The fourth industrial revolution is upon us, but unless we’re first movers or fastest followers – those agile players that reap the rewards of disruption, according to management consulting firm McKinsey – we’re among those businesses that have to play catch-up.
Uncomfortable questions arise: Is our business model still relevant? How do we ensure that our responses to change are strategic and not knee-jerk reactions?
Here’s what we do know about how insurance is changing. We know that new players are doing things differently because start-ups are relatively inexpensive and they can afford to breach barriers that bigger companies can’t.
“The impact of the so-called fourth industrial revolution is about more than Moore’s law and processing speeds – it’s about the rate at which consumers are changing how they think about the world,” says Anthony Miller, CEO and co-founder of insurtech start-up Simply Financial Services, which offers life cover underwritten by Old Mutual. “For example, they are more interested in positive recommendations from people they don’t even know than in promises from brands they’ve known about for a long time. New players can now leapfrog these brands via building communities and earning social media endorsement. There are great opportunities to create loyalty in this way.”
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