The business world as we know it is changing. Etsy has transformed the handmade marketplace, allowing artisans and crafters to sell products to a global, online audience. Uber has single-handedly turned the taxi industry on its head with its groundbreaking rideshare application. Rent the Runway now allows individuals to rent designer gowns and accessories for a fraction of the cost. But what do these changes mean for the insurance industry?
No longer are insurers able to ignore the transformations that are re-shaping the business world. Thanks to new regulations, increased industry competition, rapid technological advances and change to distribution channels, insurance organizations are coming face-to-face with the new disruptive reality. As my brother and co-CEO at The Jacobson Group, Greg, discussed in our latest edition of Compass, the insurance industry stands at a vital crossroads. Only those organizations that adapt to the new business reality and embrace the untapped potential provided by disrupters will succeed.
Disruption is not a new phenomenon. In the last few decades, we have seen the personal computer replace the typewriter and the cellphone revolutionize the telecom industry. Within insurance, the emergence of organizations such as Esurance and Progressive, with their simplified online-based models, have changed the way policyholders purchase and manage insurance policies.
Having historically siloed itself away from most radical changes and innovations, the insurance industry now faces monumental upheaval. Technological advancements are increasing the opportunity for disruptions while consumer preferences are fueling the demand. From telemedicine and home sensor systems to drones and the e-commerce revolution, insurers are beginning to embrace change and expand beyond the status quo.
Disruptive innovation is poised to redefine the future landscape of the insurance industry. Only those insurers who are prepared to challenge themselves and to overturn their current business models will be able to successfully compete in today’s constantly evolving and competitive insurance marketplace.
For insights on the growing importance of industry disrupters along with an update on the insurance industry's talent market, download Compass.
