An article published on thestreet.com states, "Many think that the insurance sector is ripe for new business models that bring operational efficiency to what could be considered a bloated, bureaucratic industry with high overhead costs."

The author was referring to the potential for disruptive business models emerging in the insurance industry, such as peer-to-peer insurance, self-insuring and risk pooling. The genesis behind many of these new models are changes in how people buy insurance, how they want to engage with insurers, and how their needs for insurance are changing (and the insurance market, too — driverless cars, anyone?).

But the death knell for traditional insurance companies has not struck yet. While it's far too early to tell if any of these new models will be truly disruptive, many industry leaders have been stepping up efforts around innovative product design as well as streamlining and digitizing their operations. In fact, many insurers are making strategic investments in or underwriting those disruptors.

Millennials, carriers pose distribution challenges for agencies

More challenging are the trends in how people buy insurance. A 2015 Gallup poll noted that millennial insurance customers (those aged 25-34, representing the largest generational percentage group of the U.S. population) are the most likely to be "actively disengaged" with their insurance company. According to the survey, millennials were more than twice as likely to buy insurance online.