By: Luke Jones, Published on December 29, 2017 01:33 PM, Last Update on December 31, 2017 10:35 AM
An insurance expert says the industry should be just has concerned of outside competition as they are internal disruption.
Many insurance companies will see other providers in the insurance industry as a main competitor, but what about an outsider disruptor? Bobby Lehane, CEO, CHU Underwriting Agencies says insurance companies must look to the outside for a proper market perspective.
He cites noted industry disruptors such as Amazon and Uber as examples of how insurance could be impacted from the outside. One obvious example could be from vehicle manufacturers, who could develop their own insurance products when autonomous vehicle technology expands.
“Our largest threats aren’t necessarily going to come from within insurance,” Lehane told Insurance Business. “Imagine the impact Amazon is likely to have on retailers over the next few years. Who is our Amazon? Our Uber? Our iPhone?
“That is a question we regularly ask, aside, of course, from not being complacent about our existing competition.”
Companies already in insurance must work with the mindset that threats could come from anywhere.
“You have to accept that not everything is going to work perfectly; accept that things will miss the mark occasionally, but you learn from this and move on stronger,” Lehane added.
Lehane believes companies should not underplay the role technology will have on changing the industry.
“We really are on the cusp of a significant transformation to traditional business models in insurance. Not all of us will survive. While much of what we do cannot be replaced by automation, much can,” Lehane noted.