Other parts of this series:
By offering customer services that are frictionless, hyper-personalized and enjoyable, digital disruptors like Google, Netflix, Uber and Tesla have set high benchmarks for organizations in every consumer-facing sector. Insurance carriers are, as a result, under growing pressure to recast their relationships with their customers to keep pace with evolving consumer expectations.
Over this series of blog posts, I’ll be exploring why insurers are increasingly vulnerable to disruption as well as a strategic approach they can use to fend off digital competitors. Those that get this approach right have an opportunity to not only defend their legacy revenues, but also to create new revenue streams from data monetization and other services beyond insurance.
To win in this changing market, insurers must emulate their digital competitors and leverage the Internet of Things, real-time analytics, artificial intelligence and other maturing technologies to build more delightful customer experiences. These technologies offer opportunities to provide customers with personalized, on-demand services woven into their everyday lives—experiences more like Uber or Amazon than like traditional insurance.
By transforming itself into an Everyday Insurer, a carrier could generate more than enough new revenue to compensate for revenues lost because of new competition and disruptive technology. In addition to revenue growth, insurers that embark on this journey will be better able to strengthen customer loyalty, reduce customer acquisition costs, and increase profitability than their peers.
In my next post, I’ll look at the vulnerabilities in the traditional insurance business model that put up to 40 percent of some carriers’ risk protection revenues at risk of disruption by 2020.
Read The Everyday Insurer to find out more