Insurance Technology Featured Article

Gartner Says Insurance Market is Shifting to Become More Customer-Driven

October 10, 2012

Being an insurance company simply isn’t the same business as it was years ago. Increasingly, consumers make the rules today as they increasingly turn to the Internet to buy insurance, opening the door for new, more customer-centric competitors to enter the market. What does this mean for insurance companies?

 Analysts have predicted that many large insurers will find it difficult to reduce operating expenses to compete against new competition and these large insurers will be slow to respond to shifting market conditions. This is according to a new report from research and analyst group Gartner (News - Alert).

“Consumerization and digitalization are two of the biggest business strategies among insurers in 2012," said Kimberly Harris-Ferrante, vice president and distinguished analyst at Gartner, in a statement.

"Both represent massive change in business processes and technologies. Responding to consumer change and using digital technologies to improve operations are essential in meeting emerging and future market requirements. Embracing both concepts will allow insurers to evolve to better match customers, sales, and regulatory pressures,” she added.

As a result, property and casualty (P&C) and life insurers will face a very different marketplace in the next decade as market conditions bring new rules for competition, according to Gartner. These market shifts will continue as new regulations are introduced, consumers continue to evolve, new competitors enter the market, and new management practices are introduced. It is imperative that insurers can quickly respond to these changes, and do so in a cost-effective manner.

Harris-Ferrante presented her findings at the Gartner Symposium/ITxpo, taking place in Goa, India through Friday, October 12. She said consumers will increasingly adopt mobile technologies, become more social and technology savvy, have shifting requirements for convenience, demand personalized communications, engage in more channels, and express a different view of insurance brands.




Edited by Brooke Neuman

Article comments powered by Disqus

Related Insurance Technology Articles

Independence Holding Company Platform Administers Health Products on Private and Public Exchanges

As those who live in the U.S. have become more than aware in the past few years the administration of health care exchanges, be they public or private, is an extremely difficult to do not just correctly but cost-effectively as well. News from Independence Holding Company is that IHC Health Solutions, Inc., which administers multiple health insurance lines of business for IHC's carriers and other insurance companies, has launched EbixEnterprise, a state-of-the-art system in conjunction with Ebix,… [ Read More ]
02/26/2015

PROS Cameleon CPQ Provides Insurer AG2R LA MONDIALE Greater Agility and Flexibility

PROS Cameleon CPQ enables French insurance group AG2R LA MONDIALE to expand its multi-channel sales capabilities. [ Read More ]
02/25/2015

Wheelings and Dealings: New JV Acquires Tindall Associates

In terms of the other joint venture partner, LOGiQ³, it has been a partner to msg global solutions since May 2013, and is well grounded in working with TAI as it has used the TAI system for its Reinsurance Administration outsourcing business over several years as a consulting and outsourcing services provider. [ Read More ]
02/23/2015

Black Book Foresees Rise in Payer-Funded Private HIEs

A new research study from Black Book Rankings, a research institution for the clinical technology industry, explores the current state of and future predictions for health information exchanges (HIEs). HIE adoption is still quite low, but there is a growing need for providers and payers to share health information and industry consolidation is expected to lead to a mass rejection of public, government-sponsored solutions in favor of private HIEs for enterprise-grade interoperability. Furthermore… [ Read More ]
02/18/2015

Events

Weekly Live Demo
Contact Center Solutions

Register Today!