I have been talking a lot with customers recently about what commercial insurance winners of the future will offer. This is the list we came up with.
Also, though some on the list are easier to deliver than others, we think most of them are deliverable today. Do you agree?
Empower collaboration
Insurance is a risk management tool. All tools work better when they are designed to work well with all the other tools also designed to be used in the same realm. Currently, collaboration between risk managers and insurers is limited. Insurance winners will collaborate seamlessly with risk managers.
Eliminate information asymmetries
Insurance is less effective and more expensive than it needs to be because of asymmetries of information between risk managers and insurers. Insurance winners will eliminate information asymmetries.
Speak multiple languages
Risk managers and most risk vendors (for example, legal, actuarial, and insurance) speak their own languages. Insurance, and other risk vendor winners, will interact seamlessly with mechanisms that translate between multiple risk languages.
Datafy
The hyper competitive insurance world is becoming more digitized; using technology to become more efficient but not fundamentally different. Risk management, where data is the core resource, is increasingly datafying; uncovering the invisible and turning it into data with the objective of creating something fundamentally new or better. The entire risk management value chain will eventually be datafied and un-siloed. Insurance winners will contribute their insurance data to enhance risk data, appreciating that risk data adds more value to insurance data than the other way around.
Increase prediction accuracy
The more you datafy anything, the better you can analyze it with predictive analytics. Risk management is a series of prediction activities. Insurance winners will be those who most enhance risk manager prediction accuracy.
Adapt
Risk is changing faster. Insurance winners will enable risk managers to adapt effectively to change and provide protection that adapts automatically with change.
Confer credibility
Risk management credibility is becoming increasingly important. Insurance winners will enable their customers to achieve, and credibly demonstrate, risk management excellence.