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Hi, my name is Chris Freese,
and I'm a senior partner and global leader
for Digital Insurance at BCG.
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I've worked with the insurance industry for over 25 years,
and one thing is clear: insurance used to be pretty simple.
You had the customer and the insurer,
and usually, an agent served as an interface
and helped if there was a claim.
But in the digital world, these relationships
are being disrupted, and insurance customers
will have new ways to buy the protection they need.
Think of all the options that consumers today have
at their fingertips.
I can find out anything I need to find out
and buy anything I'd like to buy
through a few clicks on my phone.
I don't have to go out of my way
to get these things; they're waiting for me.
The expectation of ever-increasing convenience is going
to mean big changes for property casualty insurers.
In many cases, their ability to sell directly
to consumers is going to disappear.
Instead, the insurance sale will be made
by a product or a service provider.
The online retailer already selling me my smart TV
or the OEM already selling me my car,
the insurance will be embedded within the process
or in the product I buy.
In many cases, consumers will prefer this way
of buying insurance since they won't have
to go out of their way or make a second decision
about how to protect their purchases.
Retailers know about my shopping behavior
and can offer me insurance exactly when I need it.
Car manufacturers know about my driving behavior
and can provide me with tailored protection.
As insurance becomes an embedded service,
the opportunities in the market will change.
We see a new ecosystem taking shape
with three types of players.
Orchestrators will have the direct tie
to the customer and provide access to a variety
of services provided by integrated partners.
Think of how Amazon connects multiple packaged goods
and entertainment companies, and you have a sense
of orchestrators' and partners' different roles.
Finally, there will be B2B enablers.
This is a role that most P&C insurers should consider.
It means reshaping insurance offerings
so they can be seamlessly offered
as part of another sale stream.
We think of the product that will be needed
as insurance in a box.
It's a new beginning.
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