SMA Report: New Challenges, Competitors Face Insurers
Staff Writer | September 03, 2014
Strategy Meets Action released a new research report, The Shifting Competitive Landscape: A New Breed of Industry Challengers, which describes a new breed of industry challengers coming from technology and Silicon Valley companies that are testing insurers' historical views of competitors.
There have been numerous articles and blogs regarding the potential of companies like Google, Apple, Amazon, eBay, and other technology companies entering the insurance space, fueling speculation, concern, and for some, even fear. Each of these companies and others like them have a large part in leading the digital revolution and redefining everything from business models to customer engagement, revenue models, partnerships, customer empowerment, the use of data and analytics, and more. Centuries-old industries and the companies within them are feeling the pressure to reimagine themselves, and insurance is one of them.
"New challengers may not compete directly by offering and underwriting insurance. These challengers are competing in new ways to capture customer relationship, loyalty, pocketbook, and much more through innovative offerings, engagement, and business models," says Denise Garth, SMA Partner. "These challengers have key business attributes that illustrate the distinctions between themselves and insurers—business attributes that are fortifying the challengers' rapid growth and influence. Furthermore, each of these challengers is rapidly developing new and innovative capabilities that continually reshape, transform, and enhance customer engagement and experience."
The report highlights and discusses the following:
- Assessments of ten of these challengers based on influence and breadth of users and business capabilities.
- Identification of key attributes of these challengers and the implications for insurance, particularly since a growing number of customers are willing to consider buying insurance products from organizations outside insurance.
- Examples of the convergence of industries that are further fueling the disruption of customer engagement and experience.
- The stark contrasts in strategic vision and focus between the challengers and insurers, reflecting the shifts and challenges of the new digital economy.
- Tactics these challengers are likely to use to challenge insurance, leveraging their capabilities, customer relationships, reach, and influence to establish a new generation of program business.
- Key implications and questions to help insurers to rethink their strategic vision and business models.
- Recommendations and actions that can help insurers broaden their views of emerging challengers, with an outside-in view to bring strategic value to insurers.
The report suggests many insurers are accustomed to asking, "What products and services do we manufacture and what channels do we use to sell them in order to grow the company profitably?" But the insurance leaders of tomorrow should be asking, "How can we connect, educate, inform, and enhance our customer's lives or businesses through innovative offerings that provide meaningful value in helping to eliminate, reduce, or manage risk in a world of changing risk?" according to Garth.
- ITA Pro Magazine May/June 2019
- Spotlight on the 2019 IASA Conference
- ValueMomentum Selects Erie as Site of Regional Development Center
- Capgemini and Majesco Become Alliance Partners
- Electronic Chat with Dr. Dan Shoham
- Electronic Chat with Todd Greenbaum
- Martha Notaras: The “Outsider” with an Amazing Inside View
- ProSight Direct Offers “Effortless Insurance for Today’s Professional”
- Electronic Chat with Larissa Tosch
- Martha Notaras Will Join ITA LIVE 2019 as a Keynote Speaker
- Five Things to Consider When Evaluating Your Cyber Risk
- ITA Pro Magazine, January/February 2019
- Major Ransomware Attack Could Hit U.S. with $89B In Economic Damages
- ITA Announces 1st of Three Keynote Speakers at ITA LIVE 2019
- Electronic Chat with Jeroen Morrenhof
- Legacy Systems Are Dead. Really? Don't Count On It.
- Now Accepting Nominations for the 2019 ITA Bridge Awards
- It's time to register for ITA LIVE!
- Registration is Now Open for ITA LIVE 2019!
- What to Expect from a Digital Experience Platform Implementation
- ITA Pro Magazine September Edition is Now Available
- It's National IT Professionals Day
- Save the Date for ITA-LIVE 2019
- OneShield Software and UrbanStat Work Together to Improve Real-Time Analytics and Risk Decision-Making
- ITA LIVE 2019 - SAVE THE DATE!
- Insurance Technology Association Announces New Editor-in-Chief
- August 2018 Edition ITA Pro Magazine is Now Available
- Enterprise Architecture in an Agile World
- Top 10 Tips for Securing Your Mobile Devices and Sensitive Client Data
- Industry Insight: 4 Global Insurance Trends in Digital, Data, Content Services and Security
- Diving Deeper into Prioritizing Your Strategic Digital investments
- Why Content Rules
- How Mass Personalization Will Open the Small Business Benefits Market
- At Year End 2017, Will Your Organization Be Protected from Cyber Risks?
