Compete to Win: How To Make Bold Moves on the New Insurance Playing Field

Compete to win

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How To Make Bold Moveson the New InsurancePlaying Field

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Game-Changing Trends are Reshaping Insurers’ Business Models

Disruption– Changes in consumer behavior

& expectations– Technological innovations– Data explosion

…is transforming insurance– Shrinking profit pools– New risks & changing risk curves– Hybrid products & services– Shifting competitor landscape

Copyright © 2015 Accenture All rights reserved.

Substantial erosion of traditional insurance business – Challenging to maintain revenues, margins

Failing to respond to disruption– Missing new opportunities

Stakes are High

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3-year market-share gain by new competitors from outside– 44% of insurers expect a 2% - 5% gain– 10% of insurers expect a 5% -10% gain

Substantial new premium income for carriers fromdigital initiatives, connected products

Many Carriers Expect Market Shifts

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Source: Accenture Digital Innovation Survey 2014


Value at Stake

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Digital Expected to Profoundly Affect the Insurance Value Chain

Carriers that foresee a major impact in 5 years

Those whose digital strategy spans the value chain

Those whose digital investments are ‘exploratory’



How to position yourself for success in a digital future: – Bolster your defense– Get on the offense – Expand your team

Few Insurers Have a Game Plan to Protect & Capture Value

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1. Move to integrated, flexible transaction systems – Transition to cloud

2. Digitize front- and back-office functions– Improve the customer experience – Enhance operational efficiency

3. Move to integrated, flexible transaction systems

4. Set data structure & operating model to capture insights

from expanding data sources

Bolster Your Defense

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1. Review your value proposition – Is it different from those of other players?

2. Find new opportunities in emerging risks– Cyber threats – Connected homes, cars

3. Explore new technology to expand offerings on their ownor as integrated systems– Telematics– Contextual, usage-based technology

4. Capitalize on personal data consumers provide in exchange for:– Lower premiums– Personalized products, services

Get on the Offense

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Get on the Offense: Protection Board Game

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Expand Your Team

1. Consider playing in an ecosystem – Partner with others to meet more of customers’ needs – Define a clear, differentiated role

2. Choose your position & decide how to extract value from it– Retroactive loss-compensator or proactive protection-provider?– Manufacturing utility or customer-focused distributor?– Provide a platform for others to leverage & extend, or leverage

and integrate others’ platforms? – Focus on design & integration of customer solutions? – White-label or brand your offerings?


Digital frontrunners that believe establishing new partnerships is important

Insurers that have entered a distribution partnership

Insurers that offer non-insurance products/servicesinternally or through an ecosystem partner

Expand Your Team

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Make the right moves: – Combine defensive & offensive plays – Balance near-term execution

& longer-term strategic investment– Review breadth of products

& services– Position within an ecosystem – Develop differentiating capabilities

Multiplier effect of these factors

will fundamentally change

your business model

Compete to Win

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Compete to Win: How To Make Bold Moves on the New Insurance Playing Field

Business

Transcript of Compete to Win: How To Make Bold Moves on the New Insurance Playing Field