I see 2014 as a tipping point year. This is the year we'll see transformation and innovation take a firm hold in insurance. We'll see renewed energy and enthusiasm as the majority of insurers embrace and capitalize on the power that transformation and innovation hold for this industry. Insurance companies will make major moves in response to external demands and the profound changes that are defining the 21st century – taking bold steps forward on the journey to the future state, to becoming a next-generation insurer.
SMA believes these next-gen insurers will continue to reimagine, reinvent, and redesign their companies and the industry by beginning to reshape four key dimensions of the insurance business:
1. Product: Developing new customized, bundled product offerings
2. Customer: Opening the lens to broaden the definition of customer to include all stakeholders
3. Business Models: Creating fluid and agile business models and practices
4. Infrastructure: Moving from physical to virtual infrastructure worlds
The impetus and incentive are present. The core investments that have been made over the past few years will begin to pay back big dividends. A modern business and technology platform will facilitate easy plug and play of next-gen technologies such as mobile, cloud, big data, analytics, collaboration, and telematics. Transformation and innovation will take hold in more areas and be more visible than in the past. The true tipping point will be reached and the next-gen insurers will begin to take their places.
2014 will be a fun year. I'm excited about watching it unfold and looking forward to being part of new accomplishments and successes in the industry.
Contact me at dsmallwood@strategymeetsaction.com to find out how SMA can help you better understand where insurers are investing to deliver the transformation needed to create an environment for innovation.
