Objects In Mirror Are Closer Than They Appear

We have all seen the statement that “objects in the mirror are closer than they appear’ and most every driver knows the statement is true. In fact, if the speed of the oncoming car behind us is faster than we are driving, the object will soon past us.

But what about objects just over the horizon that we’re not ready for? Are they closer than they appear? And if so, how do we determine what they are and get ready to deal with them?

The history of the insurance industry seems to show that insurers do not quickly respond to either objects behind them or to the soon-to-be-revealed objects just over the horizon. For insurers, objects just over the horizon include shifting demographics, changes in ethnic composition of their target markets, asset / liability matching and realizing how the impact of other industries applications of technology reshape the expectations of both policyholders and producers.

Objects from behind insurers include competitors from the insurance industry, the financial services industry more generally, other industries and even prospective policyholders themselves. When considering who their competitors are, insurers must continually keep in mind that it is both current and emerging customer needs that reshapes the competitve terrain. The old expression that people don’t want a 3/4 inch drill but a 3/4 inch hole continues to strongly resonate and should provide guidance to insurers who consider only other insurers in their specific segment as competitors.

What objects – either from behind or just over the horizon – should your company be ready to respond to competitively succeed?

Published in: on November 23, 2009 at 6:44 pm  Leave a Comment  

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