Tomorrow’s Alphas will need to create their own strategic choices that go beyond the tactics of today’s leaders. These Alphas will not be generalists. Instead they will make decisive and strategic choices about specific markets, industries, specialties and geographies. In today’s blog, I’ll examine some of the strategies identified by my colleague, Anudeep Chauhan, that are essential for the Alphas of tomorrow.
1. Business portfolio optimization for sustainable profitability
Alphas will need to identify, limit and exit lines of business that do not offer optimal return or growth opportunities. Instead, they will need to re-focus on the businesses, customers and broker relationships that represent the highest growth potential and align with the insurer’s value proposition.
2. Growth through next generation broker segmentation and partnership
Future Alphas will need to shift towards individual behavior and preference-based business models. They can then use the sophisticated data to create behavior-based marketing and quickly deploy services that meet emerging customer and broker needs.
3. Recasting value propositions
This new wealth of customer and broker insight models will drive the design and implementation of value-added services in the future. Insures will not only need to be experts at customer insight, but they will need to be able to quickly design and deploy pilots, monitor processes, and measure results.
4. Enhancing sales and service: the multi-channel world of tomorrow
Changing customer and broker expectations will require consistent reassessment. The availability of technologies with the potential to change the cost-service equation will continue to change the shape of the achievable performance frontier. As such, future Alphas will need to look at opportunities such as speeding up sales through selective automation and self-service, streamlining the claims process, and enhancing the renewal process to meet the market demands of tomorrow.
5. Other potential operating model shifts
Other aspects of operating models will need to be selectively transformed. From setting and enforcing consistent standards to investing in new technologies to taking advantage of big data analytics, the future alphas will make the most strategic choices for driving operational excellence and profit.
To learn more, download: Chasing the Alpha: How Commercial Lines Insurance Leaders Outperform the Market