The new insurance normal means organizations must adapt to new customer expectations but also enable employees to work remotely. But in our industry, there is a tendency to follow legacy as-is operational processes rather than think about new ways to cater to a digital customer journey, expand distribution channels, enhance relationships, and optimize the value proposition and profitability. Legacy thinking is driving decisions rather than customer needs.
The need for brokers to be able to work anywhere, anytime has never been more acute than now. Brokers without this capability over the last few months have no doubt learned the hard way about the downsides of sticking with aged legacy systems.
The people, process, and systems framework for successful organizational transformation has been around since the 60s. Its a well-studied idea that those are the three key elements needed for a business or organization to embrace change and thrive. But sometimes, something unexpected gets thrown into the transformation mix. For the insurance industry, that something was COVID-19, which has forced full-throttle change in how we work and erased long-held assumptions about remote operation, the need for paper, and retaining legacy systems.
The insurance industry is currently a hotbed of M&A activity. For a long time now, mid-to-large size companies have been aware of the economies of scale and synergies that can be leveraged through a merger or acquisition, with many firms enjoying the benefits of adding additional services, capabilities and business coverage to their existing portfolios through M&A.