At Accenture, our study on the US personal lines market uncovered two key findings:

  1. That meaningful and profitable growth is possible.
  2. That adopting either of two business models can help insurers achieve that growth.

To wrap up this chart of the week series, I’ll highlight each of these business models, and how they can help insurers achieve high performance.

Two business models for high performance in insurance

Online direct model

The key premise of this model is to make insurance easy. The online direct model is appealing for its strong growth potential and low overhead needs, but it requires insurers to be unwaveringly efficient. It’s also best suited for simple products, and long-term profitability depends on effective cross- and up-selling.

Integrated agent model

This is the service model, where customers feel like insurers understand them and their needs. It’s especially appropriate for more complicated types of insurance, but doing this effectively means having robust multi-channel capabilities. Achieving success with this model also depends on dismantling internal barriers, and may require changes to internal structure, governance and culture.

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