The insurance industry is often recognized for its mature business model and predictable revenue. However, rapid evolution in technology, economic volatility, and customer expectations have made growth unpredictable. Recently, strategic collaboration has anchored insurers and provided stability and scale, has made them more competitive, produced new revenue models, and expanded their customer base. Is collaboration the new touch point on an insurer’s road map to success?
During the fourth session of our INFUSE webinar series titled, ‘Partnerships: Collaboration is the New Competition,’ insurance veterans outlined that collaboration is vital to the future of insurance. Panelists Britt Van Dalen, Senior Partner Alpha FMC, Jakub Wroblewski, Manager, Sollers Consulting; and Mike Graham, Head of Commercial, Send, shared insights on how to identify and find the right partners, develop new revenue streams, and improve core competencies that will help accelerate growth for carriers in a competitive and evolving insurance landscape.
Self-reflection; is the first step toward partnership
Partnerships can be a significant catalyst for the transformation and outlook of a brand. Ideally, it’s a good idea to define specific outcomes and strategic expectations before looking for a partner to collaborate with. Van Dalen stated that the most successful partnership models begin with the insurer looking inward.
“As you are seeking a partner, having a guidepost, being able to point the compass needle in the direction of what you’re trying to achieve, what your vision for the future looks like, really helps you identify what partners you should choose. It also helps your partners step up their game and put their best foot forward.”
-Britt Van Dalen, Senior Partner, Alpha FMC
Three golden rules for selecting a partner
There is a sincere need for pragmatism when two brands forge a strategic alliance. Moderator Tony Tarquini recalled his company’s partnership with a giant insurance broker and how roadblocks were always managed with shared responsibility and joint solutions. This is precisely why Graham prescribes the three golden rules for selecting a partner.
“Cultural fit, aligned vision, and strong expertise. These are an absolute necessity in the selection process. You’re in for the long haul and you want to be targeted in your approach when selecting the right partners. This holds true not just for technology partners and system integrators, but for the entire ecosystem, which will be at a crossroads at some point.”. -Mike Graham, Head of Commercial, Send
Unlock new revenue models with collaboration
Like legacy systems, traditional insurance business models are being challenged by fierce competition. An emerging trend to tackle the rapid shift is a focus on collaboration between insurers and service providers. By utilizing the expertise of a service provider, insurance companies have been able to identify new revenue models, reduce costs, focus on core competencies, and drive growth. We have seen trending partnerships in industries related to healthcare, home security, renewable energy, climate risk management, and wellness. But the most valuable partnership so far has been between insurance and technology.
Insurtech enables a win-win-win partnership model
The relationship between insurance brokers, underwriters, and customers has always lacked synergy. Brokers often present scenarios with some urgency and demands for fast turnaround times, which leaves underwriters hustling to bridge the tasks of data collection and risk assessment. This sometimes takes too long and before they realize it, customers have already moved on to the next option. Insurers seem to have found a solution by partnering with Insurtech and adopting smart solutions based on automated workflows and tasks. Underwriting workbenches use automation to streamline data, expedite faster responses to brokers, and ultimately help insurers respond to and ideally win more frequently.
Insurtech partnerships have become the most promising and sought-after collaboration in underwriting history. The recent partnership between Insurtech Send and insurance pricing software hyperexponential is a testament to a successful partnership. This collaboration allows users of hyperexponential’s pricing decision intelligence platform, hx Renew, to seamlessly connect with Send’s leading underwriting workbench capabilities. The integration streamlines underwriting and pricing while enhancing accuracy which provides insurers with a competitive advantage.
Partners must share a customer-centric approach
Customers want everything all at once and they want it immediately. A digital-first approach, personalization, transparency, social responsibility, and value-added services are table stakes. To meet these demands, insurance companies must look for partners who share customer-centric values and are willing to deliver superior customer experiences. With the right partner, insurers can identify the evolving needs and preferences of policyholders and improve the way they underwrite risk to enhance customer satisfaction. This also helps extend service offerings, reduce operational costs and improve overall efficiency and response times.
The future of strategic partnerships in commercial insurance
In summary, the panelists provided a glimpse into the future of strategic partnerships for the insurance industry:
- Van Dalen explained how partnerships represent huge decisions for the future of business. Insurers must choose partners who they trust beyond quantitative and qualitative factors.
- Wroblewski stressed the need for genuine chemistry between insurers and their partners.
- Graham urged insurers to pick a partner that can bring out the best for them now and in the future.
The future of insurance will strongly rely on strategic partnerships. As the insurance industry evolves, insurers must adapt and embrace new strategies to remain competitive. Collaboration is one of the keys to unlocking new business opportunities and will strengthen how brokers, carriers and partners work together to deliver a win-win-win model. Strategic partnerships will be a key focus as the industry looks to achieve success over the next decade.
You can watch a recording of the webinar here.