Most insurers recognize that success requires more than just maintaining the status quo. While they survived the latest economic downturn – as well as a period of major catastrophes — market volatility still remains a real threat for insurers.Increased customer churn, the changing regulatory environment and rising competition brought on by new market entrants all signal the need to seek new opportunities for profitable, long-term growth.
Smart product innovation offers insurers a way to deal with unstable external conditions, providing a solid foundation for this growth. Insurers that take advantage of advanced analytics capabilities along with new types of data can quickly identify and address marketplace opportunities. These may take the form of unmet needs, or new approaches to existing products or services, or serving a market segment (such as the sharing economy) that was once considered too risky due to a lack of data. The ability to act quickly on this analytics-enabled intelligence creates a more stable base from which to operate.