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Taking the “I” out of insurance distribution

Are you partnering fast enough?

Overview

New entrants—more customer-centric and digitally sophisticated than most established carriers—are transforming the way insurance is bought and sold.

Their scalable, digital platforms, augmented by analytics, threaten traditional distribution model. And at the core of the new operating models, powerful multi-industry partnerships are redefining the insurance distribution ecosystem. Established carriers urgently need to form similar partnerships. But leading players are already inking the best deals, leaving the laggards with fewer options. Gaining a first-mover advantage starts by understanding the new entrants’ true intentions.

DOWNLOAD TAKING THE “I” OUT OF INSURANCE DISTRIBUTION: ARE YOU PARTNERING FAST ENOUGH? [PDF]

Key Findings

They don’t want it all—but they are taking more and more.

The lucrative distribution portion of the insurance value chain accounts for more than 70 percent of the over US$2 billion that fintech companies and startups have invested in the industry over the past five years.

New entrants promise a better customer experience, delivered via digital channels and convenient, point-of-purchase touchpoints.

Although 59 percent of established carriers are prioritizing a more customer-centric distribution model and 48 percent are leveraging data and analytics to improve service, just 43 percent have acquired startups or innovative competitors, and few are replicating the strategic, mutually beneficial partnerships that the new entrants have formed.

Recommendations

Established carriers need to develop more customer-centric business and operating models, execute multiple models simultaneously, and integrate the lessons learned about customer centricity from new partners across the enterprise.

  • Pick your spots in alignment with your overall market approach.

  • Rethink product design, developing capabilities that enable faster product deployment, tailoring to specific partner value propositions and leveraging analytics at a granular level.

  • Develop a supporting digital strategy that aligns to customer expectations, business vision and IT platforms.

  • Build cost-effective and flexible back- and middle-office operations.

  • Define a win-win partnership model.


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