With insurance carriers, TPA’s and benefits advisory firms racing to differentiate themselves from the fierce competition for business and talent, there are many trends that shaping up in the industry.
Being digital by default: Many firms are offering their employees, customers, clients web and mobile applications to provide both transactional and analytical information to assess risk exposure, trending of claim data, collaboration tools with producers/agents, etc.
Impact: This can cause unintended consequences of analysis paralysis and technology platform disintegration
Reducing costs to compete on price: After reducing head count, process improvement, consolidation and automation is shaping up to be the most effective way firms are learning to cut costs and “cycle times”. Technology trends continue to be system/application consolidation, cloud-based processing, storage and hosting.
Impact: Reducing costs could impact the customer experience negatively. Care needs to be taken so that enough attention is placed on direct interaction and not pushing everything to self-service.
If you can’t beat ’em, buy ’em: As organic growth continues to be challenging, firms are beginning to do more deals to build their book of business. However, they are doing little to integrate these firms into their portfolio. Some are better than others on cross selling across their platforms, but still a lot of opportunities exist to share best practices, company/industry data, etc.
Impact: The deals will boost revenue but more could be done to create a “bigger piece of the pie” to differentiate offerings and insights with prospects and clients.
Where are your opportunities to differentiate? What stands in the way?