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Insurance 2030: Preparing for Fundamental Change

New SMA Blog by Mark Breading, Partner, Strategy Meets Action

There is little doubt that the P&C insurance industry is transforming. The so-called disruption touted by InsurTechs and others has not hit full force, but there is a coming tsunami of change that will be driven by outside forces. Technologies such as AI/machine learning and the Internet of Things are already prominent in insurer strategies and projects. The demographics of the insurance workforce are shifting and will drive many changes over the next decade. New technologies in the digital, connected world promise to change the risk landscape – in some cases dramatically reducing risk, and in others introducing new risks. There is much experimentation with products today, addressing the sharing economy and on-demand, episodic, and parametric types of coverages.

This raises questions in many senior executives’ minds about the nature of the insurance business in the future. Will change really be dramatic, or is it over-hyped? How will it affect the lines and segments of an individual company? Lacking a crystal ball, it is very useful to employ a scenario planning approach, developing and evaluating several possible future scenarios in the context of a specific insurer’s business. While some may view this as an academic, blue-sky exercise, it typically yields surprising insights that serve to inform short-term and mid-term strategies.

Naturally, these types of initiatives should not be done in a vacuum. A realistic assessment of the current state of the company is a good starting point: the products, people, processes, technology, and other dimensions of the existing model. The intent is not to scrap existing strategies and plans, but to layer in new strategies over time that position for the future. Ultimately, every insurer needs to build and execute along their transformation journey or fine-tune and enhance their journey plans based on new insights.

What will insurance look like in 2030? We humans have proven to be bad at predicting the future. However, in an era of rapid change, successful companies are those that create a culture and an infrastructure that is adaptable, enabling them to seize new opportunities as the world changes.

For more information on scenario planning and the development of digital transformation plans for insurance, read the recent SMA research report, Insurance 2030: How Technology is Transforming the P&C Landscape.

Insurance 2030: How Technology is Transforming the P&C Landscape

How much will the P&C industry transform by 2030? How will different segments be affected? Will risks change substantially? Will distribution, products, underwriting, claims, and other areas be dramatically different? No one has a crystal ball, but how the industry evolves and potential scenarios for the future are worth exploring. This report raises some interesting questions, assesses the current state of the industry, and proposes a strategic planning approach – not just for the sake of pondering the future, but to determine pragmatics steps to take today on the transformation journey.

Progress on the transformation journey for key initiatives (SMA)

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

About The Author

Mark Breading, a Partner at Strategy Meets Action, is known for his insights on the future of the insurance industry and innovative uses of technology. Mark consults with insurers and technology companies on forward thinking strategies for success in the digital age. His inventive methods and his ability to incorporate InsurTech and emerging tech into business strategies are unparalleled. Mark also leads SMA’s research program, has overseen the publication of over one hundred research reports, and directed custom research projects for insurer and tech clients. His thought leadership in the areas of InsurTech, emerging technologies, customer experience, and digital strategies has earned him rankings as a “Top Global Influencers in InsurTech” by InsurTech News and Onalytica and a place in the 10 finalists for the “Top Global IoT in Insurance Influencer Award.”

Before joining SMA in 2009, Mark spent 25 years with IBM, where he co-developed IBM’s Account Based Marketing program and led the global project office to implement ABM across all industry verticals worldwide. Mark has held both technical and business roles in sales, consulting, marketing, and business strategy and has advised insurers around the world for almost 30 years.

He is a frequent speaker at industry events; an InsurTech mentor with the Global Insurance Accelerator; and a frequent contributor of articles to Insurance Thought Leadership, Insurance Networking News, LOMA Resource, and many other industry publications.

About SMA

Exclusively serving the insurance industry, Strategy Meets Action (SMA) is an advisory services firm offering retainers, research, consulting, events, and innovation offerings to both insurance companies and solution providers. Learn more about SMA at

SOURCE: Strategy Meets Action (SMA)