Each of Michael Porter’s Five Forces, originally described in a 1979 Harvard Business Review article, has specific application for the insurance industry today.
The combination of operations automation, insights from AI, human expertise augmentation, and advanced ecosystems will result in winning scenarios for insurers, claims professionals, and claimants.
With the pace of change InsurTech has driven—and which COVID-19 has accelerated—the competitive pressure for insurers to change has grown proportionately more intense.
During the busiest time of the year for group carriers, AI can be leveraged to streamline quoting, optimize resources, automate manual tasks and eliminate duplication of effort before and during enrollment.
Recent developments better support the continuous evolution of applications rather than the ‘boom and bust’ replacement life cycle that has dominated IT for the last 30 years.
Insurers who are prepared and who manage their IT investments with a business mindset of ecosystem integration will be prepared to convert these challenging days into a growth opportunity.
Insurers can allay their fears about investing in new technology by making compliance a priority, getting all stakeholders aligned around digital transformation, ensuring the technology scales, and working around the constraints of legacy back-end systems.
Ecosystems might be the single greatest opportunity for insurers to differentiate themselves in a period of rapid digital transformation, but only 5 percent of insurers can be considered ecosystem masters.
The discussion is frequently dependent on product segments, but over time, value will be universal regardless of product complexity, albeit for different reasons.
State-of-the-art technology, data formats and service partner providers are now at hand to help put reinsurers in the catbird seat.