“Every insurer in the world suffers from FOMO [fear of missing out]. They all want to know what their competitors are doing and don’t mind being the second carrier doing the same.”
When veteran insurance adviser Tony Tarquini made this startling statement at Send’s latest INFUSE webinar last month, my fellow panelists and I had a Eureka moment. We realized insurers are now putting innovation ahead of competition. Even better, insurers are also open to strategic partnerships to create new revenue models and expand their customer base. Does this make collaboration a new touchpoint in an insurer’s road map to success?
During the fourth session of our INFUSE webinar series, titled, "Partnerships: Collaboration Is the New Competition,’ the panelists -- Britt Van Dalen, senior partner, Alpha FMC, and Jakub Wroblewski, manager, Sollers Consulting, as well as Tarquini --shared insights on how to identify and find the right partners, develop new revenue streams and improve core competencies that will help accelerate growth for carriers in a competitive and evolving insurance landscape.
See also: Overcoming the Talent Crisis in Underwriting
The insurance business has become unpredictable
Once recognized for its mature business model and stable growth, the insurance industry isn’t as predictable any more. Rapid evolution in technology, economic volatility and unique customer expectations have disrupted business dynamics.
There is an urgency for carriers to innovate, find new business models and improve on existing competencies. This has given rise to more strategic collaborations, with the objective to create stability, open new possibilities for distribution and revenue and expand the customer base for carriers.
Collaboration enables a win-win-win for all.
The emergence of technology has increased customer expectations that are challenging traditional insurance models to innovate and deliver value faster and more cost-effectively. Insurers are collaborating with partners in technology, healthcare and home services and are generating a win-win-win situation for insurers, brokers and collaboration partners. One of the most successful partnerships so far is between insurance and technology.
By adopting smart solutions based on automated workflows and tasks, underwriters are streamlining data analysis, are able to deliver faster responses to brokers and ultimately are seeing increases in customer satisfaction.
For example, at Send, we recently established a partnership that lets users of hyperexponential’s pricing decision platform, hx Renew, to seamlessly connect with Send’s underwriting workbench capabilities.
See also: Why Agents and CPAs Must Collaborate
Three golden criteria for selecting a partner
There is a sincere need for pragmatism when two brands forge a strategic alliance. This is precisely why I think the three golden criteria for selecting a partner are:
- Cultural fit
- Aligned vision
- Strong expertise
These are an absolute necessity in the selection process. You’re in for the long haul, and you need to be targeted in your approach when selecting the right partners. This holds true not just for technology partners and system integrators but for the entire ecosystem, which will be at a crossroads at some point.
The future of insurance will be grounded in collaboration
The future of insurance will rely on strategic partnerships. As the insurance industry evolves, insurers must adapt and embrace new strategies to remain competitive. Collaboration among brokers, carriers and other partners is one of the keys to unlocking new business opportunities.
