Here are four key strategies mutuals can leverage to overcome challenges current marketplace challenges and achieve superior outcomes.
1. Optimizing with Technology
So much of the industry’s growth is fueled by technology and its ever-evolving capabilities. For mutuals, choosing the right tools and products is the investment an organization needs to not only keep up with the industry but to set the standard. With insurance technology spending expected to grow by more than 25 percent in the three years to 2027, harnessing the right solutions and decision-support tools is a key differentiator in the marketplace for organizations, their employees, and their customers.
Artificial intelligence (AI) is already impacting the way the industry operates, and mutual carriers’ need to be exploring the technology if they want to keep pace with their competitors. This is evidenced by the ICMIF Members AI Report 2024, which found 64 percent of respondents are already leveraging AI (most commonly machine learning) to primarily improve efficiency and customer experience. More than 70 percent of members are also investigating and/or intending to adopt some form of Gen AI technology in the next eighteen months.
Optimizing the use of AI is a key focus for carriers, but this can be easier said than done, which is why turning to partners who have already harnessed or built their own AI technology for claims management can significantly benefit mutuals.
Prioritizing innovation is perhaps the number one indicator of a forward-thinking organization. More importantly, technology supports stable, goal-driven strategies and drives mutuals’ growth with data, insights, and the capability to deliver on their customers’ evolving and unique needs. By embracing emerging technologies, mutual carriers can enhance their operational efficiency, meet customer expectations, and position themselves as front-runners in the industry.
2. Elevating Customer Experience
In an era when customer expectations are continually evolving, delivering an exceptional customer experience is essential for mutual insurance companies to thrive in the marketplace. A negative claimant experience can have far-reaching consequences to reputation, which is why it is essential for mutual and mid-market carriers to place customers at the core of their decisions concerning products and services.
One area worthy of additional focus is the integration of Environmental, Social, and Governance (ESG), which has evolved beyond regulatory compliance to become a key driver for positive customer experience. Our whitepaper, The Carrier Perspective: 2024 Claims Insights, revealed more than 20 percent of carriers say investing in ESG is providing them with a competitive edge on the back of growing public interest about how businesses impact the planet and society. In the words of one survey respondent: “Investors find it a point of differentiation and want to back responsible businesses,” while another said: “Customers want to buy from a company that cares.”
Investing in customer experience is not so much about building or paying for a new product as it is a commitment to providing consistent and reliable service. To retain and attract business, mutuals need to prioritize customer satisfaction and create a “stable state” for their customers, who should ultimately view the mutual insurance company as an extension of their team and a partner in achieving superior outcomes.
3. Achieving Growth
Continuing to grow and diversify quickly without capital restraint can be a challenge, with even the cost of keeping up to date with technology limiting for many types of companies. Mutual and mid-market carriers should be strategic in their search for cost-effective, flexible, and scalable solutions that facilitate expansion, while forging a growth strategy that sets them apart. This includes focusing on areas where they excel and considering how to best serve their customers. Whether this lies in being the best in a highly specialized line or fully serving their customers’ needs by offering multiple product lines, customers need to know they are supported and that their partner is capable of long-term collaborative growth.
4. Leveraging Trusted Partnerships
From overcoming talent shortages to diversifying operations and accessing cutting-edge technology, leveraging a trusted partner can be a cost-effective solution for mutual and mid-market carriers. For example, Gallagher Bassett’s dedicated Carrier Practice team delivers expertise across various insurance lines and industry best practices, which allows mutuals to pursue growth without needing extensive internal hiring and training processes. Finding a partner that understands and supports an organization’s unique wants and needs can be critical to achieving sustainable growth both today and, more importantly, into the future.
Connect with us today to find out more about our dedicated Carrier Practice team and how can help you achieve sustainable growth and success.
