Insurers seem to understand that to weather digital disruption, they need to take the initiative by expanding traditional value chains, or even creating new ones. This could be achieved by forging new partnerships, investing in innovative companies or broadening their product offerings to include non-insurance products. Perhaps unsurprisingly, they have made most progress in distribution, with 72 percent of the respondents in our Digital Innovation Survey saying they plan to form new distribution partnerships in the near future, or have already done so.
But many insurers are taking a more far-reaching approach. Sixty-one percent of respondents are planning to offer non-insurance products and services, or have already started doing so. The types of products and services they are exploring include loyalty rewards (66 percent), home services (63 percent), lifestyle-based services (56 percent), motoring needs (53 percent), opening up the supply chain to customers (53 percent), location-based offers and discounts (41 percent) and other financial services (41 percent).