Redefining Insurance: A Scenario-Based Analysis

Celent has released a new report titled Redefining Insurance: A Scenario-Based Analysis. The report was written by Michael Fitzgerald and Juan Mazzini, senior analysts with Celent’s Insurance practice.

Key research questions:

  • What dimensions should be considered when performing insurance scenario analysis?
  • What if insurance products change from a value proposition based on indemnity to one of avoidance?
  • How should insurers prepare for these and other scenarios?

New York, NY (Oct. 25, 2016) – Rising customer expectations regarding digital service delivery, numerous advances in technology, and threats from entrants from the startup world are pushing the pace of change in insurers. This report details a scenario planning model that can help insurers extract clarity from confusion. It then presents the results of a workshop with insurance professionals on a specific scenario.

Given the pace and consistency of change, insurers should adjust their planning methodologies accordingly and consider the use of scenario planning. Leading insurers are embracing continuous innovation as a new corporate capability. Scenario planning can be a tool to develop organizational consensus about the priorities for change.

“The interactive nature of the scenario planning process demonstrated a general agreement regarding the urgency to change the insurance model from one of indemnity to one of avoidance. Participants feel that this change is inevitable and a near-term opportunity/threat,” commented Fitzgerald.

“Scenario analysis is especially impactful for insurers because the industry is based on very old assumptions about how the world operates, the nature of business, and risk. The digital storm that defines this decade modifies these assumptions,” said Mazzini.

Click here for the table of contents or to purchase the report from Celent.

About Celent

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies (NYSE: MMC).