Transforming the Product-Service Portfolio


The property and casualty insurance industry has been slow to adopt new technologies and business models. This is despite increasing competition from tech-enabled startups, who outcompete them thanks to digitalization.

Overall, only one-third of property and casualty insurance firms are using advanced analytics to guide their digital transformations. And as of 2019, less than 10% of firms find themselves in the vision-driven quadrant. This makes these companies extremely vulnerable to rapidly changing consumer sentiment and competition across the property and casualty insurance landscape. Long-term relationships and exclusive contracts are no longer a reliable safety net. This leaves little room for incumbents as digital transformations unfold across the industry.

There is massive room for improvement and a growing sense of urgency for property and casualty insurance companies to develop an end-to-end digitalization roadmap. Such efforts would help them transform their product-service portfolio and reinvent the value-chain to remain relevant and competitive.

>Digital Transformation in a Highly Competitive Market

Top Concerns for CEOs in the P&C Industry


Property and casualty insurance CEOs have numerous concerns around the future of their industry. Here are the top six concerns that will need to be addressed by CEOs in the digital era:

Defining Alternative Business Models

Defining Alternative Business Models

Digitalization is redefining property and casualty insurance itself, with digital disruptors introducing new and lean business models to outcompete incumbents. This includes the InsurTech paradigm — i.e., leveraging real-world data when calculating premiums — and other alternative business models that augment the product-service portfolio value proposition.

Reevaluating Risk Models

Reevaluating Risk Models

Property and casualty insurance premiums are calculated based on risk modelling. As climate change and other natural disasters become more prevalent, risk models will need to change to more accurately and fairly calculate premiums for both consumers and companies.

Meeting Customer Demand

Meeting Customer Demand

As direct-to-consumer (D2C) business models gain traction, incumbents are at risk of losing market share. The “middle person” in the sales pipeline offers little added value and cutting these entities out can drive down costs. With basic insurance coverage plans, the only differentiating factor in the eyes of consumers is price, making D2C incredibly attractive thanks to its lower cost to the consumer.

Shifting Product-Service Portfolio

Shifting Product-Service Portfolio

Insurance is shifting from a product-service delivery focus to an experience-driven focus. Integrating new value add-ins to the product-service portfolio will attract new customers who seek more comprehensive packages with benefits and rewards. For incumbents, this means traditional insurance models are falling out of fashion, putting them at risk if they fail to digitalize and transform their services.

Obsolete Insurance Models

Obsolete Insurance Models

Disruptive technologies are making legacy insurance models obsolete. Digitalization is resulting in data-driven and highly personalized insurance services that cater better to specific customer needs. The “one-size-fits-all” approach of property and casualty insurance incumbents must change to adapt to shifting consumer expectations.

Acquiring New Talent

Acquiring New Talent

Property and casualty insurance talent is increasingly difficult to attract for incumbents. Traditional skillsets have lost importance, with digital skills in cloud service delivery, data analytics, and customer experience (CX) management becoming more important. Companies must educate and upskill their existing workforce or increase their focus on acquiring new talent to acquire the necessary digital skillsets for the digital era.


Opportunities and Challenges in Property and Casualty Insurance


The property and casualty industry is seeing a range of opportunities and challenges resulting from the rise of new digital disruptors. A combination of major capital investment, industry partnerships, and business consolidations are transforming the competitive landscape with tech-enabled business models and digital insurance services. This is redefining the way in which consumers manage their insurance coverage.

Born-digital property and casualty insurance competitors are free of legacy systems and workflows. This enables the adoption of telematics, cloud computing, artificial intelligence (AI) or machine learning (ML), blockchain, application programming interfaces (APIs), drones, and robotic process automation (RPA) technologies. This leads to significant cost-reductions, data-driven service delivery, and better customer experiences (CX).

