Outside-In Competition Forces Insurance Industry Innovation

Insurance companies need to add value in the competitive, connected and data-driven world of online products and services, all amid increased security risks and regulation.

Industry trends

New competitors are disrupting the industry by introducing digitally-driven business models that offer consumers new levels of personalization and choice. Established firms are now competing with cost and value comparison websites, non-conventional purchasing models, mobile/social products and customer services.

Key industry trends include:

• Pricing pressures have intensified in an expanding market
• Companies are tapping online and cloud-based services to innovate
• Data analytics capabilities are becoming more essential, particularly as telematics develop 
• Global demand is rising for self-serve insurance products
• The value consumers place on recognized brand names is diminishing