Next Generation Insurance: Leading from the front.: April 2010 Archives

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April 29, 2010

Smarter Organizations

While industry outlook for 2010 seems better than 2009, it still doesn't seem favorable towards either revenue growth or profitability. One of the key challenges each insurance company needs to ask is how can they work towards becoming smarter enterprises in 2010 and beyond?

For insurers to be smarter enterprises, firstly they need to simplify their people & operational processes and technologies & systems. This could mean business process optimization, application/ technology / asset modernization towards gaining more efficiencies and effectiveness. Insurers that invested in simplifying their processes by leveraging technology a few years ago are reaping the benefits during the recession.

Secondly, organizations need to continuously collaborate & learn new ways of doing business. This could mean entering new markets, launching new products / variants, launching new service offerings, new channels of distribution and innovation in customer service. Recent recession has forced many insurers to start thinking this way. It can be quite easy to go back to old ways as the market opens up. It is only possible if leaders create a culture of learning in the organization and walk the talk.

Lastly, organizations need to adapt to the changing environment. Changes in demographics, changes in talent availability, changes in financial markets and regulations. These changes would be visible only if the organizations have the learning orientation and are nimble /simple. Complex organizations would find it very difficult to adapt to the changes in the environment . Insurers that have tried different ways of doing business, innovated on the distribution channels, launched new products and services faster than competition in the past would be able to adapt well to the changes in the environment. Changes in technology such as social media, blogs could provide significant impetus towards growth and improving the stakeholder experience. It depends solely on how quickly insurers can adapt and deliver business value.

Posted by Siva Nandiwada at 1:59 PM | Permalink | Comments (0) | TrackBacks (0)

April 18, 2010

Consumer 2010- Opportunities for growth!

With the markets looking up, recession receding, insurance industry is no exception and is poised for growth. However, the industry is facing a new consumer- one being careful, more mindful of what and where to spend - an indelible mark left by the brutal down turn and recession.

Reason? The great downturn of 2007-09 has impacted people from all strata of the society - the well heeled, middle class and the poor - alike, and the dent has been deeper than any in the past with capital losses ranging from 70% to 90 % in many cases. Though the recent market recovery has brought back some of the value, the scars are still raw- with the average investor still keeping away from the market.

There is a major change in the consumer buying behavior at all levels - moving away from the indulging type to the need focused, necessity driven model. From a rapid spend consumerist economy, we are moving into the more careful, thoughtful set of consumers who will look for value over class and jazz for every penny they spend.

Major retailers like Wall mart are focusing on furthering quality, enhanced service and need fulfillment than promoting indulgence. Financial Services firms are vying one another to cut down the fee. Many carriers have started to relook at their product portfolio trimming the frills and furs and exploring products that fulfill the basic needs for protection and savings. Exotic products with higher fees and charges are losing the glamour. Simple products with superior service quality are the need of the hour to retain the customer and grow.

Better customer segmentation, analytics and intelligence are critical to position the right proudct and grow in this market!

Posted by Baskar Sridharan at 8:00 AM | Permalink | Comments (1) | TrackBacks (0)

April 14, 2010

iPads & Tablets- potential to accelerate online product research for complex insurance & retirement needs

With Apple's popular iPhone/ iPod Touch / iPad devices expected to be in the hands of nearly 1% of the global human population sometime in 2011-12, you have to wonder if this is more of a gaming driven user adoption curve or would there be more practical uses emerging for the latest iteration of the device that has been labeled as "magical & revolutionary" by its makers.

One thing is clear- the iPad is the same size as a regular business folio used by many executives and for those too busy to be accessing laptops while on the go, it is going to be an innovative addition to have a notepad sized connected device to carry around all day. A basic behavioral change that will be enabled is for users (both as consumers & business professionals) to be able to access more frequently various news & publications pertaining to their interests. A potential extension which would arise is for a more connected user to engage in higher levels of research into their own product or service needs- while it would not necessarily tilt consumers away from an innate tendency to rely on personal touch (agent/ advisor), it is definitely going to enhance their awareness and also enhance their connection with other similar user profiles.

For financial services firms, the iPad is going to liberate their user segments from the small form factor of the Blackberry & other smartphones for regular transaction capabilities such as account browsing, trades etc. It is also imperative for carriers to enhance their social media vehicles and ensure a platform for consumers to interact with each other and also with potential prospects who would be researching financial services offerings (example- retirement services) prior to any purchase even if such purchase is ultimately done through a personal selling channel.