Insurers: Do This to Stay Competitive

(Original post in Spanish)

The insurance company business model has been remarkably resilient to change. Thanks to a highly regulated market and consumers more loyal than they are now, things were calm for insurers. But the situation has changed, and digital players are multiplying among us. Digital solutions exist today that directly impact the insurance business, causing competition to intensify as traditional industry boundaries blur and players in adjacent markets shake up the insurance value chain to claim your spot.

Faced with this, there is no reason to get busy worrying—just get busy. Traditional insurers remain positioned to thrive in the digital age, as most have strong and reliable brands, industry experience and access to the customer through proprietary channels. But that is not enough.

How, then, should they move from here on out?

Fast, but accurately. This is to match the movements of digital insurers, who take real-time data as a helm and move to the rhythm of technological advances and customer needs.

Treating the matter in steps, traditional insurance companies should establish a clear vision of the future, combining their market knowledge with the ability to experiment with new strategies. For that, it’s necessary to implement agile methodologies, as they make it possible to reduce risks and create opportunities to mold strategic objectives into new realities. Companies that achieve this flexibility while maintaining a clear vision can be quicker and more decisive in implementing their digital agenda.

It’s also essential to incorporate cutting-edge technological solutions, making available real-time data to for more informed decisions. A recent study by consulting firm McKinsey found that 44% of top performers collect and analyze customer data weekly or more often to identify new opportunities, compared to 16% of lagging organizations who tend to analyze customer data on a monthly basis. Furthermore, with the appropriate implementations, it’s possible to:

• anticipate future scenarios
• automate repetitive tasks to reduce human error
• reach each client with a personalized proposal
• innovate to offer new products and reduce costs

If traditional insurers develop a customer-centric organizational culture, implement the appropriate technological solutions and work quickly but with precision, the desire to remain competitive and proactive in in a market shifting away from what they’re used to can become a reality.