- Do Insurance Bots Dream of Mitigating Risk?
- Conditioned to Respond
- Managing & Mobilizing Insurance Data in a Connected World
- Race to the Finish Line
- New Tools, New Opportunities in Claims
- ITA LIVE: Reaching Insurance Industry Crossroads
- Advice to Insurance IT Leaders: Keep Your Eye on the Ball
- New Date, Venue for ITA LIVE 2017
- Guidewire Makes Major Push to Small and Midtier Market by Acquiring ISCS
- Insurance Disruption is Happening Right Now
- Insurity Adds Strategic Investment Partner, General Atlantic
- Beyond Transformation: The Convergence of Finance, Risk, and Actuarial Functions
- The Rapid Evolution of Consumer Protection Regulation
- Talent Hunt: Finding, Attracting, Retaining Top People
- Insurers Flexing Their Distribution Models
- Technology Driving Disruption in Insurance
- Fear of ‘Next Bubble’ Challenges Life, Annuity Carriers
- Technology Allows Commercial Lines Insurers to Stand Out
- Single Sign-on Viewed as Biggest Tech Challenge for Agencies
- ISCS Observes 20th Anniversary; Scurto Predicts Major Changes Ahead
- Policyholders and Their First Impressions
- Progressive Making Progress on the UBI Front
- High and Dry: Insurers Search for Disaster Recovery Plans
- Insurers Sign The (Un)Dotted Line
- Reflections of a Retired Insurance CIO
- Mobile Device Management Just One Answer to BYOD Issue
- Lessons from GEICO and Progressive on Winning the Critical Buying Stage
- You Are a Target for a Cyber Attack
- Web-based Systems are the Next Evolution in Claims Technology
- Gaining a “Wow” Experience from Web Users
- Time to Shift from Business/IT Alignment to Business/IT Alliance
- Healthcare Insurers Changing to Consumer Model
- Organization is the Key for Selecting Software Vendors
- Analysts Expound on the Needs of the Mid-tier Insurance Market
- Finding the Cure for Obamacare’s Website
- New Software Solutions Benefit Insurers on the Inside and Outside
- Products, Market Impede Investment in Systems for Life Insurers
- Combatting Cyber Threats: Predict, Prevent, Persist
- The Future of Telematics Heads Beyond Insurance
- The Shame in Cyber Security Lapses
- Building Policy Administration Systems for the Future
- Insurers Look Into The Eyes of Their Policyholders
- It’s a New Dawn for the ITA
INSURANCE IT NEWS
- Zywave Expands Commercial Content Offering in Flagship Product
- Insurance Technologies Partners with Fiduciary Exchange, LLC (FIDx) to Deliver Seamless Annuity Illustration and e-Application Capabilities in the Envestnet Insurance Exchange Platform
- Equisoft Acquires Grendel Recognized for its Premier Wealth Management CRM Platform
- Distribution Connectivity Options for Insurers Proliferating and Improving, Says Novarica
- Noblr, the New Car Insurance Company, Launches in Colorado
- Mitsubishi Motors North America, Inc. Named OEM of the Year at 2019 TU Auto Awards
- Leading Roadside and Transportation Networks Partner to Transform the Breakdown Experience for Consumers
- Insurers Leveraging Emerging Tech, Analytics, Third-Party Data in Loss Control, Says Novarica
The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.
ITA LIVE 2019
The tide is up! It's time to register for ITA LIVE 2019, our annual educational and networking conference! Our theme is "The InsurTech Revolution: Cutting Through the Hype." and we'll be bringing in a torrent of industry thought leaders, amazing insight and wonderful perspectives on the world of insurtech and its impact on the insurance landscape.
ITA LIVE 2019 will present real-life examples of true startup technologies that are helping insurers gain real advantage -- and a competitive edge -- in the marketplace. We’ll highlight the more successful InsurTech partnerships, while offering case studies that demonstrate exciting innovation and cutting-edge techniques impacting all aspects of the insurance ecosystem.
Ride the wave to LIVE 2019. Sign up today! We look forward to seeing you in May, 2019!
BLOGS AND COLUMNS
You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits... READ MORE
With stagnant growth and lingering low interest rates, the life insurance industry faces a challenging future... READ MORE
Finding insurance carriers willing to write commercial lines risks has always been a challenge for producers... READ MORE
As Guidewire Software prepares for the start of Connections, its 11th annual user conference that begins on Nov. 2, Brian Desmond, chief marketing... READ MORE