One of the truly catchy tunes from late in the 20th century was “Closing Time,” where Semisonic popularized a quote usually attributed to the Roman philosopher Seneca the Younger: Every new beginning comes from some other beginning’s end. With less than two months left in 2022, we’re hurtling to the conclusion of a year that many will likely want to forget. At the same time, we’re racing into 2023 and the new challenges and opportunities that insurance carrier IT organizations are preparing for.
The challenges from the pandemic, which is hopefully receding into the rearview mirror, remain top of mind. Now, carriers are greeted by marketing opportunities which look very different from what existed in the “before times,” as even the youngest baby boomers approach retirement eligibility, the oldest millennials are poised to pass their 40th birthdays, and Gen Z is emerging into the labor force with surprising speed.
Each generation has its own set of needs and aspirations, and the traditional life events which have created needs for protection and investment products have changed substantially. Companies that have built their financial strength and reputations on business models that effectively delivered one-size-fits-all solutions are already finding they are at risk of living in a world where one size fits none. As many other industries have already found, surveying their business from a customer’s perspective is ultimately critical to long-term success.
At the same time, carriers are facing fundamental changes in the relationship between product manufacturing and the distribution functions that support them. For more than 40 years, the drive to decompose business models has been underway. Now, with distribution partners consolidating to create economies of scale of their own, market power is shifting, too. Carriers need to rethink how they want their own business models and product offerings to shift to best take advantage of the back half of the current decade.
Further complicating the current environment, carriers are needing to address changes in their own labor forces. The Great Resignation is cutting across multiple generations, talent management is taking on increased urgency, and a new realization is emerging that knowledge management is something that will be vital to long-term success.
The end of one year is allowing us to consider what’s ahead in the new one. While there’s uncertainty on many levels, there are also great new opportunities as we accelerate out of the pandemic era. There’s no time like the present to get ready for our next new beginning. If you’d like to discuss planning for that new beginning, please let me know at [email protected].