*Disclaimer: This is a modified version of the article that appeared in EIF's brochure: Change Agents in the New World of Insurance*
I recently attended the European Insurance Forum which brought together industry leaders to discuss the resources needed to deal with the future landscape of insurance and risk. Today, thanks to technology, the insurance industry is changing rapidly with no signs of slowing down. In order to thrive in the new world of insurance, companies are and will be continuing to invest in strategies for effective adoption of new trends and technologies.
This is no easy task for an industry that has been accustomed to tradition, as opposed to innovation, for so many years. So how do you navigate through today’s insurance world that is at the tipping point of massive change? Our goal is to make the journey simple for you.
Embrace the opportunity
Thanks to technology, there appears to be a spotlight on insurance that hasn’t existed before, at least not to this degree. New entrants, with significant valuations, are bringing attention and capital to our world. But it can be hard to vision how businesses such as NerdWallet, Policy Genius and Lemonade will find their way to round two, or even better, profitability. We’ve also seen an influx of buzzwords including disruption, peer-to-peer, big data, millennials and fintech that can be a challenge to keep up with and understand what they mean to our industry.
So how can we make sense of it all? To embrace the changes that will inevitably come, it’s not enough to just acknowledge these newcomers and buzzwords and put them on the back burner. Instead, we need to build an understanding of how they affect our everyday business and industry as a whole.
Viewing these changes as opportunities instead of barriers will make your transition into the new world of insurance more seamless.
Invest in educational resources
In addition to the VC and PE firms finding innovative opportunities to invest in the new insurance world, we’re also seeing companies within the industry making significant investments. Traditional insurance and reinsurance companies including The Allianz Group, MetLife and Liberty Mutual are opening innovation labs, to not only help understand how they fit into this new world but also, how they can shape it.
While opening an innovation lab isn’t an option for everyone, there are other resources available to help you and your organization make the transition. It can be as simple as reading blogs, attending industry conferences or participating in workshops. Engaging in any of these activities have a smaller monetary investment and time commitment but can still make a huge difference in staying educated. As innovators ourselves, we strive to identify and educate the industry on new ideas, technologies and capabilities that are emerging.
One way we’re educating the industry is by introducing the insurance and reinsurance world to social media. In an age where the digital space is home to key connections and communication, we want insurance professionals to understand how they can leverage social platforms for success in their careers.
Play by the rules
Change will happen to the current insurance model, it’s inevitable. However, that disruption must adhere to the traditional regulatory and compliance regime. Simply ask Parker Conrad, the now ex-CEO of Zenefits. Technology certainly introduces insurance to innovative solutions, but at the end of the day it is a heavily regulated industry. Therefore, change will come, but success will only come to those that figure out how to do so within the rules of our industry. If you are not willing to learn and make changes the right way, then really what’s the point?
Keep it personal
The one constant when moving from the traditional to the new world of insurance is the importance of personal relationships. Millennials are living proof. While they are more likely to buy insurance via the Apple Store than their parents’ insurance agent, it is for the same reason. They have a personal connection, a trusted perception, of the Apple Store. While this may not seem personal to you, it’s the perception that millennials have developed growing up with technology. Regardless of your audience, determine their expectations when it comes to building personal relationships and tailor your offerings to these needs.
With the recent launch of The LOGiQ3 Group, each one of our companies' goal is to make your life simple. We know change is upon our industry but we are actively finding ways to help you navigate through the complexities that come with change. Whether it’s facilitating your understanding of industry changes, developing a strategic plan to implement new technology or ensuring compliant behavior – our priority is your success.