International accounting and consulting firm Pricewaterhouse Coopers has issued a report on the future of the property/casualty industry, which examines the competitive landscape and “identifies the key drivers determining which non-life insurers will lead and survive in the new marketplace.”
“Tomorrow’s Leading Non-Life Insurer (TLNLI) proposes three optimal business models for the non-life insurer of the 21st century,” said PwC. It identifies them as: –“The Invisible Insurer, which will leverage the brands of other financial services providers through alliances and joint ventures; — The Friendly Bank, provider of integrated bank insurance products to corporate and retail customers; — The Fixer, provider of tailored coverage to the retail sector using e-business platforms to deliver service at competitive cost.”
The report, which PwC says included a survey of over 210 senior p/c insurance executives in many countries, stresses the necessity of adapting to modern technology, the strategic use of alliances and the value of “branding” as being extremely important.
John Scheid, partner and Americas leader, Global Insurance Group, commented on the findings, stating, “In today’s environment of pressure on profitability, insurers must find ways to streamline operations and make them cost effective, but they must also exploit the power and potential of the Internet, in addition to responding to deregulation of the financial sector.”
“As ordinary insurance becomes increasingly commoditized and customers more demanding,” Scheid continued,” companies will need to emphasize service and branding to differentiate their products and themselves.”
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