"Acknowledging that the world and insurance are changing at an unprecedented pace, the first step to defining our future state is recognizing that the business of insurance may be very different ten years from now. This more-open-to-the-future view lets us begin to explore possibilities and strategic watchpoints. It also alerts us to the fact that if we, as an industry, continue to seek only incremental change and do not change our approach to transformation, we will wake up in three to five years to discover that we have fallen behind, have lost our relevance, and missed out on a widening array of opportunities to advance".
Deborah Smallwood is the founder of Strategy Meets Action, an insurance industry consulting firm.
SMA recently published an insightful and actionable report "Claims and Risk Management in the Digital World: A Next Gen Platform" which you can download free here.
The second step is bringing the future-state vision and applying it across all initiatives. This means focusing, not on the traditional approaches (in areas of standalone investment such as core systems modernization, new portals, or business intelligence) but on the transformational “step beyond” tied to the future-state vision. Then inside-out and outside-in views need to be in sharp focus. But at the same time, they must complement each other. Each insurer’s individual transformation journey will draw on both in different orders and along different paths.
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