Incumbents need to reinvent their product-service portfolio and continuously innovate to remain relevant and competitive. By digitalizing their operations, legacy insurance companies can leverage their existing customer base to sell new digital-first products and services, as well as to create new long-term revenue generation opportunities.


The Most Successful Digital Transformations Are Powered by Analytics Capabilities


Our benchmarking services are powered by over 1.5 million data points in addition to our primary research and data collection capabilities. With access to leaders across more than 40,000 companies in various size segments, industries, and geographic locations, we can quickly gather additional data to address how your business is performing against the competition.

A graph showing which industries are investing the most in digitalization.

Source: Trasers


Data analyzed in this report comes from 4,000+ responses. For the property and casualty insurance industry, data from 297 companies have been used.


Our property and casualty insurance industry experts can offer insights into the following sectors:

  • Vehicle Insurance Providers

  • Property Insurance Providers

  • General Liability Insurance Providers

  • Reinsurers

  • Third Party Administrators (TPAs)

  • Agencies and Brokerage Firms

  • Service Partners

  • And More

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The Property and Casualty Insurance Value Proposition


It is becoming essential for property and casualty insurance incumbents to reimagine the customer value proposition and transform their aging product-service portfolios. This is the foundation for value-chain transformation, something that agile disruptors continuously focus on, but where legacy players have failed to do so.

There is immense opportunity for P&C insurance companies to develop and implement new strategies designed for the digital era. Surprisingly, a large majority of these companies sit outside the vision-driven quadrant in their approach to digital transformation. There is a growing sense of urgency in the industry with a goal of digital transformation through continuous action. Still, incumbents have yet to demonstrate significant action in this regard.


Only 7% of Companies Are Delivering on Their Transformational Initiatives


Our research has shown that 30% of companies will fail to survive this decade due to an inability to evolve digitally. To address this negative trend, we have developed the Digital Enterprise Evolution Model™ (DEEM).

Digital Enterprise Evolution Model™

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DEEM allows our clients to recognize digital evolution patterns, implement benchmarking and prioritization strategies, and initiate application management protocols to satisfy stakeholder and market requirements.


Property and Casualty Insurance Value Chain Reinvention


For property and casualty insurers, the value chain must shift away from product-service delivery. Instead, it must focus on improving the customer experience (CX), as this is a proven way to retain customers and sustain revenues. Part of this shift should include more focus and attention on weather or climate patterns. Incumbents and disruptors alike must start learning and understanding how these events can impact insurance premium calculations or coverage to deliver a better customer experience.

For consumers, this would involve greater preventative action and asset protection, with self-protection resulting in lower premiums through data aggregation and analysis by property and casualty insurance companies. All companies must integrate these capabilities into the product-service portfolio to retain and reward customers.


Human Capital Management (HCM) in the Property and Casualty Insurance Industry


Property and casualty insurance companies are failing to leverage human capital management (HCM) effectively. This is resulting in an inability to acquire new or keep existing talent, with said talent being vital in such a tightly regulated and complex industry.

Human resources (HR) is the area with the highest planned investment in digitalization. This investment includes process digitalization and robotic process automation (RPA) to transform the efficiency and throughput of HR workflows and processes.

Digital-first startups are incredibly attractive to long-term career workers in the insurance industry, offering a breath of fresh air in terms of culture and innovative product-service portfolios. Incumbents must compete with disruptors by improving the employee experience (EX), becoming more technology-centric to attract and retain talent. Furthermore, increased personal involvement, evangelization, and transforming talent through training will be essential in building the digitally savvy insurance workforce of the future.

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Trianz enables digital transformations through effective strategies and excellence in execution. Collaborating with business and technology leaders, we help formulate and execute operational strategies to achieve intended business outcomes by bringing the best of consulting, technology experiences and execution models.

Powered by knowledge, research, and perspectives, we enable clients to transform their business ecosystems and achieve superior performance by leveraging infrastructure, cloud, analytics, digital and security paradigms. Reach out to get in touch or learn more.

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