{"id":12607,"date":"2017-06-27T10:52:44","date_gmt":"2017-06-27T15:52:44","guid":{"rendered":"https:\/\/blog.planview.com\/?p=12607"},"modified":"2020-03-02T10:49:51","modified_gmt":"2020-03-02T16:49:51","slug":"trends-disrupting-the-insurance-industry-part-1","status":"publish","type":"post","link":"https:\/\/blog.planview.com\/trends-disrupting-the-insurance-industry-part-1\/","title":{"rendered":"Trends Disrupting the Insurance Industry, Part 1"},"content":{"rendered":"

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If there\u2019s a word to define the insurance industry today, it\u2019s 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.<\/p>\n

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 \u2013 both for insurers and the regulators that govern them \u2013 making compliance an evolving challenge.<\/p>\n

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 \u2013 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 \u2013 and they are willing to shop around to find it.<\/p>\n

To remain competitive in a volatile market, insurers need to rethink their business models to optimize for delivering customer value.<\/p>\n

In this series of posts, we\u2019ll describe the trends disrupting the insurance industry \u2013 and how Lean can help incumbents survive and thrive amidst the disruption.<\/p>\n

Trend #1: Digital Age of Information<\/h3>\n

As technology has changed the way we think, shop, learn, research, and connect, it has also changed the way we buy insurance. Customers today have more information available to them, from more sources, than ever before.<\/p>\n

Due to the sheer volume of information available, customers have high expectations and far less loyalty, which has a direct impact on the bottom line: Churn rates are rising \u2013 up 13% in the last few years.\u00b9<\/p>\n

Modern customers are looking for a combination of value, service excellence, and data protection, customized to meet their unique needs. The traditional one-size-fits-all approach to marketing and communications, which has served the industry for decades, comes across as tone-deaf and disingenuous to a generation that has been raised in a world of personalized experiences.<\/p>\n

To these customers, price is less important than value, integrity, and a personal touch. Lynn Kesterson-Townes, worldwide commerce marketing leader for IBM, says this creates a need for marketing and communications functions in insurers to \u201c\u2026be more nimble, more innovative, and better able to engage with their customers and help their entire ecosystem along as well,\u201d she said.\u00b9<\/p>\n

In other words \u2013 insurers need to be\u00a0agile<\/a>: \u201cWhether you\u2019re responding to a customer in real time or anticipating a need that they didn\u2019t even know they had, today\u2019s insurance marketing and communications functions must exceed expectations to give their companies a competitive edge. It\u2019s not just about speed. It\u2019s about the experience. Every interaction is a moment of truth and moments matter. It\u2019s about delivering relevant experiences at the right time and the right place,\u201d she said.\u00b9<\/p>\n

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