Innovations outside the
insurance industry have
enabled consumers to
expect more, know more,
and consume more. We
live in a connected world.
Words like the Internet of
Things, wearables, drones,
3D printing, driverless
cars, artificial intelligence,
and gamification have
in our vocabulary and all
of these technologies are
converging to create a new
Change is everywhere.
New technology is more
accessible than ever. Expectations have changed,
too, and this directly
affects insurance. Consumer behavior and external influencers have an
enormous impact on the way insurance is purchased and what
is expected by the policyholder. Insurers need to be prepared to
deal with the new norm. And this is the year to get ready.
Understanding the Game Changers
SMA has identified four external game changers that have
played the largest roles as we define the new norm for insurance: proven advances in technology and data; significant capital and investment in and from new, technology-based startups
focused on the insurance industry; the global digital transformation spreading across all levels of society and industry; and
new and changing customer expectations.
The confluence of these four factors will continue to drive
disruption. And insurers can no longer hide from disruption.
We have a tendency to think about disrupters in a negative way,
but these game-changers can and should be viewed positive-
ly. For the first time in a long time, insurers everywhere have
the opportunity to level the playing field. By reassessing their
current state and planning how to change and innovate, they
can seize the advantage and become a part of the new norm.
So what can we expect in 2016 in light of these game-changing
We see the advances in technology morph almost daily.
What was considered a top of the line wearable three months
ago now has many more advanced options for people looking to
monitor activity levels (think of the original Fitbit). It’s a small
example, but it’s a good illustration of how technologies will
continue to try to one-up and out-pace each other; and SMA
predicts the trend will continue this year at a fast pace.
Time’s a Wastin’
2016 is the year to prepare for the new norm in the insurance industry.
By Deb Smallwood
Insurers everywhere have
the opportunity to level the
playing field. By reassessing
their current state and
planning how to change and
innovate, they can seize the
advantage and become a part
of the new norm.