Insurers can grow by adopting the mindset of disruption as a focus on improvements on, rather than wholesale replacement of, processes and workflows.
The concept of disruption is often associated with replacement, like Uber replacing taxis and Airbnb replacing hotels. However, the true essence of disruption lies in improvement rather than substitution. All companies—from startups to legacy institutions—should consider themselves disruptors to grow continuously.
Insurance is a perfect example of how disruption went from being a term meaning replacement to one focused on improving processes. Initially, insurtech companies aimed to replace insurance agents. But customers still valued the advice and guidance agents provided. The insurtechs then adjusted and pivoted away from replacing agents to improving agent capabilities with digital tools to enhance manual processes.
To adopt a disruptor mindset, companies can follow these steps:
- Let customers guide you: Embrace customer feedback and be willing to adapt to evolving expectations. Companies like Amazon and Netflix started with narrower focuses and expanded based on customer needs.
- Small changes matter: Disruption doesn’t always require monumental shifts. Small changes to established technologies, such as introducing transparency to AI fueled solutions, can have a significant impact.
- Diversify approaches: Don’t limit your strategies to the expertise of current leaders. Perspectives from other experts, even those without direct industry knowledge, can drive innovation.
- Always be innovating: Always look ahead and ask, “What’s next?” Create a forward-looking roadmap that prioritizes customer needs and encourages the entire team to contribute ideas.
Read the full article in Forbes.