Karen Furtado, a Partner at Strategy Meets Action, discusses “New Norms” and “Game Changers,” and how insurers can take advantage of emerging technologies.
The “New Norms” happening in insurance are all around the tide of change. Ms. Furtado looks at how the pace of change is affecting insurers and the risks they cover, their internal operations, new technologies and tools. She suggests there are four “game changers affecting insurance: emerging technologies and data, customer experience, digital transformation, and the amount of capital coming into the industry (over $2 Billion; over 500 start-ups).
Ms. Furtado says insurers need to consider how they are interacting with the new entrants. If 90 percent of start-ups fail, “I would not want to be in the way for the ones that succeed, because they are the ones that will change and disrupt out industry.”
Game changers will allow insurers to do their jobs differently. She believes they will enable companies to deal with internal issues like an aging workforce. They can offer digitized “Smart” classes and apprenticeship programs. Externally, companies need to use technology to connect with clients/customers. The challenge is determining how to change your company when it is bound by tradition.
Ms. Furtado says companies need to build “bridges to the future.” Determine which emerging technologies will impact your business. How can you fix problems in core policy and claims systems that do not support you going forward? How do you become more customer centric? How will you connect to the customer in a digital world; what are your bridges between today and tomorrow? Pick a strategy. Start small. Gain some successes. But start or you will never be that “next gen insurer.”