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Project 1: How Management in the German Insurance Industry Can Handle Digital Transformation

Contact: Florian Wiesböck, Lu Li, Christian Matt, Thomas Hess, Andreas Richter

Abstract:
Information technology (IT) heavily impacts various industries’ products, processes, and business models. Therefore, a strategy on how to approach this IT-induced digital transformation seems vital. This also holds true for the insurance industry. Using the Digital Transformation Framework (DTF), we provide guidance to managers of insurance companies by illustrating how three European insurance companies approached their digital transformation. Among other findings, our analysis shows that, for the insurance industry, structural changes can be seen in the recent appointment of Chief Digital Officers or the establishment of dedicated central digital transformation units. Changes in value creation are reflected in new insurance products (such as insurance against cyber risks), a focus on personalized, situation-based insurance and the continued improvement of business processes through IT. In general, insurers have begun to see the strategic value of IT that lies beyond solutions for business process improvement, and started to attribute a more enabling role to IT within their organizations.