Remains resilient in a changing insurance revenue landscape
The insurance revenue landscape has changed radically in the last year and will continue to change. In this series, I have discussed the nature of the change and explored how insurance companies practically think about their companies. The only question left is: where, next?
As traditional revenues are slowly being replaced by innovation-driven revenues that reflect customers' changing needs, insurers have to relocate. Our insurance revenue landscape 2025 identified the following four areas of innovation:
- Health, health and life products and services
- Sharing economy, climate change and cyber threats
- Technology integration in traditional products
- Shift to alternative distribution
This is a good guide, but the real measure of resilience and market relevance lies in how insurers respond to these trends. We suggest that we start with the innovation areas where your company is successful, based on your current business and market positioning. . The insurer recently launched Risk Scanning, a new global risk assessment service on the right. combines the expertise of AXA XL's risk consultants with data mining capabilities and probabilistic algorithms to perform multiple risk assessments of a company's physical locations. Risk Scanning enables risk managers to make assessments of the company's websites by region, country or risk, giving them a better understanding of their exposures. This enables them to implement risk management and risk transfer strategies that better match customer needs. Read more
Global trends in innovation do not look the same in all markets. The four innovation areas described above apply to all markets, but will succeed if they are carefully adapted to the needs of the region. Vitality is, for example, the world's largest scientifically proven health program. By playing important aspects of health and well-being such as exercise, healthy eating, regular checkups and more, Vitality motivates its members to live healthier lives and thus reduce their medical costs. In November 201
4, the Generali Group entered into a partnership with the financial service provider Discovery to implement the program in Europe, which led to a successful launch in Italy, Germany, France and Austria.
Sometimes the geographical and regulatory environment makes innovations more relevant. Climate change, for example, is a priority area for Europe. Zurich United Kingdom is an insurance company that has recognized this and has begun to put the systems in place to drive sustainability. There is a significant amount of underutilized data in the building's management system, so Zurich UK collaborated with technology partner GWTi to extract this data, analyze it and present it to customers in a way that they can understand and trade. Based on the analysis, points are presented to the customer through both a 60-day health check report and a live instrument panel that enables customers to monitor changes for themselves and discover areas for improvement. With sustainability and efficiency as a central focus for insurance customers, it makes sense to start looking at how to meet customers' needs in this space. Building telematics is still new and Zurich is the first insurance company to offer a solution that covers both risk and sustainability.
To secure future income, insurers need to think about how they deliver value to their customers. This is not as scary as it may seem. By taking advantage of their existing strengths and understanding the geographical and customer requirements, insurers can pivot successfully.
For further insights, read the report Insurance Income Landscape 2025.
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