Other parts of this series:
If brokers want to remain relevant in the changing insurance ecosystem, they’ll need to change with it. In the last article in this series, we covered how brokers are being disintermediated by insurers offering direct-to-customer services. Here, we’ll delve into what brokers can do to increase their relevance and improve the customer experience.
In Accenture Strategy’s 2016 report on the broker of the future, 84 percent of insurance executives agreed traditional organizations must evolve their business before they’re disrupted. Some businesses, such as Vanguard Group, are already reaping the rewards from disrupting early instead of being disrupted themselves. Vanguard’s “robo-human” money management service has attracted more than $7 billion in new assets since its launch in 2015.
Platform business models can help brokers protect and defend their core business while also launching new, value-creating strategies. Eighty-three percent of insurance executives expect platform business models to become part of their growth strategy over the next three years. Platforms allow insurers to customize their offerings at scale and add value through efficiency.
Insurers won’t be pursuing siloed platform strategies. Eighty-one percent of insurance executives say platform business models will bring organizations together in the digital economy. A great example in banking is the launch of Goldman Sachs’s Marquee, an open architecture platform that allows the bank’s institutional customers to share its intellectual capital, market analyses and trade execution. Brokers can buy or partner to create platforms to meet the needs and expectations of the changing insurance market.
Brokers that embrace digital transformation and potential collaborations will be better positioned in a changing insurance ecosystem that requires flexibility and innovation. Those that start disrupting sooner (before they’re disrupted) could turn current threats into future opportunities.