The insurance industry is going through a lot of changes in the regulatory, financial and economic sense. Mere cost-cutting is no longer improving margins like it did earlier. So, the entire industry is seeking a transformation. The rising capital requirements, emergence of new competitors, use of disruptive technologies and shifting customer needs have added to the problems. It has precipitated the need to explore business innovations within this industry, in order merely to survive. Some strategies have been identified which can help the industry players to ride through this storm. Exiting some businesses can be a wise decision as not all sectors are bringing equal benefits. Another path to survival could be through partnerships and acquisitions. MassMutual’s acquisition in 2016 of MetLife’s broker-dealer network and Sun Life’s similar foray into Assurant’s employee benefits business are key examples of this trend. One can also expand into new lines and geographies as done successfully by Sun Life, Mass Mutual and Voya. If nothing works, then one has no option but to cut costs as done by Wilton Re.

Source:https://www.strategy-business.com/article/The-Insurance-Industry-Needs-an-Intervention?gko=edb5b&sf192099579=1

Uploaded Date:16 August 2018