A $375 billion growth opportunity is emerging in the insurance industry. Customer experience is at the center of this opportunity. Insurers that respond and succeed will be what we call 'living businesses.'
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Insurance as a Living Business
Explosive growth – a $375 bn opportunity for hyper-relevant, customer-centric insurers
Unwaveringly customer-centric insurance companies that adopt fluid models and flexible platforms and talent are what we call "living businesses." These insurers understand their customers, and adapt and innovate constantly–at speed and scale–to remain hyper-relevant. Their vitality and responsiveness to their environment enable them to evolve perpetually, just as living organisms do.
The opportunity comprises entirely new revenue sources; improved, profitable penetration of hard-to-reach segments; and the expected impact of shifts in market-share. It will disproportionately benefit insurers that become living businesses, at the expense of their less responsive and competitive peers–those that choose to wait and see how the industry evolves.
GROWTH POTENTIAL OF THE INDUSTRY OVER THE NEXT FIVE YEARS
$375 bn
Potential new revenue
worldwide, by 2022
$177 bn
Revenue from new streams
and enhanced operations
$198 bn
Value of the anticipated
market-share shift
New revenue growth opportunities by line of
business
New revenue growth opportunities by
region
INTERACTIVE CALCULATOR
Use our interactive calculator to estimate the size of the opportunity available to your organization.
WHAT WILL IT TAKE TO PROFIT FROM THIS OPPORTUNITY?
Not all carriers will be able to take advantage of these emerging opportunities. From their culture and leadership to their corporate structure, talent pools and IT architecture, many insurance companies lack the customer-centricity, flexibility and vitality to respond effectively.
Living businesses, however, regard the customer experience as their focal point, and hyper-relevance as the acid test of all they do. Relatively simple organizations, they understand how risk is evolving in a digital era, and how the roles of customers and ecosystems are changing. And they continuously hone their ability to create, recognize and seize new opportunities.
OUR RESEARCH SHOWS THAT TO TRANSFORM INTO A LIVING BUSINESS IT’S NECESSARY TO EXCEL IN FIVE KEY AREAS
Targeting
Develop the desired value roadmap to drive a balanced, value-focused growth strategy
Designing
Create living services that drive remarkable experiences
Building & Iterating
Set up intelligent platforms for innovative services focused on outcomes
Connecting
Join diverse ecosystems to deliver compelling customer experiences
Sustaining
Nurture a fluid organization with a flexible insurance workforce that puts the customer experience front and center
READ MORE ABOUT BECOMING A LIVING BUSINESS
Our detailed report delves into the new revenue opportunities that digital disruption is uncovering for customer-centric life, commercial and personal lines P&C insurance companies.
It also explores the winning traits of a living business–hyper-relevance, agility, vitality and innovativeness–and spells out the steps carriers must consider to become winners in an increasingly unpredictable marketplace.
LEARN MORE ABOUT OUR AUTHORS
Accenture’s consulting expertise, together with our deep understanding of the insurance industry and an unmatched delivery and operational capability, position us ideally to help you evolve the customer experience and become a living business.
To find out how to get started, contact one of the authors to set up a meeting.
Piercarlo Gera
Senior Managing Director, Global Financial Services Distribution & Marketing
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Erik Sandquist
Managing Director, Distribution & Marketing
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Alex Secchi
Offering Development Lead, Distribution & Marketing
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Jim Bramblet
Managing Director, Insurance
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