurtech firms starred at the recent Demo Day at the FinTech Innovation Lab in New York. I’m an executive sponsor at the lab, which was founded by Accenture together with the Partnership Fund for New York City. Since the facility opened in 2010, the surge in the number of technology start-ups looking to break into the financial services industry has been staggering. Nearly 50 start-ups have received backing from the FinTech Innovation Lab. They were chosen from hundreds of applicants.
Winning Experiences in Small Commercial: The Sale
What was the last big or innovative purchase that you made? Think through the experience. How did the company help you make the decision? Did they offer tools? Did they reach out to help you? Did they make you feel confident as you went through the buying experience? Did they help you feel good about your buying decision? For the best companies out there today, the answer would be “Yes” to all of the above.
Big carriers shine at Efma-Accenture Innovation in Insurance Awards
This year’s Efma-Accenture Innovation in Insurance Awards showed that insurers throughout the world are recognizing the enormous opportunities that are being created by advances in digital technology. It was a huge success showing insurers increasing focus on innovation to better serve their clients leveraging an ever-increasing array of technologies and partnership opportunities.
Insurers must delight their brokers as well as their customers
Customer expectations and behavior are changing dramatically because of digital disruption and rising consumer clout. Customers want service providers to offer them enticing and rewarding digital experiences. What’s more, this trend is also taking place among business customers. Insurers don’t just need to revamp their direct channels to meet the growing demands of their customers. They must also change their indirect channels.
It’s vital that insurers get workers on board before rolling out AI
Insurers looking to artificial intelligence (AI) to improve their underwriting need to be smart about how they introduce this powerful technology to their workforces. Collaboration between underwriters and AI, as I mentioned in my previous blog post, has huge potential. It can improve substantially the effectiveness and performance of underwriting professionals. Our research shows that more than 75 percent of insurers plan to use AI to automate tasks in the next three years.
AI offers insurers a big step up in underwriting performance
There’s been plenty of discussion in all sorts of forums about how artificial intelligence (AI) could undermine jobs in many big industries. AI can certainly improve efficiency and productivity. The big benefit of this technology, however, is its ability to enhance the performance of workers. AI has huge potential to assist workers in all facets of the insurance industry. Underwriting, especially, offers great opportunities for workers and intelligent machines to collaborate.
Insurers are grappling with the big challenges posed by new risks
Warren Buffett’s caution about underwriting cyber-insurance put the spotlight on one of the big challenges facing carriers today – how to address a slew of new insurance risks. The Oracle of Omaha told shareholders at the Berkshire Hathaway AGM that he didn’t want the group’s insurance business to pioneer cyber-cover because the risks were largely unknown and potentially too big.
Insurers should include start-ups in their digital transformation plans
Insurers are increasingly recognizing that their ability to innovate is vital to their future success. Unless they can change their traditional business models, and create work environments that reward creativity, they’re likely to fall behind their competitors. They might even struggle to survive.
Start-ups can help insurers disrupt their own businesses
Low revenue growth and modest investment returns are forcing big insurers to maximize the value they’ve built up in their businesses over many years. Often, much of this value is trapped. Insurers can’t access it because it’s embedded in outdated systems and processes. Digital transformation projects I’ve been involved in recently have released value trapped in big insurance businesses by increasing agility, responsiveness and innovation at these companies.
Insurtech firms need to join ecosystems to win over carriers
Imaginative insurtech firms have the potential to accelerate innovation throughout the insurance industry. Much of this potential, however, is being blocked. Many insurtech start-ups struggle to gain access to big insurers. They can’t demonstrate or test their applications at scale. Funding is therefore scarce. What’s more, plenty of insurance start-ups are isolated from other innovators addressing similar problems. They find it difficult to secure the resources and information they need.
Where’s the insurtech disruption?
The insurtech sector is booming. But there’s little sign that it’s disrupting the insurance industry. Sure, we’ve seen the arrival of smart insurtech firms such as Lemonade, Metromile, Trōv and Oscar Health. And big carriers, including AXA, Aviva, Transamerica, MassMutual and American Family, have forged ties with a variety of insurance start-ups. Nonetheless, the huge disruption of the insurance industry that many insurtech firms and their backers were forecasting a few years ago has yet to happen.
Efma-Accenture Innovation in Insurance Awards 2018 now open for submissions
I am pleased to announce that the Efma-Accenture Innovation in Insurance Awards 2018 are now open for submissions. A joint initiative by Efma and Accenture, the awards have served as a catalyst for innovation in the insurance sector, and have been instrumental in helping insurers develop better, more disruptive strategies since 2016. This year, for the first time, there will be two award ceremonies.
The technology conundrum insurance executives haven’t quite solved - Accenture Insurance Blog
Sixty-three percent of insurers see digital technologies as a way to improve the customer experience. In my previous blog, I essentially argued that insurers run the risk of misreading the true potential of technology by seeing it primarily as an enhancer of efficiencies. And yet, at the same time, these same executives clearly do see the value of using mobile technologies in emerging markets and of big data in all sorts of ways.
Accurate performance monitoring is vital for insurers embarking on digital transformation - Accenture Insurance Blog
To succeed in business, it helps to be optimistic. But sometimes optimism can get in the way of objectivity. Here’s a case in point. Most insurers, according to recent research by Forrester Consulting, are confident that the digital experiences they provide their customers are better than those offered by their competitors. Something’s not right here. We can’t all be front runners; it takes the majority to make up the following pack. So why are insurers so bullish about their digital services?
Traits of a Truly Agile Insurer: Investing in data analytics (Part 4) - Accenture Insurance Blog
By now it should be clear that agility is a critical consideration for insurers looking to gain a competitive edge. In this final video in a four-part series, I talk about why insurers need to invest in data and how more extensive use of data analytics can lead to better business agility. Watch the previous videos in this series: Traits of a Truly Agile Insurer: What does agility mean for insurers? (Part 1)
Friend or foe? Big insurers shift stance on insurtech start-ups - Accenture Insurance Blog
While some carriers view the rise of insurance technology start-ups with trepidation, others have been quick to seize on the insurtech trend as an opportunity. Major insurers are some of the biggest investors in fledgling insurtech firms. Far from seeing these new companies as rivals, they’re embracing them as partners.
Big Questions, Quick Answers: Question 4 - Accenture Insurance Blog
How can I be sure digital transformation will deliver the growth I need? VIDEO To put it bluntly: you can’t. But that doesn’t let you off the hook. You may be able to pass on the opportunities, but the threats are too real to ignore. So where does that leave you? You’ll have to watch the video: View all my videos here as my series continues.
Intelligent automation gives insurers a big opportunity to boost the quality of their customer service - Accenture Insurance Blog
Intelligent automation offers insurers huge improvements in efficiency and productivity. One of its biggest benefits, however, is likely to be its ability to enhance the quality of service insurers provide their customers. By combining artificial intelligence (AI), machine learning and advanced robotic process automation (RPA) systems, insurance providers can handle policy enquiries and applications far more quickly and accurately.
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