Critical Considerations to Sustain Competency in Modern Digital Insurance Age

By Insurance CIO Outlook | Monday, July 22, 2019

Digital Insurance To cope with the present pace of change, insurance needs are vital for firms seeking profitable business growth.

FREMONT, CA: Leaders in the insurance industry are seeking ways to profitable growth amid unprecedented economic, financial, and regulatory change. No longer can companies pursue top-line growth for its without relying on cost cuts alone to boost margins. Today, companies must strike a strategic balance between profit growth and shareholder returns over the long term. Here are a few ways insurance firms can stay ahead of the curve in this digital age.

• Responding to the Pressures

Before attempting to execute new business strategies, insurance companies need to evaluate every dimension of their operating model. Structural inadequacies can take many forms. Companies may lack the scale required to generate profitable growth under new capital requirements, or the flexibility to respond quickly to market shifts. Poor technological capabilities often force old-line insurers facing with new digitally oriented rivals.

• Time for Real Change

Majority of insurers work diligently and continually to improve their businesses across all dimensions. Firms are gathering insights on customer demands and behaviors, nurturing unique capabilities to differentiate themselves from their competitors, modernizing products and services, and embracing digitization in all its forms. Change is inevitable, and these are all smart approaches.

• Joining Strategy and Structure

As insurance firms realize that legacy approaches and technology architecture may be hindering innovation and real-time responses to changing market conditions. This makes many of them rethinking and redesigning their core processes to facilitate demanded change. Recent transactions in the industry show the range of structural options for companies that want to advance strategic goals in a changing marketplace.

• Capitalizing on Changes

One thing is clear amid the confusion of the modern insurance industry, that business, as usual will not deliver sustained, profitable growth. As changes reshape market trends, conventional tools for executing business strategy are losing their effectiveness. Today’s challenges are mostly structural. To this end, insurers must capitalize on efficiency to compete as the competition intensifies, regulatory burdens rise, and financial pressures increase.

Approach to winning strategies may vary from company to company. But with the right understanding and planning, companies to capitalize on industry changes can thrive.

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