Smart growth is simply the ability to expand a business profitably. While this seems logical, it’s not always easy to determine where and when that growth should occur. This is especially true as insurers not only battle industry incumbents for market share, but also prepare to face new market entrants such as retailers, auto manufactures and online service providers (e.g., Google, Amazon). As business models change at an unprecedented rate, it’s critical that insurers rapidly and accurately assess new risks and opportunities to ensure profitable growth and avoid unforeseen losses.
Insurers must be prepared to couple predictive analytics with strategic planning to identify profitable opportunities with a high potential for fast market uptake. This includes not only identifying new or underserved markets, but also incorporating a thorough understanding of an insurer’s risk appetite into the selection process. Insurers can take advantage of prebuilt base products and rating models, as well as operating models to help capture market needs quickly and align them with their own goals for growth. Armed with this knowledge, the insurer is then prepared for the next step: product design and rollout.