While technological innovations, customers’ high demands and new progressive companies are changing the face of the market, insurers still pay great attention to sales growth, profitability increase, existing problem solving and maintaining competitiveness in a rapidly changing industry.
The executives of insurance companies face many challenges, according to the Deloitte report. The political and regulatory changes in the world are transforming a number of basic rules for operating insurance companies. The innovations and high customer expectations are the factor accelerating the change in business practices, and new, advanced insurance companies are striving to take the place of traditional market participants. In particular, insurance companies are trying to keep up with technology development in the field of insurance, which we have recently talked about in the publication “Fintech by the numbers” that analyzes the trends and in startup financing.
The use of digital technologies leads to a change in the competition process between insurance companies, introduces new competitive factors, and modifies the consumer behavior of policyholders when choosing an insurer and insurance service.
“The impact of the insurance market digitalization on competition, competitiveness of insurance services and insurance companies is enormous. Digital giants are trying to expand the range of services. It won’t be surprising, if companies like Facebook, Google and Apple will soon become our competitors,” suggested Thomas Buberl, the executive director of AXA, a French insurance company.
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