Models of Success: The High-Performance Insurer of the Future

Past performance is no guarantee of future success. With the economic downturn behind us, those insurers who emerged intact may find the market to be a very different place. From changes in consumer behavior to new (and disruptive) technologies, it isn’t business as usual. In fact, Accenture research shows that, in some cases, an entirely new business model is necessary.

The High-Performance Insurer of the Future

Accenture analyzed more than 70 leading carriers to assess the likely impact on insurers of changing conditions. Our intent was to discover what insurers must do to achieve high performance in the coming years, given the current and changing environment. Four areas of focus emerged:

  • Technology innovation.
  • Increased risk and regulation.
  • Shifts in consumer behavior.
  • Changes in the market.

Six Business Models

It’s one thing to understand current market trends and projects for the future, but carriers must also be positioned and prepared to adapt to those trends. In order to grow profitably in this environment, insurers must determine the business model that best encompasses the organization’s strategic approach and addresses target markets, geographies and segments.

Accenture looked at six business models that can enable high performance:

  • Industrializers 2.0 take strong positions in mature markets by optimizing and industrializing.
  • Value pickers capitalize on a strong position in a mature market to enter high-growth emerging markets with large returns and quick payback.
  • Global conquerors use a complex business model to cover multiple geographies and engage in multiple lines of business.
  • Emerging titans develop business models that exploit growth opportunities in emerging home markets.
  • Risk masters operate internationally with high degrees of specialization, centralization and standardization.
  • Brokers 2.0 use electronic channels extensively to service customers and smaller brokers.

Learn more with The Point, which offers an executive summary and podcast of The High Performance Insurer of the Future study.

Download the full report here.

Michael Costonis

About Michael Costonis

Michael Costonis is Managing Director of Accenture’s Insurance practice for North America. He is responsible for setting the overall vision and strategy for the practice, as well as pursuing new client relationships.

Costonis has twenty years experience developing, managing and deploying large scale technology systems, business processes, and strategies for some of the world’s leading insurers, including property & casualty, life, and multi-line insurance companies. In his career with Accenture, he has worked with more than 50 leading insurance clients in 14 countries around the world.

In addition to his role as North America industry executive director, Costonis is the lead for Accenture’s global claims services. In that role, he oversees claims strategies, assets, capabilities, and sales development. He also has led Accenture’s Insurance Solutions practice in North America, where he was responsible for driving growth for Accenture’s asset-based business in Insurance, including claims, underwriting, and policy administration.

Costonis has authored several articles in leading insurance trade publications, and has been quoted in The New York Times, Bloomberg News, Reuters News, Best’s Review, Insurance & Technology, InformationWeek, National Underwriter, Technology Decisions, and the Philadelphia Inquirer. He has spoken at several leading industry conferences in the U.S. and internationally.

Costonis received a bachelor’s degree in political science from Swarthmore College (Swarthmore, PA). He is based in Philadelphia.


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