The insurance industry is at a crossroads. Data, algorithms and artificial intelligence (AI) are redefining the business model. And they are changing human behaviour: the way we interact with brands, with one another, with our surroundings — and the way we consume products and services.
This paper aims to set out a course of action for incumbent insurers as they respond to a raft of pressures: their customers’ ever-changing expectations, dynamic disruptors transforming elements of the value chain, new technologies evolving at pace, and their own seemingly monolithic business models. First, we identify and demystify these challenges; then, we outline ways for insurers to respond strategically; finally, we outline how to follow-through on that strategic response.