Author: Steve Anderson
“The greatest challenge for successful companies is focusing on customers’ current preferences while preparing for their future preferences.” —Clay Christensen, The Innovator’s Dilemma
It seems like every insurance magazine, newsletter or online publication is talking about the disruptions coming to the industry. Some react by pointing out that the insurance industry is more than 300 years old and has survived many doomsayers. Others say it is time for the industry to innovate and respond to the times.
It’s true: change is coming at the industry faster than ever. Changing expectations of the digital consumer are requiring the industry to think differently about what customer service even means today. New types of insurance exposures have exploded with new ways of doing business.
That’s why ACT has responded with a brand-new work group—the Changing Nature of Risk Work Group—that will dig into and report on these changes and provide recommended actions you can take to stay ahead (or catch up if necessary). The Agents Council for Technology has for many years been helping insurance agents and brokers better understand emerging technology and how to use it effectively to enhance productivity and create a better customer experience. This new work group is just our latest endeavor to provide you with actionable information and guidance.
Initial Topics
During our initial discussions, we realized that we needed to address different constituencies within the industry. Each segment has different perspectives and requirements. The four we have identified are:
- Agent/broker
- Insurance company
- Clients/consumers
- Hardware and software vendors
We’ve labeled our first set of topics “Maturing Now.” These topics are not coming; they are here now, and we believe the industry needs to focus on them immediately. The topics include:
- Mobile revolution, what can/should we offer
- Drones
- Sharing economy (Uber/Lyft, AirBnB, others)
- Mass customization (personalization, targeted marketing and product creation)
- Social marketing
- IT consumerization
- Peer-to-Peer (P2P) insurance
- Telematics
- Artificial intelligence, machine learning, chat bots, guided conversations (early phases)
- Connected homes
Other Disruptive Channels
We labeled the next group of identified topics we identified “Other Disruptive Channels.” These include:
- Internet of Things (“IoT”)
- Smart homes and buildings
- Advanced analytics
- Collision avoidance vehicle systems (Level 1 and 2)
- Speech/visual translation
- 3D printing
- Work from home and virtual employee base
- Bitcoin/alternative payment systems
- Cyber liability
- Software-defined security
- On-demand product ordering/shipping
- Cloud computing
- Open-source software
Advisory Publication
The goal of the work group is to produce an advisory document for each topic identified above. The advisory will be action oriented. The industry does not need more analysis; it needs to formulate a plan and take the first steps. The advisory will be a maximum of two pages and will include (at least initially) the following sections:
- What the issue is, with an explanation of the topic
- Broad implications for individuals, businesses, the economy, etc.
- Insurance industry implications
- Advisory/recommendations: what actions/steps the reader should take
- Examples and resources, such as links, websites and articles, for further information
Notice that, in addition to an overview and explanation of the technology, specific action steps will be included to help direct the four groups to make progress.
Like the topics it will examine, the Changing Nature of Risk Work Group will be flexible and fluid. New technology issues will continually be examined to determine if they need to be included.
Remember what Peter Diamandis, founder of the XPRIZE Foundation, said: “It isn’t that entrepreneurs are smarter than companies; it’s that they are trying more crazy ideas, taking more shots on goal.”
Now it’s your turn. What has the work group missed? What topics are not on the lists above that should be included? Is there a better format than the advisory to report out findings? We seek your input. Send your ideas for topics, improvements or resources to steve@steveanderson.com.
Steve Anderson is co-chair of the Changing Nature of Risk Work Group and owner of an eponymous insurance technology advisory firm.