Analysis of the Digital Direct-to-Customer channel in Insurance

Abstract

Over the last few years, continued environmental, operational, and technological changes have led to the development of multiple distribution channels in the insurance industry. As competition in insurance markets is intensifying, cost savings and customer retention has become critical, forcing insurers to look for ways to drive sales and customer convenience while keeping costs low and maintaining profitability. These factors are leading to the emergence of additional channels to reach directly to customers via call centers, mobile, and the web. The market is experiencing growth in this industry with startups competing to seize the opportunities. Digital Direct-to-customer opportunities have huge potential to improve business performance. It is imperative that the strategy for incumbents and startups in this space to consider the changing landscape to make key decisions regarding their strategy towards the direct-to-customer channel for insurance. This thesis provides a framework to navigate opportunities in this channel. The framework will guide a business professional from an established insurance company to navigate the insurance landscape of insurance, understand the existing business models and use the recommended solution approach for their business model.