Consulting NOVEMBER 2014 7
New risk-based capital models. Usage-based auto insurance.
Cyber insurance. Straight-through life-insurance processing.
Rules targeting the behavior and transparency of life insurers. “Drastic changes.” “Upheaval.” “Rethinking” risk-man-agement fundamentals.
The new products, regulations and phrases zooming around
the insurance industry confirm that transformation is in the air.
So much so that the T-word is becoming standard. “There’s a
lot of transformation,” confirms Laura Hay, KPMG LLP’s National Sector Leader, Insurance. “It’s almost an overused term.”
Yet, virtually all consultants agree that the description fits to a T.
In her firm’s “2014 Insurance Industry Outlook Survey”
report, Hay and her colleagues encourage insurers to “think
in terms of revolution, not evolution,” and lay out a 10-step
process for life and property & casualty (P&C) insurers to
launch this strategic-minded upheaval.
Insurance and financial services practices within other consulting firms espouse similarly revolutionary thinking. One of
the biggest changes that insurance companies need right now
relates to the transformation of an internal function, notes Eva
Dewor, the Accenture Managing Director responsible for the
firm’s Risk Management and Insurance practices in Europe, Africa and Latin America. “Risk management has to move out of
the ivory tower,” she asserts.
That’s hardly the only moving assistance insurance companies are seeking from their consulting partners. Insurers
also want to kick their innovation capabilities into a higher
gear so they can develop new operating models, better penetrate more geographic and generational markets, and move
into new product lines, new technologies and new marketing
and distribution channels.
Making these moves requires a clear grasp of the forces
that make these ground-breaking changes necessary.
You say you want
Well, we’ve got
one in Insurance.
The industry is
toward a global
as well as new
have it all
By Eric Krell