5 mins with: Milan Veskovic, former global chief sales officer and managing director, Wefox (Part 2)

“There is also a strong push from shareholders to prepare for the future especially the long-term shareholders.”

With consumers surrounded by a wide range of good digital experiences, insurers from all facets of the industry are now adapting to changing customer behaviour and expectations. In part two of our expert interview series, PolicyDock sits down with Wefox’s former global chief sales officer and managing director Milan Veskovic to get his take on the digital momentum in the insurance industry.

Digital transformation is a huge topic. In your opinion what is the impression people have about digital transformation? 

I think everybody has understood that this is what is happening right now. I would say that people have responded in two ways: one group is pushing their digital transformation into the future while the other group is just adjusting to the minimum requirements of digital transformation.

Do people tend to have just one impression of digital transformation? For example, it means embracing either the cloud, robotics or blockchain?

Everybody has their own definition. Start-ups, they see the full potential for sure; maybe administrative personnel in certain large enterprises would think that document management is the greatest good in digitalisation, so it is always based on the perspective of the person.

What are some of their concerns about digital transformation? 

Regulations in general, specifically something such as the GDPR. 

The other concern is the impact that digital transformation will have on capability. After all, if we can offer more customised products to each customer but at a lower profitability, then the question is why would I as a large enterprise make billions of Euros or dollars less in profit?

So it comes down to how people tend to view the money spent on IT? As a cost, and not necessarily an investment.

Yes, but there is also a strong push from shareholders to prepare for the future, especially the long-term shareholders. So yes, to a certain extent it is true what you are saying but then again it is a cost which is necessary to prove to the shareholders that there is a future.

Do some industry players feel like they must dismantle legacy systems before they can go digital?

Dismantling legacy systems was/is an enormous cost and effort - why would I dismantle my paper folders if I do not need them in digital form? Why would I dismantle my old local servers if they still work to a certain extent? 

While there is technology out there that allows you to utilise cloud technology without wiping the slate clean, the overall trend is to dismantle but I am confident that companies will take rational decisions which will lead to progress, a profitable progress. 

It will not be fast, but I am sure that the big players will find ways to remain as profitable as they are while dismantling parts and preparing for the future. It is just a process.

What would you say to someone who is apprehensive about using cloud technology? 

I would just show this person the future and where the future is heading. In the short term, there will be more investment in areas like customer relationship management software and data analytics. Some insurers may also start exploring operating models that offer product flexibility, modernize core platforms, migrate to the cloud to broaden capabilities, team up with cyber security firms to expand into areas like cyber insurance. When you showcase to every rational person what is coming then they will make the right decisions and prepare for the future.

Read the first instalment of our expert interview series with Milan Veskovic here.

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