Life insurance companies have every good reason to examine the viability of their current models—every market dynamic from new digital-fueled consumer behaviors to blurring of industry lines to increasing connectedness of devices. Life insurers must decide soon whether to stick with the status quo or become something more.
The “something more” is intriguing, and becoming critical. Several Accenture studies suggest that future growth opportunities will increasingly emerge outside life insurers’ traditional business. The opportunities will require disruptive new approaches and collaborative models.
So, what might life insurers become? A compelling strategy is to take advantage of digital and the Industrial Internet of Things (IoT) to be a trusted risk management advisor. By broadening their service scope outside traditional boundaries, life insurers can become the advice-driven hub of a digital ecosystem that connects other providers to engage in customers’ everyday lives before, during and after a policy transaction.
Aside from the health-related example in my last blog, imagine life carriers offering preferential retirement housing and services to their aging policyholders. Or, what if services were automatically personalized and offered to life policyholders at relevant points along their customer lifecycle—such as college savings or estate planning—to help them manage their lives? Yes, adopting such models means a redesign of organizations, partnerships and operations. However, it also means continuing customer relevancy that opens up new, sustainable revenue streams and markets.
I will share in my next blog ways that life insurers can capitalize on big data in the IoT age.