Other parts of this series:
As we have noted throughout this blog series, disruption is under way in every area and segment of insurance – particularly in distribution – and is gaining momentum. In response to changing customer demands – and aided by the rapid adoption of innovative technologies – new entrants from inside and outside the industry are quickly emerging.
Ultimately, these disruptive trends will benefit the customer by providing greater choice, improved transparency and more flexible pricing. We believe that insurance customers will put increasing pressure on carriers to provide a more tailored experience that not only personalizes products and services, but delights customers in ways they may not have even envisioned.
As they explore options, insurers should keep three priorities in mind:
1) They must dedicate the necessary time and talent to formulating a strategic response to disruption, informed by a deep understanding of evolving customer needs, with the full attention and commitment of senior management and the board of directors;
2) They need to simultaneously invest in both core and disruptive distribution models, and in creating a culture and environment where innovation can thrive; and
3) They should exploit opportunities to reduce costs, thereby improving margins and funding additional investment in new customer experiences, products and services.
Insurers unable or unwilling to adapt quickly run the risk of falling behind competitors from inside and outside the industry. A carefully designed investment strategy – supporting both core and new initiatives – combined with fast and effective execution can help insurers and their customers benefit from disruptive industry trends.
To learn more, read The Future of Insurance Distribution: Charting the Course for Disruptive Growth.