Insurance has been an incredibly successful industry over the last several decades employing over 2 Million, generating a Market Cap greater than $1 Trillion, and landing nearly 50 players in the Fortune 500. But the times they are a changing. Most of the big players are approaching 100 years in business and companies across the insurance value chain from reinsurers to primary insurance companies to distributors are facing increased expectations from their business clients and consumers for faster, more transparent, and a more tailored digitally-enabled experience.
Property & Casualty and, Life & Health insurers are all guilty of less than favorable customer experiences. Redundant data entry on numerous forms, back-and-forth requests for documentation, delays in getting quotes, denial of coverage, unexplained rate increases, and a lack of transparency about the competitiveness of your coverage. Changing expectations of clients and consumers has capital pouring into InsurTech expecting new generations of customers will be willing to try a new value proposition where the experience is more digital and tailored to their specific needs and responsive when it matters most.
“The industry is really old…We’re talking pre-internet, and it shows. The industry’s entire organizational structure was designed for an antiquated, Mad Men era buying experience.”
– Spencer Lazar, General Catalyst (Lemonade)
The disruption in the insurance value chain is having a significant impact on the types of jobs and skills important for the future and is causing executives to ask important questions about how to evolve their operating model and workforce to deliver more value to customers at a lower cost through technologies like robotic process automation, artificial intelligence and blockchain. The industry also has a reputational challenge for new generations of workers with only 4% of millennials (now the largest share of the US workforce) interested in working in the insurance industry according to the Pew Research Center.
We have extensive experience working with insurance companies of all types, sharpening their strategy and choosing the right pathways for growth, improving execution, and reducing costs. We have also helped deliver several business transformations to improve the customer experience through changes to sales, service and claims operating models and the supporting workforce strategies.
At the core of the challenges in the financial services industry is the ability to address the level of digital disruption that is redefining how customers want to engage with their financial services providers — all while meeting greater demands for trust and transparency. The ascent of “challenger banks” (typically without physical locations), digital payments, the individual-investor boom, robo-advisors, and passive investing are transforming how consumers save, exchange, invest and manage their money. This has caused many Financial Services companies to think of themselves more like a technology company than a traditional bank or advisory company as they continually redefine product and channel strategies.
To survive and grow, organizations must create cultures that seek out and embrace new strategies, new technologies, more nimble organization designs and efficient operating models that are intentional around the innovation pathways that will propel them past the competition.
Our depth of experience with financial services has helped our clients assess and prioritize risk, improve product and channel effectiveness, build the infrastructure and environment for innovation, and transform what they think and do so they are better positioned for success.