Insurance business model is over – Google is disintermediating now. . .
Here is a great blog from Insurance Networking News about the recent speed at which Google is disrupting the insurance business.
Insurance industry companies from retail, automotive, technology and others are looking to leverage their influence, their offerings, and their platforms to extend their customer relationships and experiences, which will either force traditional companies out, or force them to change. In particular, the technology companies have critical business attributes that are underpinning their rapid growth and influence:
- Customer Engagement. They are leading the disruption, re-imagination, and transformation of customer engagement models across all industries, setting higher bars for customer expectations.
- Customer Demographics. These companies are part of the daily lives of customers, from baby boomers to millennials, representing a merging of the traditional with the future to create a new generation of insurance customers.
- Digital Businesses. The companies all started, adapted, and emerged as digital-based businesses, creating customer-driven, technology-enabled, user-friendly businesses and operational models that have now become the table stakes in the digital revolution.
- Innovation Leaders. Innovation is also table stakes. The investment and commitment of resources to innovation dedicated to driving new products, services, and partnerships are redefining businesses and industries.
- Data Masters. These companies have enterprise data management strategies and capabilities that position them as innovative and transformative market leaders equipped with game-changing insights.
- Capital-Rich. They have access to internal and external capital for acquiring or investing in new technology companies that can expand market reach, deepen customer engagement, and put them at the leading edge of innovation and the digital and technology revolutions.
How Google has the advantage over traditional actuarial business models is simple – real time data (with pattern recognition) versus the batch out of date for traditional insurance. Disruption is inevitable. Here’s yet another business Google is disrupting. How many white collar workers will go from this one?