Insurance today offers a lesson in economics. Traditional product development (supply) is not meeting modern consumer needs (demand). The result is a loss of potential revenue. What is needed is transformational thinking’. (For a definition of transformational thinking and legacy thinking, see my first blog.see my first blog.)
Insurers know that growth in revenues, profits and market share is dependent on their ability to provide relevant, value-adding products and services. The industry is headed to where consumers will decide what to buy, when and how, and they will not want to be sold’ insurance. Product features, price comparisons and the recommendations of friends will often carry more weight than the agent relationship. Purchasers will demand products that meet their requirements and not settle for products that are available’. They will also not hesitate to drop or swap insurers if their experience is poor. This is a difficult challenge for most insurers since new products often take several months to a year from the point of inception to the date they are first available for purchase.
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