The property and casualty (P&C) insurance industry must respond to economic conditions and evolving customer preferences by transforming operations and embracing new ways of working. BCG draws on deep industry knowledge and digital capabilities to help insurers adapt and thrive.
As the P&C insurance market changes, insurers must embrace new strategies and ways of working as well as accelerate investments in digital and analytics. Although P&C insurers have maintained solid capital positions, a protracted recovery from the recent economic slowdown could affect them for some time. In addition, they must appeal to P&C customers who want to receive more personalized services and do business online. They also must contend with well-funded insurance technology competitors that are disrupting standard business models.
Retail P&C insurers must satisfy customers who are more conscious of brand and value and who are more willing to research and purchase insurance online, switch insurers, and buy from nontraditional providers. On the commercial side, providers must contend with more complex supply chains, value chain disruption, and market developments, including increased cyber risks and regulation. A competitive market is also pushing partnerships and larger M&A deal sizes.
To adapt, retail and commercial insurers must:
BCG helps P&C insurers transform and work more efficiently to reduce costs and improve the value they deliver to customers and shareholders. We do this by identifying the strategies, partnership agreements, technology investments, and M&A deals that spark growth. We work with clients across the insurance value chain, including product development, sales, underwriting, claims, payments, and customer service. BCG combines digital transformation expertise with knowledge of strategic workforce planning to help clients adopt agile at scale and future-proof their workforces.
Our approach to P&C insurance consulting is built on our understanding of the non-life-insurance business. That comprehension was developed in part through our work with some of the world’s preeminent insurance players, our knowledge of industry sectors and regional markets, and our partnerships with leading clients through enterprise-wide transformations. BCG senior consultants with deep industry experience, including experts who previously worked for top P&C insurance companies, also contribute to our insight.
We combine our P&C insurance consulting capabilities with a set of proprietary tools.
The nine levers that we developed from our extensive insurance industry experience help insurers close their digital maturity gap, better serve customers, and become bionic.
Our P&C industry consultants work with BCG TURN experts to deliver the kind of short-term impact and longer-term transformation that companies need to emerge as winners from down markets.
Our Insurance Excellence Benchmark gauges performance on key dimensions, such as customer centricity and digital readiness. It uses a variety of data to help insurers identify and close competitive gaps.
The Digital Acceleration Index analyzes insurers’ strengths and weaknesses in order to prioritize areas for improvement and accelerate digital innovation.
Our property and casualty insurance consultants also work with BCG specialty businesses, including:
Connected devices are becoming ubiquitous in the industry. It’s time for commercial property and casualty insurers to seize this opportunity.
Companies that embrace AI at scale, expand their digital platforms, and optimize their distribution economics will emerge from the COVID-19 crisis stronger.
Insurance companies that make targeted, bold investments in digital initiatives see quick returns on revenue generation, cost containment, and customer satisfaction.
With Lighthouse from BCG, you can beat the competition by gaining a deeper understanding of customer demand and behaviors.
The COVID-19 pandemic—along with the new reality taking shape because of it—has created a clear mandate for insurers: deal with the rigors of the present and the near future while starting to prepare for challenges and opportunities over the longer term.
BCG’s Christopher Freese explains the nuances of embedded insurance. The digital world is disrupting previous insurance relationships to offer big changes through ever-increasing convenience.
