Standing out in a competitive, dynamic market
Six differentiating characteristics will help to set insurance firms apart and enable them to succeed in the future, according to the World InsurTech Report (WITR) 2018.
Differentiating Characteristics of Winning Insurers in the Future
- Digital Culture
- Focused Investment Strategy
- Strong Ecosystem Positioning
- Agility
- Industry Reconfiguration and Business Model Innovation
- Digital & Lean Organisation
Collaboration is the way forward
Collaborating with InsurTechs can help established insurers shore up areas of weakness and acquire new capabilities. One or more partnerships can be crucial to developing the differentiating characteristics required for long-term success.
With incumbent-InsurTech partnerships enabling access to each others’ complementary strengths, alliances will strengthen all players and grow the insurance ecosystem as a whole.
Agility requires partners that share an iterative development model rather than the traditional waterfall approach. The Allianz and 360Globalnet global technology partnership is an example.
Going forward, how traditional insurers and InsurTech firms leverage each other’s strengths to grow the insurance market and ecosystem will define and differentiate the leading the insurance and InsurTech firms from the rest.
Insurance industry market dynamics are in flux, with new ecosystem models coming into play. Heightened customer expectations and rapid technological advancements are among the catalysts spurring an industrywide shift. New players, such as BigTechs and manufacturers, are entering the industry, too, which means potential competition for incumbents. In fact, more than half of insurers say they are feeling the heat from new entrants such as Amazon, Alibaba, and Alphabet (Google), according to a survey conducted as part of the World InsurTech Report (WITR) 2018. Undeniably, the insurance landscape is evolving, and insurers will need to prioritize certain essential attributes to differentiate themselves and succeed over the long haul.
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