Partnership helps insurers adapt quicker
The global economic crisis following the COVID-19 pandemic will challenge and disrupt the insurance industry for the foreseeable future. We can no longer work as we did in the past. We need to introduce new technologies and methods and apply our lessons learned from past recessions.
However, the patterns we can observe from previous recessions appear tried and tested and consistent. This gives an added edge to insurers entering this recession. By extrapolating from what has worked in the past, insurers can implement bespoke strategies that allow them to outperform. While the future may seem uncertain and daunting, smart strategic games can help you emerge stronger from the recession.
The challenge for insurers
In order to adapt and thrive, insurers need to make big and lasting changes. These include:
Structural cost reduction
This requires a fundamental change in the way of working. Insurers can automate manual tasks or reorganize workflows and breathe new efficiency and life into their teams.
Strategic reinvestment of savings
Once insurers have taken care of their existing processes, there is also an opportunity to invest in innovation and growth (e.g. new sales channels and partnerships). New technology and innovative investments can help minimize the business impact of an economic downturn and drive future growth.
The partnership enables insurers to adapt more quickly
Change may be daunting, but you don’t have to do it alone. Insurers have access to two key external influences in their post-recession recovery: strategic input from advisors like Accenture and the innovation opportunities offered by ecosystem partners.
Take the case of an Italian financial services company that was determined to adapt to the rapidly changing market landscape after the COVID-19 pandemic. They partnered with Accenture to conduct an in-depth medium term analysis to determine the impact of COVID-19 on the insurance business. This included helping understand how the market has changed, how the customer base has changed, and what actions would be required to respond to these trends. The partnership was underpinned by a desire to be more resilient and seize new opportunities rather than just survive.
The ability to analyze the future and plan strategically enabled our clients to plan their strategic steps over the next 1-2 years. Out of 25+ recommendations to respond to the changing landscape, four have prioritized including a focus on the automotive business.
In another collaboration with Zurich, we worked with initiatives to develop new ecosystems in the areas of mobility, retail and supply to drive the digital transformation and create new ecosystems that are adapted to new consumer habits. The aim is to strengthen the digital business of the Zurich alliances and to generate sales of 100 million euros over the next three years. Zurich has various digital solutions and service platforms that are unique in the insurance market, such as Zurich Klinc. The collaboration with Accenture will strengthen the link between the company and the final distributor. Zurich and Accenture have long been working on the company’s digital transformation with successful initiatives such as the launch of Zurich Klinc, the on-demand insurance for digital devices that enabled the company to attract a millennial audience.
The key to recovering from the recession is to use every challenge as an opportunity to reinvent yourself. With a focus on partnership and innovative games, it is possible for insurers to become more competitive than before.
Contact me to discuss how as a partner you can build your company’s recession response.
Read the full report on Insurance: Strategic Measures to Restore the Recession.