- 76% of insurance marketing professionals say insurers are too slow at taking new products to market
- More than three quarters (78%) of insurance marketing professionals said products should be more dynamic
- Target Group develops ‘Four D’s of Insurance’ whitepaper on change and innovation in insurance to assist providers
Research released today by Target Group reveals that three quarters (76%) of insurance marketing professionals believe that they are too slow taking new products or services to market and struggle to keep pace with ever-changing consumer demands. These findings from the financial services outsourcing and software provider, Target Group come as part of the launch of its ‘Four D’s of Insurance’ whitepaper. They also reveal that more than three quarters (78%) of respondents believe that their insurance products should be more dynamic at adapting to changing consumer behaviour.
Perhaps unsurprisingly the results of the survey of top UK insurance professionals also suggest that larger organisations are less likely to be able to get new offerings to market consistently and quickly. This is highlighted by the fact that just 13% of large organisations surveyed feel they do this well enough compared to 23% of SMEs. A combination of the volume of launches, legacy product lines, legacy systems, complex structures and multiple sites are all major factors cited.
Target Group has commissioned the ‘Four D’s of Insurance’ whitepaper to offer free and relevant insight to insurers on how to be successful and innovative in dealing with the significant challenges of developing products within the evolving insurance landscape. One key aspect of the findings is that there is a very real need to develop products that are dynamic and effectively harness the wealth of data now at an insurer’s disposal to secure a competitive advantage and meet customer demands.
John Miles, Product Manager, Insurance at Target Group, says: “For an industry focused on future risks, insurance companies can be slow to adapt to future challenges. We are in the midst of an innovation wave driven by the four d’s of insurance - dynamic products, changing distribution patterns, the use of data and disruptive new technologies. For insurers, underwriters and distributors it brings the promise of both threats and opportunities. It offers the potential for new products and growth, aligned with greater customer insight, the ability to tailor products and pricing, as well as the prospect of radically transforming interactions between market participants.”
Miles continues: “Due to a number of prevailing factors customers are showing signs of becoming ever more brand agnostic in respect of their purchasing behaviour and are demonstrating an increasing willingness to purchase cover from other large recognisable and customer-centric organisations like Google, Amazon and Tesco rather than just traditional insurers. Clearly this poses a threat to current business models and illustrates the need for new strategies. Innovation and agility will determine the insurers who will win the new race. Slow adopters will inevitably fall behind.”
Miles concludes: “However, those insurers that remain innovative and develop products consumers want in the way they want them at a time they want will have a bright future in this brave new world. Our whitepaper demonstrates that many insurers are only at the start of that journey and we hope offers some strong insight for successfully navigating the road ahead.”