Past performance is no guarantee of future success. With the economic downturn behind us, those insurers who emerged intact may find the market to be a very different place. From changes in consumer behavior to new (and disruptive) technologies, it isn’t business as usual. In fact, Accenture research shows that, in some cases, an entirely new business model is necessary.
The High-Performance Insurer of the Future
Accenture analyzed more than 70 leading carriers to assess the likely impact on insurers of changing conditions. Our intent was to discover what insurers must do to achieve high performance in the coming years, given the current and changing environment. Four areas of focus emerged:
- Technology innovation.
- Increased risk and regulation.
- Shifts in consumer behavior.
- Changes in the market.
Six Business Models
It’s one thing to understand current market trends and projects for the future, but carriers must also be positioned and prepared to adapt to those trends. In order to grow profitably in this environment, insurers must determine the business model that best encompasses the organization’s strategic approach and addresses target markets, geographies and segments.
Accenture looked at six business models that can enable high performance:
- Industrializers 2.0 take strong positions in mature markets by optimizing and industrializing.
- Value pickers capitalize on a strong position in a mature market to enter high-growth emerging markets with large returns and quick payback.
- Global conquerors use a complex business model to cover multiple geographies and engage in multiple lines of business.
- Emerging titans develop business models that exploit growth opportunities in emerging home markets.
- Risk masters operate internationally with high degrees of specialization, centralization and standardization.
- Brokers 2.0 use electronic channels extensively to service customers and smaller brokers.
Learn more with The Point, which offers an executive summary and podcast of The High Performance Insurer of the Future study.
Download the full report here.