Signals of change     |     Shifting business models     |     Strategic imperatives and impacts     |     Our approach     |     Contact us

The pace of change is quickening. The scope of change is broadening. And the impact of change is becoming increasingly disruptive. For personal lines insurers, the future has rarely been so uncertain.

The signals of change are everywhere: in the unpredictable economic uncertainty that continues to trouble national and global markets; in the rapidly shifting expectations of customers; in the rising importance being placed on the ESG agenda; in the innovative new models and technologies being brought to market; in the evolving competitive environment; and in the continuously-changing regulatory landscape.

Yet — as insurers know well — uncertainty and risk can create opportunity. And there is no lack of opportunity in today’s market, particularly for those who understand how the landscape is changing, what new models are emerging, and how they can harness these changes to create their own winning operating model of the future.

This report outlines KPMG’s vision for the Future of Personal Insurance. Over the following pages, we explore how these forces of change are already creating competitive opportunity for insurers. We look at the winning business models of today. And we describe some of the emergent business models we believe will drive success in the future.

But it’s no good knowing where you want to go if you don’t know how to get there. So, we have provided readers with a clear approach to driving transformational change by adopting a connected operating model. Supported by a list of key capabilities required to enable change in the personal insurance sector, this report offers case studies, evaluations and next steps to help personal lines insurers take a proactive and practical approach to transformation.

We hope this report provides personal lines insurance leaders and stakeholders with the insights, ideas and frameworks needed to look beyond today’s uncertainty and build a winning and connected operating model for the future.

Becoming a Connected Insurer takes commitment and determination. To truly serve the personal insurance segment, achieving it has become more important than ever before. It is the key to providing personal insurers with the dynamic and flexible value they need.

Signals of change

Signals of change : The Future of small business commercial insurance
Future of personal insurance quote

Shifting business models

People’s lives have been disrupted. And their expectations have changed dramatically. The impact on personal lines insurers will be transformative.

Understanding how the world is changing — and which forces will influence your future operating model is not easy. There are many ‘signals of change’ flashing on the horizon; each will impact your future business and operating models, but in significantly different ways. Indeed, success in personal lines insurance going forward largely depends on how firms respond to each of these signals.

The big question facing personal insurers is how to stand out. What proposition do we offer customers that distinguishes us from our competitors in the market?

Emergent business models of the future

In the future, we believe three personal insurance models are likely to dominate the market


Purpose-led insurer: Customers want to work with insurers that put their purpose at the core of their proposition.

We expect to see peer-to-peer solutions continue to connect like-minded customers, driving greater loyalty and behaviors that reduce claims costs (a win-win for customers and insurers alike). Price and product information will become easier to understand and claims service will become simpler, quicker and fairer — thereby creating value around transparency. Customers will expect to see ESG at the heart of the purpose so they can assess how their insurers are responding to current global challenges and issues.


Scaled and diversified insurer: Price will remain a key purchase driver. Insurers will need to be relentless in building a low-cost model.

Meeting the changing expectations of customers (which are being influenced by experiences in other sectors) will require insurers to create end-to-end digital insurance models that enable customers to transact conveniently and easily. At the same time, insurers will need to reshape and re-size the front, middle and back-offices from end to end to drive cost reduction and more competitive pricing. We expect those who are able to transition away from legacy systems and processes at pace will be the biggest winners in the future.


Agile and focused insurer: Data will become a critical asset that will differentiate insurers from their peers.

Real-time data analytics will allow insurers to deliver coverage that anticipates customer needs and ensures suitable products and services are offered. Increasingly sophisticated pricing will help insurers more accurately assess their risks while also ensuring better customer outcomes through a clear focus on value for money. New sources of data will be used to support claims prevention and to enhance claims response. And, in doing so, insurers will help build customer loyalty and enhance their ability to cross-sell.


Strategic imperatives and impacts

In order to deliver on these strategic themes, KPMG professionals have identified eight capabilities that, together, align the operating model to focus on delivering value to the customer and the business. These are cross-functional and apply across the operating model.  Our recent research conducted by Forrester Consulting found over half (52%) of respondents are investing in at least six customer-centric capabilities.

Eight capabilities, twice as likely to succeed

The eight capabilities of the KPMG Connected Enterprise deliver tools, methods and frameworks to achieve a new, better business-as-usual with agility and accelerated innovation.

These capabilities help retail businesses define a customer-centric approach to digital transformation that connects the front, middle and back offices, which will be of critical importance to navigate the future Consumer Commerce landscape.

Base: 1,299 professionals involved with customer-centric strategy decisions
Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, September 2018.
  • 2xImpact


Our approach

Each of the eight enabling capabilities are underpinned by a set of sub-capabilities. The first step in defining a winning model is understanding your relative maturity in each against the required maturity to deliver your winning business model. KPMG firms offer three levels of maturity diagnostic depending on the needs of your business. Contact your local advisor today.

With the customer at the core, there are five critical questions retail banks should ask themselves:

  1. Are you connecting your customers with compelling value propositions, opportunities and interactions?

  2. Are you connecting and empowering your employees to deliver on the customer promise?

  3. Are you connecting your front, middle and back offices to execute the customer growth agenda?

  4. Are you connecting your ecosystem of business partners to jointly deliver on commitments to customers?

  5. Are you connecting to market dynamics and digital signals?




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