The current competitive landscape for insurers is fragmented, with nontraditional players such as technology companies, banks, asset managers and credit card companies seeking to create a close connection and trust with their consumers by offering insurance products for peace of mind. Instead of a threat, this idea of integrating service offerings, or ecosystems, is an opportunity for you to expand vertically along the value chain — through partnerships, joint ventures or vertical integration.2
Travel plans are back on calendars, with people gearing up with necessary items for vacations. But as consumers are faced with ongoing potential risk, top companies across other industries such as automotive, airlines, retailers and others are looking to enhance consumer relationships by embedding more insurance offerings in multiple ways.
Insurance companies need to adopt growth strategies that emphasize “co-opetition,” or competing and collaborating at the same time to build ecosystems and deal with convergence with other sectors.3 Carriers should partner with or acquire the leading insurtechs, focusing on technological innovations that are created and implemented to improve the efficiency of the insurance industry.
Insurtechs bring a strong solution to the industry’s lack of speed, which has become a significant problem in keeping up with consumer demands and incentives. These companies promise policy issuance or claims handling in seconds or minutes, which is exactly what consumers are looking for.
Carriers should partner with or acquire the leading insurtechs, focusing on technological innovations that improve the efficiency of the insurance industry.
The expanding digital ecosystem has been central to this growth by extending opportunities in coverage for home, health, travel and mobility. As a result, insurance industry players are actively partnering with insurtechs to take advantage of these mutually beneficial opportunities. This will drive CX for these other industries, backed by the power and trust of the insurance company that will ultimately provide products and services to consumers as they embark on that special trip, purchase furniture or drive a new car.
This new insurance landscape, born from coopetition, internal incubators and vertical integration through mergers and acquisitions, is a reminder that your focus on technology should be a top priority throughout your organization. Consumers have changed the way they purchase insurance. They’ve also impacted the way you need to connect with policyholders, which now includes online chat, mobile apps and IoT connected to the household.
Think beyond setting rates, collecting and investing premiums and paying claims. Capitalize on the opportunity to connect and support the devices in consumers’ homes, cars or even wearables such as body-mounted sensors or fitness trackers. This will create a stronger connection with consumers and enhance your brand connection with them.
2 - McKinsey and Company, “Product innovation in health and life insurance with Marion Hammerli,” mckinsey.com.
3 - EY, “Global insurance outlook report,” ey.com.