Redefining Insurance: A Scenario-Based Analysis
Celent has released a new report titled Redefining Insurance: A Scenario-Based Analysis. The report was written by Michael Fitzgerald and Juan Mazzini, senior analysts with Celent’s Insurance practice.
Rising customer expectations regarding digital service delivery, numerous advances in technology, and threats from entrants from the startup world are pushing the pace of change in insurers. This report details a scenario planning model that can help insurers extract clarity from confusion. It then presents the results of a workshop with insurance professionals on a specific scenario.
Given the pace and consistency of change, insurers should adjust their planning methodologies accordingly and consider the use of scenario planning. Leading insurers are embracing continuous innovation as a new corporate capability. Scenario planning can be a tool to develop organizational consensus about the priorities for change.
“The interactive nature of the scenario planning process demonstrated a general agreement regarding the urgency to change the insurance model from one of indemnity to one of avoidance. Participants feel that this change is inevitable and a near-term opportunity/threat,” commentedFitzgerald.
“Scenario analysis is especially impactful for insurers because the industry is based on very old assumptions about how the world operates, the nature of business, and risk. The digital storm that defines this decade modifies these assumptions,” said Mazzini.