The insurance industry is feeling the heat. Just a few years ago, everyone’s biggest concern was compliance, market volatility, or low rates. Traditional operating models were set in stone. Insurers were protecting customers over the long-term, often deciding what was good for the insuree without transparency or clarity. Most insurers did not anticipate dramatic changes in customer expectations and behaviors. Others did.
Incumbent insurers – slow, steady, and previously successful – are now under threat from new, flexible players who are breaking the mold. These new players are geared to meet emerging customer expectations with innovative digital experiences powered by super-fast technologies.
New operating models are exploding onto the scene, well financed and often successful. For example, Oscar and Vitality offer preventive healthcare plans or pay-how-you-live insurance. Cuvva allows its customers to get insured on a friend’s car with hourly insurance available from their mobile phone. InsurPeer goes one step further,bringing together individuals under a peer-to-peer insurance system.
These new operating models are not limited to new players.Tokio Marine already provides temporary and context-driven insurance products. Charles Schwab is getting real traction with its combination of robo-advisors and long-term savings products that go beyond the traditional model for life insurance
Download this Opinion Piece to find out our vision for staying ahead of the existing industry’s burning platform and learn:
- What success will look like
- What are the five Target Operating Models
- Where and how do you start?