A recent Accenture report suggested that insurance firms could increase their worldwide revenue potential by as much as $375 billion within the next five years, if they’re able to become a living business – but just how will this impact brokers?
“Brokers will see insurers who have a much deeper understanding of their end customer than they currently do today,” explains Ravi Malhotra, managing director of Accenture’s Insurance Strategy Practice for the Asia-Pacific region.
“They will have much more frequent interactions and potentially have relationships beyond the insurance offerings provided by brokers.”
Defined as “agile, flexible organisations with fluid business and operating models and an obsession with maximising their relevance” the term ‘living business’ is being employed by Accenture to identify firms which will be best placed to tap into future opportunities.
“Living businesses have more fluid models that give them the ability to evolve in synch with their partners and customers,” Malhotra tells Insurance Business. “Their modern platforms, and motivated talent allow them to continually create compelling new value propositions. These insurers will likely represent differentiated value propositions to offer customers.”
Malhotra also says insurance companies that become living businesses could potentially help brokers generate more effective leads, cross sell opportunities and fulfill a broader range of customer needs.
“It is likely that these insurers will also have technology capabilities and platforms which enable brokers to be more effective in their interactions with customers,” he says.
Malhotra also says brokers will likely find themselves as part of a customer experience that is multi-channel, multi-product, and enabled by deep insight.
“These insurers will enable brokers to deliver the broker proposition with ease and leverage both their own insights as well as those from the insurer,” he says.
“It is worth mentioning that brokers can and should strive to become living businesses as well, developing the capabilities and characteristics outlined in our study,” he adds.
