The global economic recession that has followed the COVID-19 pandemic will challenge and disrupt the insurance industry for the foreseeable future. We can not continue working as before. We must adopt new technologies and ways of doing things and use our lessons from previous recessions.
However, the patterns we can observe from previous recessions seem to be time-tested and consistent. It gives insurers entering this recession an additional advantage. By extrapolating from what has worked in the past, insurers can implement customized strategies that allow them to surpass. While the future may seem uncertain and frightening, it is possible to emerge stronger from the recession with smart strategic games.
The challenge facing insurers
In order to adapt and thrive, insurers must make major, lasting changes. These include:
Structural cost reductions
This requires a fundamental change in how the work is done. Insurers can automate manual tasks or restructure workflows, breathe new efficiencies and life into their teams.
Strategic reinvestment of savings
Once insurers have taken care of their existing processes, there is also an opportunity to invest for innovation and growth (eg new distribution channels and partnerships.) New technologies and innovative investments can help minimize business impact from an economic downturn and drive future growth.
Partnership Helps Insurers Adapt Faster
Change can be scary, but you do not have to do it alone. Insurers have access to two important external influences in their recovery from the recession: the strategic efforts of consultants such as Accenture and the innovation opportunities that ecosystem partners bring.
Take the case of an Italian finance company eager to adapt to the rapidly changing market landscape in the wake of the COVID-1
The ability to analyze and strategically plan for the future enabled our client to plan their strategic steps over the next 1-2 years. . Of the 25+ recommendations for responding to the changing landscape, four prioritized them, including focusing on its motor business.
In another collaboration with Zurich, we worked to drive digital transformation with initiatives aimed at developing new ecosystems in the mobility, retail and tool sectors, creating new ecosystems adapted to new consumption habits. The goal is to increase digital operations in the Zurich Alliances area and achieve a turnover of EUR 100 million over the next three years. Zurich has various digital solutions and service platforms, unique in the insurance market such as Zurich Klinc. The collaboration with Accenture will increase the connection between the company and the final distributor. Zurich and Accenture have a long-standing collaboration on the company's digital transformation with successful initiatives, such as the launch of Zurich Klinc, the range of on-demand insurance for digital devices that has enabled the company to attract millennial audiences.
The key to recession is to use every challenge as an opportunity to reinvent. With a focus on partnerships and innovative games, it is possible for insurers to be more competitive than before.
Contact me to discuss how to collaborate and build your company's recession.
Read the whole insurance: Strategic games for recovery from the recession. Report.