"Those were the best times, those were the worst times."
The introduction from Charles Dickens' "A Tale of Two Cities" may be an appropriate description of today's real estate insurance landscape. While there are many opportunities, insurance companies face a number of challenges – some often unforeseen.
What do they face?
- Weather-related loss incidents increase in both frequency and severity due to changing global climatic conditions that sparkle difficult to contain forest fires and significant rain / storms / floods.
- COVID-19 flashed a bright light on coverage gaps and the need for new, more innovative and flexible insurance offerings.
- Cyber security threats have become commonplace ̵
- Insurers have been forced to raise annual premiums – leading personal and commercial policyholders expect excellent service in addition to coverage.
These challenges can be translated into the worst times for companies. unwilling or unprepared to adapt their business and business models to suit today's rapid business dynamics. Conversely, these may be the best times for innovatively minded carriers who are ready to embrace change and the opportunities with it enthusiastically.
The reference to innovative thinking is not just about new product development or the introduction of new technology. Instead, it is about identifying gaps in existing business processes, improving efficiency and effectiveness, identifying gaps in customer risk needs and expectations, and simplifying insurance operations for the benefit of policyholders and insurers.
Inventive Insurance focus the outside into the customer – their needs, expectations and experience. They include an ecosystem of partners that provide new reach, value-added services and innovative opportunities. They prioritize unlocking the real potential of data and embracing open architecture to work seamlessly with ecosystem partners. These inventive innovators respond smoothly to challenges and thrive in uncertainty, as in today's market.
Being a truly customer-centric organization
These days, customers want more than just protection through an insurance product. In today's new world, customers see the product as a combination of the risk product, value-added services and customer experience. They expect insurers to help them detect and prevent loss incidents through value-added services and capacity, thereby avoiding traumatic scenarios. They are looking for empathetic bearers to help them manage their lives across a wider range of related areas. A next-generation, customer-oriented company prioritizes customer-oriented applications and protocols that redefine the experience to create a holistic experience across not only the value chain but with ecosystem partners that add value to the relationship. Exploiting the real potential of data
Data is an important part of customer-centric travel. It is the oil that drives the insurance machinery. In order to obtain and gain meaningful insight from data, the oil must flow smoothly over all components.
Today, access to real-time data sources helps insurers to assess risk more accurately, which drives improved profitability. IoT devices, high-quality visual data images and geospatial data, artificial intelligence (AI) and machine learning technologies (ML) can enable real estate insurance companies to improve existing business and operational models.
The basis for both data and the next generation of core and other technology is the cloud infrastructure. The ability to handle and process large amounts of data, AI- and ML-based advanced visualization tools, advanced predictive analytics, all integrated with the next generation of core systems, requires a cloud infrastructure for speed, security and scale.
Seamless collaboration with ecosystem partners
Insurers must also embrace an ecosystem of partners – partners that provide new data sources, new opportunities, market reach and value-added services. With the breadth and speed of technology change, customer risk needs and commitment expectations, it is almost impossible for any insurance company to have or afford to acquire the resources and opportunities needed to keep up with the changes, let alone anticipate and stay ahead of them.
A next-generation platform-based insurance business model that utilizes platform technology and a digital ecosystem with various third-party partner services completely removes this barrier. Digital ecosystems offer constant points of contact with customers in simple ways by connecting to functions that enable cost-effective growth at the same time as insurance coverage approaches and becomes more personalized for the customer.
Today's changes require insurers to be clear about how to succeed in the future of insurance. Future market leadership and success will be defined by a new digital foundation and business model that includes customer, technology and market boundary changes with vision, energy and speed. The next generation of core, digital, data and ecosystems offer insurance companies the opportunity to sell digitally, provide non-contact services and adopt the next generation insurance guarantee with improved price security.
Using an inventive mindset, property insurance can be transformed into delivering innovative products, business models, processes, channels and experiences – outside the mainstream – with an overall superior CX. Invention insurance companies can reach the ideal where insurance is not only sold but eagerly bought.
Executives who adapt an inventive mindset are ready for the best of times.
Seth Rachlin, Global Insurance Industry Leader, Capgemini Financial Services
Denise Garth, Chief Strategy Officer, Majesco
To continue this conversation, contact Seth on LinkedIn  and Denise on LinkedIn or  Twitter