On Tuesday, a report confirmed that around 40 percent insurers find google as a potential threat just because of its powerful branding and capability to use consumer data. Google has posed serious threats to other household names like Amazon and Wal Mart, based on interviews with around 150 insurance executives.
Insurance companies are looking to use technology to get more information about their customers and potentially offer them lower-cost insurance.
“To withstand the growing competition, insurers must build up their brands, learn to take advantage of real-time customer data, and develop agile operating models,” Capgemini said.
However, some insurance industry experts are confused that the technology companies will enter the heavily-regulated insurance segment directly, seeing them as more likely to form partnerships with insurance companies, potentially giving those firms an advantage.
The insurance industry also needs to perk up its service if it is going to win business among younger customers.