Disruption is Making its Way to the Insurance Industry
Across industries, disruptions are shifting existing business models from product-focused to consumer-focused and we’re starting to see the impact on the insurance industry.
Fueled by societal and demographic changes accompanied by technological developments, the accessibility and leveraging of “big data” is becoming more prominent from existing competitors and creating opportunities for new and more innovative participants to enter the industry. The Internet of Things, blockchain infrastructure, and mobile applications are generating additional streams of data accessible to external parties that were once exclusive to insurance companies.
Everyday activities are now becoming streamlined and are not only shifting the way individuals interact with peers, but also how consumers evaluate purchases and conduct business.
COMPARED TO PRIOR PERIODS, DATA HAS NEVER BEEN MORE ACCESSIBLE THAN IT IS RIGHT NOW.
Moreover, these capabilities are expanding. With an increase of user-friendly services, consumer expectations are continuing to rise as well as their demand for personalized products. The one-size fits all model is becoming a thing of the past. For the most part, the insurance industry over the years has experienced little change to its fundamental operations; however, it is unlikely that it will be able to continue with this “same old” mentality that historically has stifled innovation.
WITH CHANGE COMES OPPORTUNITY.
As the consumer changes its habits, new risks will emerge. As InsurTech companies are either used as third parties or acquisition targets to enhance insurance companies’ operational capabilities and shift product offerings to more customer-focused, it is a logical progression that innovation makes its way to distribution. Ease of use, transparency, and a positive experience could potentially become standard terms used by consumers purchasing insurance; leaving the unanswered question, what is your firm doing to remain relevant in the evolving marketplace?
MarshBerry 360 seminars enable insurance distribution professionals to understand the various strategies to help lead their firm to growth and profitability, and to help as they work to maximize shareholder value.