Post on 31-Mar-2015
transcript
Trends Shaping The Insurance Industry
Eficert Conference Istanbul
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Uğur Ergün
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A brief presentation of five major trends that will shape insurance industry over five to ten
years period
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Ugur Ergun
• Education– B.Sc. in Computer Engineering– MBA
• IT Industry– Engineer, Manager– Amsterdam, Brussels, Istanbul
• Insurance– Life, Non-Life Executive– Istanbul
• Consultant, Trainer– Sabanci University Executive Development Unit– High Performance Consulting– Sales, Marketing, Strategy
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Trend 1
• Polarization– Of market
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Impact
• Low End– Standard products– Low cost– Require best operational efficiency
• High End– Superior products, services– High value– Require innovation and excellent service
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Trend 2
• Disintermediation– No value add, no future
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Impact
• Low End– Reach through internet, mobile, call center– Cost cutting pressure– Intermediaries providing just reach may disappear– Only high value adders will survive
> Financial Planners, Advisors
• High End– Demand sophisticated, personalized service– Demand intermediary providing excellent service
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Trend 3
• Data mining– Risk selection
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Impact
• Better risk selection• Better fraud prevention• Lower costs• Competitive advantage
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Trend 4
• Specialization– No more General Insurance Company
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Impact
• Economies of Scale• Alignment to customer needs• Innovation
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Trend 5
• Globalization– Was one way street– Now two ways
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Impact
• Two core competencies for Insurance Industry• Software/IT skills• Back office operations efficiency• India has competitive advantage• India may dominate the market
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Future Insurance Company 1
• High End• European• Innovative• Excellent service provider• Represent 1/4 to 1/3 of the market
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Future Insurance Company 2
• Low End• Emerging Market/Indian
– With European subsidiaries• Efficient• Excellent IT and operation skills• Represents 2/3 to 3/4 of the market
Thank You
Ugur Ergun
Ugur@ugurergun.com
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