Findings from
Skating to where the puck is going
There's an old adage in hockey – don't skate to where the puck is, skate to where the puck is going. This is an apt metaphor for the current state of the insurance distribution landscape. As younger consumers continue to come of age and mature into insurance buyers, they bring expectations shaped by digital-first experiences.
The average age of P&C insurance policyholders skews dramatically older, and they aren't exactly leading the digital revolution in insurance. It's younger consumers, who haven't necessarily entered the insurance market, who have spoken loud and clear with their preferences for digital shopping experiences, and carriers will need to embrace them to replace aging customers. Carriers that adapt to these preferences now will gain substantial advantages over those that put their head in the sand and pretend everything will remain the same as it always was.
First movers during transformative moments in any industry typically secure valuable marketshare, resources, and learning opportunities. We've witnessed this pattern with payments, where Visa and Mastercard recognized changing consumer preferences early and built the infrastructure for a cashless economy. Their foresight fundamentally transformed commerce.
The insurance industry now stands at a similar inflection point.
Undeniable numbers reveal market disruption
The findings leave little room for interpretation – 64% of digital natives believe insurance should primarily be purchased and managed online. This demographic will drive insurance market dynamics for decades to come, making digital transformation not just advantageous but necessary for long-term viability.
This preference shift coincides with other industry pressures. Climate change and significant premium increases have exposed limitations in how quickly insurers can develop, launch, and update products. The traditional approaches to insurance program development haven't kept pace with market needs or consumer expectations.
Powerful partnerships drive industry innovation
Insurance companies can navigate this transition through strategic partnerships with insurance infrastructure providers. These collaborations enable established insurers to meet evolving consumer preferences while addressing external market pressures. There was a period in time where technology systems and software were self-hosted on a carrier's premises. That makes little sense today through the lens of cloud providers like Amazon, Microsoft, and Google and rejecting the clear benefits of a partner providing those core infrastructure components.
The stakes are considerable – three in five digital natives report a willingness to switch providers if their current insurer doesn't offer digital experiences. Their loyalty lies with convenience, not the carrier.
Notably, consumers increasingly prefer purchasing insurance through trusted consumer brands rather than directly from carriers. The research shows 63% of respondents want more options to purchase insurance online from familiar brands, such as buying homeowners insurance through their bank. Sixty-five percent also expressed greater interest in purchasing insurance online from a trusted brand than finding insurance independently.
Tomorrow's digital insurance ecosystem takes shape today
While most consumer transactions have moved online, insurance has lagged behind. Consumers now expect the same convenience of digital in insurance that they experience in every other aspect of their lives.
The collaboration between brands, carriers, and insurance technology providers creates a network effect where transactions happen more efficiently, and consumers obtain coverage through their preferred channels. For established insurers, recognizing and adapting to this digital direction isn't just a growth strategy – it's becoming essential for market relevance.
The message from consumers is unmistakable: The future of insurance is digital, and the time to partner, and win the future, is now.
