Insurance shifts from products to solutions
Many customers are under-insured against emerging risks – especially those related to intangible assets and cyber security. Closing this gap means expanding the concept of traditional insurance...
Historically, the role of the insurer has been to protect individuals and organizations in the event of something bad happening – typically by writing a cheque. But today’s customers demand broader solutions that prevent incidents occurring in the first place and provide much-needed support in case of a loss event. The more innovative players are already offering a range of services covering risk monitoring, management, prevention and response.
But there is some way to go, with commercial customers increasingly looking for bundled solutions that draw together a range of elements like risk management, tax, legal and insurance. In addition to providing insurance, more and more insurers are now introducing additional, specialized services in sectors as diverse as hospitals, care provision, professional services, and oil and gas.
We expect insurance businesses to start providing paid, premium services and, as customer pressure grows, to transition towards proactive, ‘free of charge’ or ‘pay-as-you-go’, value-add services. As a result we are seeing sector convergence in specific market niches. For instance, we see lifestyle concierge providers increasingly broadening into insurance, just as certain insurance providers are now looking to provide experiential compensation rather than purely financial.