What Insurance Companies Need to Do

Michael Naylor
Additional contact information
Michael Naylor: Massey University

Chapter Chapter 5 in Insurance Transformed, 2017, pp 93-174 from Palgrave Macmillan

Abstract: Abstract Naylor provides a useful analysis and summary of what incumbent insurers need to do to survive the looming waves of disruptive technological innovations and the competition by InsurTech entrants. This is placed within the framework of innovation disruption theory and uses a number of industry studies. The chapter analyses each stage of the insurance process and outlines what is required. The insurance sector is seen as requiring a transformation in the way it views its output, in the style of management, and in its engagement with customers. The major theme of the chapter this that intensive end-to-end automation will transform costs of production. The chapter argues that combining this with telematic-based big data and AI analysis means that the current insurer model is likely to be outmoded. Naylor argues that the way forward is to transform insurance from a product-based model to a data-based service model. This will allow incumbents to survive and enhance profit streams. The chapter outlines how there will be a need for increased flexibility and rapid response to changing customer expectations. The chapter then lays out a series of transformation pathways. These will include being more actively involved with customers and creating a wider business ecosystem. The management requirements of moving to an AI data-based approach are explored. The lessons learnt from a number of successful and unsuccessful business case studies are integrated throughout.

Date: 2017
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:psincp:978-3-319-63835-5_5

Ordering information: This item can be ordered from
http://www.palgrave.com/9783319638355

DOI: 10.1007/978-3-319-63835-5_5

Access Statistics for this chapter

More chapters in Palgrave Studies in Financial Services Technology from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().