As insurance revenue pools come under threat by digital disruption, new competitors and changes in customer expectations, all is not lost. In other industries where similar shifts occurred, businesses succeeded by expanding their product mix and finding new ways to connect with and appeal to customers. This week’s Insurance Chart of the Week looks at how insurers can expand to protect their market share and revenue sources.
How to expand in a digitally connected future
There are a few ways that insurers can move on the protection game board:
- Digital/connectedness. Moving along the horizontal axis, insurers can continually increase their connectedness. Technology innovations, such as telematics, the Internet of Things and other contextual offerings can help insurers offer increasingly connected solutions—either on their own, or as part of an integrated solution.
- Expanded protection services. Moving along the vertical axis, insurers can transition from core protection products to embedded, on-demand protection to value-added and lifestyle services. In a broader context, this is about making insurance less transactional and more of a lifestyle product—one that helps customer prevent risks in the first place and enhance their day-to-day lives.
- Digital transformation. Combining the two axes, insurers can also move diagonally on the protection game board to expand and diversify their core insurance model, and open up alternative revenue pools. This route offers substantial potential for carriers to protect and grow their current market share—however, it will require effective partnerships with other companies, especially as insurers move to provide broader lifestyle services through a digitally connected model.
The most successful insurers will be those that balance near-term initiatives with longer-term strategic investment. Bold moves are needed to compete effectively in tomorrow’s insurance industry. Are you ready?
- Read The new playing field, part 1: High stakes | Insurance Chart of the Week.
- Register to download Stand on the Sidelines, or Boost Competitiveness? How to make bold moves on the new insurance playing field (PDF).
- View the archive of Insurance Chart of the Week posts and videos.
- Email me to discuss how Accenture can help insurers achieve digital transformation and position for success—today and tomorrow.