Of all the client industry segments we focus on here at Consulting magazine, the insurance industry is the one that has probably gotten the least attention.
In the seven-plus years I've been here, other industry sectors such as healthcare, financial services, public sector, energy, retail and manufacturing all have been on the front burner for stretches of time, usually due to some type of crisis.
Insurance has had a few crises over the last few years, too. Hurricanes, floods, fires and Superstorm Sandy to name just a few. But these are more localized events and don't merit the attention other sectors have received. And so, insurance flies below the radar. Aside from some of the catchiest commercial campaigns out there—Jake from State Farm, Flo from Progressive, Mayhem from Allstate and the Geico gecko—the insurance industry often exists in relative obscurity.
Until now. As this month's cover story points out, the insurance industry is accelerating toward a global transformation with megatrends, regulations, changing demographics and technologies, as well as new products and new models, all of which are dramatically altering the landscape.
This is no longer your parents' insurance industry. The rules are changing right before our eyes. And, as is usually the case in a major industry transformation, it's being driven mainly by management consultants.
As much as anything, the changes are being driven by demographics. Gen Y and Millennials simply aren't buying anything—let alone insurance products—they way they've been sold for decades. And they almost certainly won't buy as many as previous generations, especially Baby Boomers.
And then there's the new products, such as cyber insurance and "telematic" offerings that allow for usage-based pricing, with the potential to propel the industry to new heights.
Read all about the role consultants are playing in the industry's transformation. Then warm up that front burner.
Joseph Kornik
Publisher & Editor-in-Chief
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