Transformation in the Dutch Non-life B2C Insurance Sector: Sourcing Implications

Abstract

A large transformation in the Dutch non-life B2C insurance sector is in motion. Insurers are considering sourcing options to improve their competitive position as customer loyalty is decreasing and the online channel is becoming more important. In addition, the innovations in the non-life B2C insurance sector are limited. A change is required. To understand the required change better, the capabilities of insurers are assessed. For this research, eight expert interviews were conducted. The key capabilities identified are product development and pricing and analysis. Additionally, one other key capability was mentioned: investment. The remaining capabilities, information technology service, operations, and marketing, can be outsourced to a large degree. Identifying the key capabilities is the first step in determining the proper sourcing strategy. Insurers need to engage with third parties to remain in business. Additional research is required to prepare detailed roadmaps for such transformations.

Appendix 1 – Interview Protocol

Personal information:

Name:

Company:

Position:

Years of service:

Years of service in current role:

Relevant previous roles:

Company information:

Insurance portfolio:

Number of policy holders:

Geographical spread:

Number of employees per country (indicative numbers only):

Information technology and information technology service maturity

Information Technology strategy:

Annual Information Technology budget (indicative numbers only):

Contribution from IT to business performance:

Customer satisfaction (business perspective! Not end user perspective):

Per interview there is a focus on a single theme. The themes are: marketing, product development, organization, pricing & risk analyses and operations. In addition to the focus theme the other themes will be addressed 70 %/30 % split (40 min). The other themes will be only discussed briefly.

Marketing

Positioning and responsibilities of the marketing function:

Maturity of marketing function:

Sales channels (amongst others direct sales, indirect sales and third party channels):

Time required to adjust prices and /or to introduce new products and /or adjust existing products:

Duty of care: responsibilities to inform customers (such as key facts):

Obtaining customer data from third parties (facebook, internet etc.):

Campaigns through third parties:

Analysis of customer behavior:

Product development

Positioning and responsibilities of the product development function:

Maturity of product development function:

Standard product offers:

Product characteristics:

Product bundling:

Organization

Explain the organization structure:

Maturity of the organization:

Value chain:

Future organization (anticipated transformations):

Difference from organizational structure of competition:

Pricing & risk analyses

Pricing strategy by product:

Dynamic pricing and individual pricing:

Market analyses:

Risk analyses:

Technology support (such as big data):

Operations

Processes and standardization of processes:

Use of third parties for back office operations:

Self service options:

Contribution of re-insurance:

Level of integration with suppliers: