Accenture predicts1 significant global growth in the insurance industry over the next five years. However, revenue pools will change, and life insurance companies will need to innovate to gain a competitive advantage from not only product innovation but also innovation in distribution channels. How much opportunity is at stake? According to Accenture’s report, almost five percent of global premiums – about $ 280 billion – are expected to be affected by product innovations ($ 140 billion) and transitions to digital third-party platforms ($ 140 billion). Given these seismic changes, we see the following opportunities for you to grow your business:
1. Combined digital insurance and wellness platforms improve the customer experience and build trust
Data-driven digital insurance platforms can unlock insights that help you shape the experience that every consumer expects. When infused with data-driven technology, products can present themselves to potential policyholders at just the right moment – a much more effective approach than deferring them to consumers on a random basis. Health and wellness apps offer a huge opportunity for you to get in touch with current and potential policyholders when it matters most. This provides a better and less intrusive experience that also increases the likelihood of winning new policyholders.
2. AI-optimized distribution channels
Whether you are looking for qualified agents or want to retain and stimulate those you have, distribution management can improve the top and bottom line for both you and your agents. AI and machine learning are driving great progress in terms of endurance and distribution efficiency. Together, these technologies can make your business run more efficiently by optimizing product placement and reducing distribution costs. This in turn can allow you to offer attractive products along with flexible pricing and compensation, which will help you attract the best agents.
Relevant new products and services integrated with technology
Artificial intelligence allows life insurance companies to offer very personal coverage linked to each policyholder’s specific circumstances, such as their life stage. Given AI’s ability to generate such highly tailored policies, it’s no surprise that insurance companies of all sizes invest heavily in it. According to Global Data Research, insurance companies will spend $ 3.4 billion on AI platforms worldwide by 2024. AI, combined with data analytics, can help you generate insights to improve your product development and accelerate your new products to market. . It’s welcome news if you plan to use customizable coverage to capture micro-segment opportunities.
The good news is that you can quickly build or update your digital opportunities through ecosystem partnerships, which have become more accessible through APIs and integrations with digital insurance platforms. As these platforms become more intelligent and automated, you will quickly be able to discover more opportunities to create innovative new products and services that can profitably grow your business.
Let’s talk about your strategy for running a new business.
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Disclaimer: This content is provided for general information purposes only and is not intended to be used in consultation with our professional advisors.