The insurance industry is transforming unlike any time in its history. New startups, new business models, innovative products, and new types of partnerships are surfacing everywhere. Rapid, tech-driven advancements juxtaposed against the stable, deliberate, risk-averse nature of the insurance industry are exposing both challenges and opportunities for insurers.
A very important trend is taking place: convergence. Convergence combines the best of new and innovative ideas, technologies and approaches with the industry’s traditional strengths. Insurers that are able to successfully navigate and capitalize on convergence will emerge as the winners in a stronger digital insurance industry.
But, it would be a mistake to assume that the implications of the digital age are only important for Personal Lines. Transformation is also highly relevant for Commercial Lines insurers. In the case of Commercial Lines, the nature of the transformation is different, with a focus more on enhancing the technology capabilities for agents and improving collaboration between agents and insurers. This era of digital distribution will revolutionize how agents and insurers connect, collaborate, and grow in this new marketplace.
3 Key Digital Distribution Revolution Business Drivers
Three key business drivers have emerged that enable the digital distribution revolution. To create the right strategies and plans to survive and thrive as businesses during the digital transformation of the insurance industry, insurers need to understand these drivers. They will also need to implement core business and technology capabilities. Read our latest Strategy Meets Action (SMA) insurance industry report, Digital Distribution: Revolutionizing Agent/Insurer Collaboration for a detailed outline of the drivers and capabilities. Review SMA’s perspective on the nature of transformation in commercial lines and learn about opportunities to enhance technology capabilities to improve collaboration with independent insurance agents.