The commercial insurance and reinsurance markets are undergoing dramatic change as the linear value chain of the past is evolving into a dynamic value exchange. Product and service innovation, renewed purpose, increased automation and digitisation, more sophisticated analytics, a retooled workforce and the expansion of ecosystems are among the most powerful forces that will reshape the next decade. It will be an exciting time for (re)insurers, especially those incumbents that can accelerate the pace of innovation and expand the scope of change. Firms that take bold action to meet changing customer needs and expectations can generate significant new business growth and improve underwriting returns.

For years, commercial insurers and reinsurers have been contending with the powerful forces that will reshape the industry during the decade ahead – including changing customer expectations, ongoing tech-driven disruption and competition from new and non-traditional players.

The innovation and growth opportunities are fueled by the pronounced shift from the industry’s traditional linear value chain to a dynamic value exchange. The inefficient processes and misaligned incentives of the past are gradually giving way to direct connections, real-time data feeds and new services (e.g., risk prevention).

In the immediate aftermath of the pandemic, many insurers moved boldly and quickly to automate core operations. Now insurers can build…