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Unlocking hidden opportunities in P&C insurance

Sluggish global growth. Digital disruption. Changing customer expectations.

As cost and profitability pressures continue to drive transformation, the insurance sector, like most industries in Canada, is entering a new normal. 

Carriers have already taken some immediate actions to improve operations, such as updating remote working policies, actively managing capacity ahead of a spike in customer and agent requests and ensuring adequate availability of third-party services. They’re also taking actions to control costs, like proactively managing their claims environment, accelerating digital capabilities and reassessing portfolio risk and pricing strategies. These short-term, more tactical initiatives offer a good platform for more strategic changes to reach customers in new and meaningful ways.

One of those strategies is product redesign. P&C insurance continues to evolve from providing generic coverage to tailoring products to personal needs. People are at home more, spending more on e-commerce and less time driving. Customers are experiencing supplier and construction delays, changing distribution strategies, increased cyber threats and, in the case of medical professionals, heightened exposure. All of this is increasing demand for commercial property, cyber and professional liability products. As businesses continue to reopen, return to financial stability and look to expand business interruption coverage to address additional risks, property and casualty insurance is poised for change and growth.

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To maintain their competitive position and unlock growth, property and casualty (P&C) insurers are not only looking for new efficiencies, but they’re also exploring opportunities for investment.

Get a competitive advantage with redesigned, personalized products 

This changing environment gives you an opportunity to create new value and increase customer loyalty and digital engagement through more tailored product offerings. Are you following others’ lead and providing only base coverage offerings with rigid optional endorsements that remain the same across systems and brands? Or are you challenging the competition by offering flexible products?

Leaders will adapt their offerings through personalized products based on modular policies that meet their clients’ needs in real time.

Graphic Illustration (follower, challenger, leader)

Three steps to a market-ready, customer-focused product strategy

Number one

Understand your customer

Understanding how customers’ individual needs vary is the first step to offering successful personalization. Assess the impact of market changes on your target segments, conduct needs assessments to refine your offerings and identify opportunities to introduce new products.


Number two

Design your target portfolio

Once you understand your customers’ needs, you can refresh your portfolio through holistic and targeted product changes. Identify modular coverage and endorsement options for each product line and create a sustainable pricing model that can be refreshed in real time to properly account for the risk underwritten.

Number three

Plan for execution

The last step is to introduce the new strategy to your customers. Ensure you adequately equip your underwriting departments to keep control over the refreshed product suite. Confirm your distribution and marketing strategy and track performance so you can quickly adjust where required to ensure you’re getting the anticipated value.

But it’s not enough to build and deliver the product. To ensure success, you’ll also need to look at your organizational structure, capabilities and culture. Ask yourself whether you have the right technologies to modernize your underwriting and pricing functions for your new structure. Think about whether you have transformed your people and culture to respond to increased real-time customer demands in a way that lets them pick and choose their coverage options to satisfy their needs.

By taking a customer-led approach to product redesign, you can position yourself for future growth. You can get started now by tapping insurance tools and accelerators that can help you perform accurate customer segmentation, consolidate product information in a format ready for your policy system and accurately price risks associated with new coverage.

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For P&C-specific insights on COVID-19 or to learn more about how product optimization can help your organization be fit for growth.

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Contact us

Keegan Iles

Keegan Iles

Partner, Insurance, Consulting, PwC Canada

Tel: +1 416 815 5052

Denise Cheung

Denise Cheung

Director, Actuarial Services, PwC Canada

Tel: +1 416 687 8618

Jessica Lewis

Jessica Lewis

Director, Consulting - Financial Services, PwC Canada

Tel: +1 416 687 8794

Alodie Brew

Alodie Brew

Partner, National Insurance Leader, PwC Canada

Tel: +1 416 947 8957