How can digital affinity channel insurance unlock better profitability?

Only 30% of companies¹ capture the full value of their digital transformations, according to a recent McKinsey study. In the competitive insurance market, digital affinity insurance programs can offer a solution to prevent business loss, increase customer retention, and drive growth. Read the case study below to learn how Marsh helped to build a digital affinity insurance program through a three-party project.

Case study: Optimising digital transformation for a leading automotive insurer

The challenge

A leading Japanese automotive insurer was under pressure from clients in the automobile industry, including dealers and manufacturers, to move away from offline sales to introduce a digital extended warranty and tire protection programs. These offerings were intended to enhance after-sales services for end-users and moving away from manual processes helped to record enrolment and claims effectively. However, the insurer struggled to make progress due to a lack of expertise in developing an IT solution and a reliable and efficient operational flow that suited their clients’ specific needs. This challenge left the insurer at risk of losing market share as competitors continued to adopt digital solutions.

How Marsh helped

Marsh collaborated with the insurer and an insuretech partner to create a digital affinity insurance platform with streamlined operational flow. This digital solution transformed the sales and claims handling process, significantly boosting operational efficiency and minimising errors. With the platform in place, the insurer successfully rolled out its after-sales services to over 5,000 dealers who work with its clients, expanding their service reach across a vast network. Marsh also provided consulting services that analysed data trends, identified anomalies, and optimised the loss ratio.

The outcome

The digital affinity insurance platform transformed the insurer’s operations. With streamlined digital sales and claims processes, they increased customer satisfaction, reduced inefficiencies, and improved communication between dealerships and customers. This also provided them with data-driven insights, allowing them to manage risks and enhance profitability proactively. The move from offline to digital helped the insurer safeguard its market position and unlock new revenue streams.

Why Marsh

Digital affinity insurance programs are a vital component of a successful digital transformation strategy. As this case study demonstrates, Marsh’s expertise in finding the right partner to help your business in building and optimising these programs can help businesses overcome inefficiencies, retain customers, and drive growth.

Reach out to your Marsh contact to help you identify and evaluate your digital transformation strategy to help your organisation unlock the full potential of digital transformation through an affinity insurance program.

¹Mckinsey (2022). Three new mandates for capturing a digital transformation’s full value. https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/three-new-mandates-for-capturing-a-digital-transformations-full-value

Please note that Marsh PB Co., Ltd and Marsh McLennan are not engaged by nor involved in any manner with Bonus Ranch and its promotion, and has not placed any insurance for nor insured any of its businesses or operations. Marsh as a licensed insurance broker will not request customers to make payment via non-standard methods, such as the transfer of money to any individual’s bank account.