If there’s a word to define the insurance industry today, it’s disruption. Tech-enabled startups are entering the market unburdened by legacy systems or mindsets, and challenging even the largest insurance companies with innovative strategies, products, processes, and customer experiences.
Much like what the financial world has experienced in recent years, new regulations are emerging to govern shifts in the market. The rapid emergence and convergence of new technologies is constantly changing the rules of the game - both for insurers and the regulators that govern them - making compliance an evolving challenge.
In addition to these external factors, a disruptive new type of customer is entering the marketplace: The modern consumer is tech-savvy, informed, and demanding. They want an omni-channel experience and a broader set of solutions beyond insurance - to enhance their life, not just protect against liability. They expect a seamless harmonization of digital and physical touchpoints, just as they experience in their other personal and professional contexts. These customers are looking for value - and they are willing to shop around to find it.
To remain competitive in a volatile market, insurers need to rethink their business models to optimize for delivering customer value.
In this series of posts, we’ll describe the trends disrupting the insurance industry - and how Lean can help incumbents survive and thrive amidst the disruption.