group members. In short, these are self-organizing segments.
How to adapt: Whether the change
is in P2P or self-driving cars and “
intelligent property,” there are existing core
strategies that can manage transformative
change. Change management in other industries may also provide a guide. For example, over the last two years the investment industry has been wrestling with
the adoption of roboadvisor business
models. These firms have adapted their
core competitive advantage with build
and partner models to evolve their offerings. Through this process they have further refined the market niches they serve.
In the age of connected customers
and addressable marketing, carriers that
want to be originators and not just un-
derwriters need to focus on marketing
and communication platforms. Today’s
incumbents still have the opportunity
to lead by owning the technology and
execution know-how needed to enable
segment-driven marketing and experi-
ences. With this base, they will be in a
position to adapt their offerings to target
smaller and smaller segments, potential-
ly grabbing the scaled opportunity from
P2P or whatever other models emerge.
In this space, carriers should focus in-
tensely on understanding the long-term
value of individual consumers and seg-
ments based on their own proprietary
data. They can then target these indi-
viduals across multiple channels in ways
that will be hard to replicate using other
While there is plenty of debate about
which insurance market trends will dominate and which strategies will ultimately
win, there is really no debate that the
pace of change is increasing. The key for
insurers, then, is to just get going. Early
movers will need real-time market intelligence and execution capabilities. Fast
followers that are benefitting from innovators’ weaknesses will need robust sales
and marketing capabilities that allow
them to enter the market at scale, “
owning” their target market. Either way, the
key is to be purposeful. As insurers know
well, thriving in an uncertain future is not
about avoiding risk, but about adapting to
change from a solid foundation.
Aaron Tellier is the general manager of insurance and wealth management for Merkle.
He has been delivering business results in
the wealth management and broader financial services industry since 2000, focused
on the development of leading customer relationship marketing (CRM), sales, business
intelligence and analytic capabilities.
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In the age of connected
customers and addressable
marketing, carriers that
want to be originators and
not just underwriters need
to focus on marketing and