The unprecedented market volatility ushered in by COVID has shaken the underlying stability of many business sectors to their core and the insurance sector has found itself lacking immunity to these challenges too. When planning for the new normal, is must be considered—is organic growth or acquisition the smart strategy? If you are an insurance company the latter might be your best bet.
Even with healthy reserves, a perfect storm is brewing for the insurance industry. A heightened volume of personal, travel and business claims combined with payment deferrals and other business losses are threatening some organizations to the point of collapse. To survive, insurance leaders are rethinking their existing operational models. For some, the idea of mergers or acquisitions might be the only way out of these tough times.
When exploring potential transformational change, insurance leaders should consider the following:
- Digital innovation done right is critical to gaining competitive advantage. Explore partnerships with technology experts and/or other technology savvy insurance organizations experienced with innovative solutions as part of their portfolio offerings.
- Develop an integration blueprint that delivers optimal synergies to both parties and ensures that security and safety measures are strictly—especially due to sensitivity of clients’ data during these times.
- Reevaluate existing operational processes. Streamlining legacy processes will help companies gain competitive edge and accelerate the speed of serving existing and future clients.
- Improve the client experience. Consumers continue to expect more and better service from the companies they do business with. In the case of mergers, seamless integrations are a must.
At ScriptString, we believe that our glass is always half full and that disruption presents new opportunities—if you let it.
Get in touch to explore opportunities for your own transformational change today.
