Time to Buckle Up: Traditional Carriers Better Get Ready for the Start-up Ride!May 10, 2017 | Rob Guarino
I recently read an article published by Deloitte that talked about how “Nimble” will be the new normal in 2017 as insurance companies confront a marketplace that is changing more drastically than ever before. Insurers are coping with longer-term, game-changing trends like the connected home and connected car. For some, that probably seems like a very scary scenario. For others, this presents a wide array of opportunities to grow and expand in ways never thought possible. All you must do is look at the number startups entering the insurance arena over the last several years to see that the change is real and the opportunity to capitalize on the change is huge.
So why do start-ups have the advantage? Here are the top 3 reasons why.
- They have NO HISTORY – They have no customer relationships to maintain and no cultural ideology of “this is how we’ve been successful for the past numbers of years or ”this is how we’ve always done things.”
- They are nimble – Start-ups create opportunity because they don’t have history to weigh them down. They can change strategy quickly because there is no historical reference point of success.
- They are leading the digital transformation – By 2025, the millennial generation (those born between 1981-1996) will make up 75% of the global workforce. 85% of them prefer interacting online than in person. Start-ups are adapting to the shift to a digital world more readily than traditional carriers providing the tools needed for a digital customer experience.
All this to say, customers today have a much more powerful voice than ever before given all the various modes of communication available. If traditional carriers want to stay in the game, they will need to adopt technology at a much faster rate. The next generation of insurance workers will expect that all these technologically advanced tools be available to do their job. Add all of this together and quickly see that the issue for many carriers is not whether they will change, but rather how fast can they change. These questions are keeping insurance executives up at night and finding the right answer is no longer optional, it is essential to survival.