Dutch Insurance Outlook 2018: New Winds of Opportunity
Navigating to sustainable growth
The Dutch insurance industry has found itself in stormy weather for quite some years now. Nevertheless, one could say that after the long and costly implementation of Solvency II, and just before the equally impactful implementation of IFRS 17 kicks in, there is a window of opportunity. This is the time where insurers can prepare for the near future in order to achieve sustainable growth, which can be compared to Dutch Olympic Sailor Marit Bouwmeester's preparational journey towards a comparable goal.
In this year’s Dutch Insurance Outlook we investigate the possibilities insurers have to achieve sustainable growth. In order to support sustainable growth, the following 3 dimensions can be taken into account: margin improvements, pockets of growth, and capital management.
These 3 dimensions form the structure of this Outlook, in which we elaborate on different subjects across 10 chapters. Please find below a sneak peek of each chapter.
1 | Setting sail for sustainable growth
The insurance industry has experienced some turbulent years, and more challenges will need to be conquered in the near future. In order to achieve sustainable growth, Dutch insurers will need to prepare for and adapt to an increasingly saturating market, changing employee -and customer needs, new regulations and innovative technologies.
2 | Robotisation: it's time to industrialise
Over the last years, Robotic Process Automation (RPA) has gradually moved through the stages of the hype cycle and today it is at the peak of expectations. Insurance companies have valid reasons to be highly interested in the concept of RPA, as they have many activities with a high potential for automation. We provide five main enablers that help to ensure a successful scaling up of RPA within an insurance context.
3 | Accelerating the agile insurer
Digital technology is having a profound effect on 21st century organisations. It is fundamentally changing the way we work, the way we manage, where we work, how we organise, the products we use, and how we communicate. In the Outlook we explain the concept of agile, and provide seven accelerators for scaling agile in the insurance industry.
4 | Dynamic pricing is not just about profitability
In the years to come, dynamic pricing in the insurance sector will become business as usual for many insurers. But profitable pricing is only possible when insurers have insight into the risk, profitability, and the expected behaviour of their customers. In this section we discuss the most important aspects and considerations with regard to dynamic pricing.
5 | Making blockchain a building block in the insurance value chain
The expectations for the disruption that will be brought on by blockchain technology are high. Deloitte is of the opinion that there is also huge potential for the Dutch insurance industry to take the lead and further invest in blockchain knowledge and experience. We therefore elaborate on the opportunities that blockchain can offer insurers.
6 | Data Analytics: Improve customer service and gain sustainable growth
Data is at the heart of an insurer, since the servicing of clients and risk management is based on data. Deloitte believes it is essential to strengthen an insurer’s data and analytics capabilities, since it can improve an insurer’s services, underwriting, sales, risk profiling and personalisation of offers. In this section we provide three recommendations that help insurers to start building their data analytics capabilities.
7 | KYC enables customer service improvement
In the saturated Dutch insurance market, customer satisfaction is becoming increasingly important to retain client base. We provide three main foundations for capitalising on the opportunities digital interaction offers, and a four-step approach for supporting and growing those foundations.
8 | Opportunities for growth in the retirement market
There is never a dull moment in the Dutch retirement industry, and several forces are likely to fundamentally change the Dutch retirement landscape in the near future. In this section we explore these forces, the opportunities they pose, and how insurers can capture them.
9 | Converting cyber risks into insurance opportunities
Everyone in the insurance industry is impacted by cyber, which can pose both opportunities and threats. In this article, we discuss the opportunities, and the steps insurers can take to develop cyber risk transfer capabilities.
10 | Preparing for IFRS 17: Choosing the right capital levers
In May 2017, the IASB published IFRS 17 Insurance Contracts. This means that life insurers have to make important changes when it comes to accounting. In this section we tap into the difference between Solvency II and IFRS 17, capital levers that should be considered, and suggested ways of choosing and implementing the right capital optimisation strategy.