Developing new business models for intermediaries in the insurance sector

This paper focuses on future developments in society in general, and in the insurance industry in particular, and the development of business models that can be used to reinforce the position of intermediaries in the insurance value chain in a time when they face uncertain technical, marketing and regulatory developments. This paper attempts to integrate trend and scenario analysis with business model design, in an industry sector where innovation is slowly taking off. By combining trend analysis and an 'outside-in' scenario methodology and business model design, we design strategic options and new alternative business models. On the basis of trend analysis we defined two major axes for the scenario analysis: the level of regulation and the adoption and use of Information and Communication Technology (ICT). Based on these axes we developed four scenarios. We assessed the impact of relevant developments outside for each scenario. General developments are leaner government, and increasing use of new ICT-applications, while developments within the industry include channel competition and the implementation of the (Dutch counterpart of the) Financial Services Act. We have analysed the demands on management resulting from these developments, derived strategic options and designed illustrative business models.