The insurance landscape is constantly evolving, and mutuals and mid-market carriers are experiencing growing pressure to maintain pace. From the increasing threat of cyberattacks to the battle for talent, regulatory complexity, and rising customer expectations, the demands have never been higher.
Here, we explore five of the most pressing challenges mutuals and mid-market carriers face today and how leveraging strategic partnerships can turn each challenge into a competitive advantage.
Cyberattacks and Data Breaches
In recent years, the insurance industry has witnessed a growing number of data breaches and cyberattacks, threatening businesses with costly ransoms and significant reputational damage. For mutuals, these threats are compounded by the intertwined interests of their policyholders.
However, prioritizing cybersecurity presents its own challenge, being both costly and time-consuming. Engaging an expert in claims and risk management can help your business mitigate cyber risks while keeping costs manageable through the implementation of robust IT security controls, internal training against common cyberattack techniques, and the provision of access to fully vetted vendors, such as forensic data professionals who develop cybersecurity and remediation plans.
While prevention and crisis response planning are vital and invaluable, the increasing sophistication and accessibility to hacking software means that the odds of ending up on the wrong end of a cyberattack have become significantly higher. For mutuals and mid-market carriers, this makes having immediate access to an experienced team of attorneys that specialize in the management of breach counsel a critical resource, minimizing losses and keeping brand reputations intact without the expense of full-time, in-house legal counsel.
Talent Retention and Attraction
Retaining and attracting talent continue to be key challenges across the insurance industry. For mutuals and mid-market carriers, leveraging a trusted partner can be a cost-effective solution for overcoming talent shortages and diversifying your businesses with enhanced resources and skill sets.
This strategy empowers a partner to recruit staff with transferable skills and invest in superior training and development programs, all to the carrier’s benefit. With access to a pool of highly skilled professionals, mutuals can tap into the expertise of a third-party provider without needing extensive internal hiring and training processes.
Evolving Customer Needs
In a crowded insurance marketplace, customers expect accuracy, efficiency, and service excellence. As a result, mutuals must streamline their claims processes and ensure they are able to handle complex claimant needs efficiently to maintain a competitive edge.
Strengthening internal processes and productivity with minimal capital investment is the gateway to becoming a dominant force in the marketplace. At Gallagher Bassett (GB), our mutual partners harness the power of our team to increase efficiency without sacrificing the quality of service their clients expect. One of our core philosophies is our commitment to collaboration: We build a deep understanding of customers’ pain points and opportunities, helping you deliver service excellence to your customers through time- and cost-effective methods.
AI & Emerging Technologies
In many ways, emerging technologies have made life better for mutuals and mid-market carriers, making significant improvements to streamlining operations while simultaneously enhancing customer experience. As popularity has grown, AI and emerging technologies have become essential tools required to stay ahead of the curve, presenting a challenge due to the fast-paced evolution of these expensive systems and solutions.
GB offers a suite of digital innovations to help its partners stay ahead of AI and emerging technologies, such as our award-winning Luminos RMIS system with advanced risk management capabilities, SMART benchmarking, and predictive analytics tools. These tools ensure mutuals stay aligned with industry insights and gain visibility into operations, top-performing lines, and trends in claims and customer behavior.
The ability to leverage the cutting-edge technology and expertise of a partner like GB is one of the key benefits of outsourcing for mutuals and mid-market carriers that are committed to maintaining profitability without sacrificing the strategic advantages of consistent innovation.
Changing Regulations
Introducing new products and lines of business is crucial for mutuals and mid-market carriers looking to gain a competitive edge in the industry, and compliance is an important component to this strategy. In an ever-evolving regulatory landscape with new laws being introduced regularly, maintaining compliance can be a real challenge for mutuals with limited resources and little margin for error. From financial losses in the form of fines, penalties, and license revocation to reputation and brand damage, noncompliance can majorly impact a business’s revenue, customer confidence, and future talent recruitment.
Partnering with specialized experts who are well versed in the highly nuanced nature of the regulatory landscape and unique industry requirements can help alleviate legal pressures, ensuring your business remains compliant, adaptable, and agile while freeing up your staff to focus on strategies that will advance your business.
Whether it’s safeguarding data, expanding capabilities, or staying ahead of industry trends, GB’s Carrier Practice team is uniquely positioned to act as an extension of your business. Connect with us today to find out how our dedicated Carrier Practice team can empower your team to lead with confidence and deliver service excellence.
