Insurance at the intersection: Reinventing the model, repositioning the brand

The insurance industry is at a crossroads. Data, algorithms and artificial intelligence (AI) are redefining the business model. And they are changing human behaviour: the way we interact with brands, with one another, with our surroundings - and the way we consume products and services.

At intersections, we are confronted with an important choice about how to move forward. This is where today's insurers find themselves: confronting perhaps their most significant strategic decision for decades. Their businesses will look very different five to ten years from now. The vision they set out today - and their ability to execute that vision effectively - will determine their future competitiveness.

This is not business as usual, and there are multiple paths to success, but one guiding formula: insurers' strategies must shift the role that insurance companies play, and provide their customers with new types of value. Those insurers that can embrace the changing environment by redesigning their operating models and reinventing their business will be the most successful industry players of the future.

This paper aims to set out a course of action for incumbent insurers as they respond to a raft of pressures:

• Their customers' ever-changing expectations.
• Dynamic disruptors transforming elements of the value chain.
• New technologies evolving at pace.
• Seemingly monolithic business models.

First, we identify and demystify these challenges; then, we outline ways for insurers to respond strategically; finally, we outline how to follow-through on that strategic response.