Property and casualty (P&C) and life insurers will face a different market during the next 10 years as shifting market conditions bring new rules for competition, according to Gartner, Inc.
“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,” Gartner said.
Consumers will make the rules as they increasingly turn to the Internet to buy insurance, opening the door for new, more customer-centric competitors to enter the market. Analysts predict 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, the information technology research and advisory company said.
“Consumerisation and digitalisation are two of the biggest business strategies among insurers in 2012,” said Kimberly Harris-Ferrante, vice president and analyst at Gartner.
“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,” he said.
Harris-Ferrante presented her findings at the Gartner Symposium/ITxpo, taking place here.
She said consumers will increasingly adopt mobile technologies, become more social and technology savvy, have shifting requirements for convenience, demand personalised communications, engage in more channels, and express a different view of insurance brands.
“Insurers need to better understand the evolving consumer market and build strategies on how to respond. They must adopt new business processes and technologies to better compete, respond to market conditions and control operating costs,” said Ms. Harris-Ferrante.
Gartner analysts are examining key issues affecting the Indian IT industry at Gartner Symposium/ITxpo.
