g&m: Digital transformation of an insurance agency

• Main Authors: PAN, Gary, BHATTACHARYA, Lipika, LEE, Benjamin Huan Zhou
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Digital Transformation; Technology and Analytics; Insuretech; Organizational Transformation; Digitalization Strategy; Growth Strategy; Accounting
• Online Access: https://ink.library.smu.edu.sg/cases_coll_all/379; https://smu.sharepoint.com/sites/admin/CMP/cases/SMU-21-BATCH%20%5BPDF-Pic%5D/SMU-21-0031%20%5Bg&m%5D/SMU-21-0031%20%5Bg&m%5D.pdf?CT=1635236861650&OR=ItemsView
• Institution: Singapore Management University

Analysts have often compared Digital Transformation to an iceberg and a company embarking on it to a ship trying to manoeuvre the iceberg. Some facets of the transformation are easily visible, while others are under the water and difficult to identify and manage. Douglas Chia, Managing Director of g&m Insurance, was well aware of this theory when he embarked on his firm’s digital transformation journey. Chia had implemented small digital initiatives in his organisation in 2019, and was able to see significant revenue growth of 30% in 2020, despite a sluggish market because of the Covid-19 pandemic. Chia wanted to continue driving his firm’s growth and positive revenue trend, specifically with digital solutions that targeted the evolving insurance market. He set goals to embark further on the digital transformation journey, by introducing an online portal providing online insurance products and an aggregator platform by the end of 2021. The above goals were in tandem with the developments in the insurance industry, as more and more firms were introducing online insurance products and offering them directly to consumers, thus eliminating the need for an intermediary agent or broker. Amidst such changing market conditions, brokerage firms like g&m had no option but to transform their business models to compete in the market. Chia wanted to continue using his agent based business model for existing customers, and introduce online solutions to target new market segments. What strategies could Chia implement to further g&m’s digital transformation journey to expand his business? This case allows students to learn about: (1) strategies for digital transformation of small firms (2) ability of digital transformation initiatives in introducing new customer value propositions and innovative business models (3) Key ingredients for enabling digital transformation on a small scale (4) The link between knowledge management and digital transformation.