Insurance of the Future

What will it look like in 2025?

The Belgian insurance market is mature with limited organic growth potential in core insurance. Scale, growth, and differentiation are on everyone’s agenda. Digital will fundamentally influence the sector, yet the depth of the impact, the level of disruption, and the timing remain unclear. While traditional strategic imperatives remain very valid, two new dimensions will shape the future: the ability to offer a frictionless end-to-end customer experience, and the level of openness and connectivity to other sectors.

Three business models lead the market in 2025

The current market environment is pushing the players in the insurance sector to rethink their strategies and operations. Digital is at the heart of the transformation, but there are a number of drivers reshaping the market dynamics in the sector, and this is just the start.

Choosing between an integrated (internal) value chain and an open architecture, and the ability to offer a frictionless end-to-end customer experience, will shape the future of the insurance companies.

By 2025, we see three business models leading the market:

  • Core insurer: Companies focusing on core insurance products and skills ensuring a perfect customer experience
  • Beyond insurer: Companies with additional services providing added-value for the customer
  • Exponential insurer: Companies leveraging external partnerships to grow in new markets and being part of winning ecosystems

Olivier de Groote
Olivier de Groote, FSI Industry leader, Deloitte Belgium

Exciting and challenging times ahead

While they rely on them in a different way, all three models require the same six key capabilities: data, customer centricity, technology, innovation, talent, and partnership and ecosystems management. Whatever the chosen strategy, insurers will have to make all their processes digital-enabled.

At least three ecosystems - mobility, health, and smart cities - are emerging in Belgium, representing equally opportunities and threats for the sector. Insurance companies need to keep an eye on the developments and determine how they want to get involved.

Insurance of the Future

Discussions with the CEOs of the five largest insurance companies in Belgium and CEOs from three closely related sectors (mobility, health, and smart cities), combined with Deloitte’s extensive industry expertise, form the insights in the Insurance of the Future report. Read their insights in the 21 March issue of Trends and Trends-Tendances.

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