Other parts of this series:
In the first blog in this series, I discussed some of the competitive pressures on insurers as they confront new players from inside and outside the industry.
In this environment, choosing where to invest – and how to execute – will not be an easy undertaking. Boundaries are blurring and insurers, brokers, reinsurers, ecosystem partners, employees and customers are interacting in new sometimes transformative ways.
Insurers need a clear road map for investments in talent, data, technology and the customer experience. They need to form the right partnerships and alliances and structure these relationships in ways that benefit all parties. Above all, they need to think in terms of becoming a ‘living business’ that provides services designed for the changing needs of the customer. These services flow through people’s lives and touch them in different ways at different times.
Such services must be also be designed to evolve, to look outside themselves and to change and connect with other services as appropriate. This means designing with data in mind, both to listen and collect data and to seek out, recommend and, if appropriate, to connect the consumer with third-party services that augment the core service.
Not all insurers will become living businesses, but those that do can become hyper-relevant, adapting to a fast-changing environment and creating new opportunities for profitable growth. They will employ new business models that monetize data, physical space, platforms, algorithms, brand and risk. They will also provide an exceptional employee experience, nurturing a customer centric approach and creating a culture that encourages innovation at every level.