Shifting and emerging market conditions are making it more difficult for P&C and life insurers to continue to operate with traditional business models. Growing competition, shifting consumer expectations, heightened regulatory requirements, and unstable economic conditions make it imperative that insurers evolve their existing business models and embrace new technologies for survival.

Key to this is building strategies for consumerization and digitalization. To stay competitive, insurers must improve their awareness of changes in consumer behavior, expectations and attitudes, including growing use of social media, mobility, channel/interaction preferences, multi-channel use, and product needs. Additionally, companies must adopt a digital business model, including managing electronic channels, content, output management, and improved data capabilities.

These two strategies are the mantra for many mid-to-large insurers in 2012 and will continue to be a focus during the next three to five years as companies make this transition. Within this transition, three themes emerge: 1) new approaches for operational improvement; 2) fulfilling customer-centricity; and 3) product excellence.