What is “good” and “bad” often depends on your perspective. If I can lower my prices slightly and draw a lot of business from my competitor, it’s good for me and bad for him. If he stocks the product my customers want but I can’t get, I can cry “foul,” but my loss will be his gain.
The word “disruptive” has that same duality. It often defines the nimble organization embracing innovation, the one that may best be able to understand and monetize disruption, rather than the lumbering monolith that is likely to be threatened by it.
The beneficiaries of disruption are the insurance organizations looking beyond the kind of products and alliances and customer relationships that previously defined insurance, and ahead to daring new business models. And they also are the retailers, the technology giants and the other businesses looking for ways to add insurance to their product portfolios–usually but not necessarily with an insurance company partner.
Disruptive programs that could affect insurers are being launched all the time. Ford Motors, for example, just announced an auto-sharing pilot involving rideshare companies Getaround in California and easyCar Club in London. The program will help reduce the cost of ownership for owners of Ford Credit-financed vehicles willing to lease their cars for short-term use to pre-screened drivers.
Disruption has become a way of life–whether we’re ready for it or not.
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