Do you really know what your competitors are doing better digitally? In a market where one in five customers compares online, ignorance is an expensive risk. Data-driven competitive analysis is no longer a luxury but the foundation for sustainable growth and profitability.
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The topic briefly and concisely
The proportion of digital insurance policies rose to 19.1% in 2023, highlighting the need to analyse competitors' online strategies.
AI, cloud services, and digital ecosystems are the defining technology trends of 2024, whose adoption must be monitored by competitors.
One in five customers use comparison portals, making data-driven price and performance analysis essential to remain profitable.
The insurance market is undergoing a fundamental transformation, driven by digitalisation and changing customer expectations. A systematic competitive analysis for insurance is the compass to navigate safely in this new environment. It provides the necessary data to make strategic decisions based on solid facts rather than gut feelings. This article shows you how to uncover concrete potential in product development, pricing, and customer service by analysing your competitors and thereby improve your market position by at least 5%.
Understanding Market Dynamics: More Than Just Market Shares
A comprehensive competitive analysis for insurance goes far beyond simply examining market shares. It uncovers the strategies behind the figures. In 2023, 19.1% of all private insurance contracts were concluded digitally, an increase of almost 2.5 percentage points compared to the previous year. This trend is even more pronounced in the motor vehicle sector, with 24.4% of policies concluded online. These figures show that a digital presence is no longer an optional extra. Analysing your competitors’ digital sales channels is crucial to adjusting your own strategy. A detailed market analysis and trend observation reveals which platforms and processes resonate best with customers. Without this knowledge, insurers are operating blindly and risk losing valuable customer segments to more agile competitors.
Product Development: Drive Innovations Forward Intentionally
Do you know the product roadmap of your three biggest competitors for the next 18 months? A strategic competitive analysis provides exactly these insights and protects against costly missteps. It allows you to identify market gaps before others claim them. The trend is clearly towards modular and personalised products enabled by AI applications. Insurers who do not continuously analyse the offerings of competitors – from telematics car insurance to cyber policies for private customers – risk falling behind. Such an analysis can shorten the development time for new products by up to 30%. These insights feed directly into one's own insurance market strategy. The analysis not only shows what the competition offers but also reveals which customer needs remain unmet.
Pricing strategy: Staying competitive and profitable
The price is an essential factor online, but not the only one. Every fifth insurance customer has taken out policies via comparison portals in the last two years. This intense competitive pressure necessitates dynamic, data-driven pricing. Merely aligning with the cheapest provider leads to a destructive price war, eroding margins by up to 15%. An intelligent competitive analysis for insurance considers the overall price-performance ratio.
This includes the following aspects:
Basic premiums and discount structures
Scope of benefits and exclusions
Deductibles in various tariff options
Additional services and service packages
Costs for optional components
An analysis that considers these factors enables a pricing strategy that is both attractive to the customer and profitable for the company. Identifying the right trends in pricing is a clear advantage in this context. This way, you secure a stable position in the market without jeopardising your own profitability.
Customer Experience: The Digital Interface as a Differentiator
A smooth online completion is now a basic requirement. The real differentiation in the competition takes place in the digital customer experience. A study from 2024 shows that even digital insurers often have weaknesses in the authorisation process, which can lead to a dropout rate of over 40%. Analysing the entire digital customer journey of the competition – from app usability and customer service availability to damage reporting via photo – uncovers crucial weaknesses and best practices. Companies that invest in this area demonstrably increase customer retention by over 25%. An effective risk management also includes minimising customer losses through poor service processes. The analysis of competitors provides a clear blueprint for this.
Technology and Regulation: Acting proactively instead of reactively
The insurance industry in 2024 is shaped by four key technology trends: cloud services, AI and analytics, digital ecosystems, and sustainability. A continuous competitive analysis shows how quickly and thoroughly your competitors are adapting to these technologies. Are SaaS solutions already being used to increase efficiency in administration? Is the competition using AI for automated claims assessment, cutting costs by 20%?
Monitoring also helps to strategically navigate regulatory changes like the EU's retail investor strategy. Your analysis should answer the following questions:
Which cloud providers are competitors using?
In which processes is generative AI already being tested or implemented?
Which partners are involved in the competitors' digital ecosystems?
How are ESG criteria communicated in insurance products and marketing?
The answers to these questions form the basis for not just keeping up, but actively shaping the future trends of the industry. Need a data-driven assessment of your position? An Auctoa evaluation or a conversation with our ImmoGPT chat can provide you with swift and objective clarity.
Conclusion: Analysis as the Foundation for Sustainable Success
The days when insurers could develop their strategy behind closed doors are definitively over. A professional, continuous competitive analysis for insurance is the crucial lever to survive and grow in a dynamic market environment. It provides the necessary transparency regarding the products, prices, processes, and technologies of the competition. Only with this knowledge can you make informed decisions, minimize risks, and fully exploit the opportunities of digitalisation. Do not view competitive analysis as a cost factor, but as one of the most profitable investments in the future of your company.
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Additional useful links
GDV offers comprehensive statistics on the German insurance industry, providing deep insights into market developments and trends.
Handelsblatt Research and BearingPoint present a playbook delivering strategic insights and forecasts for the insurance industry up until 2030.
PwC explains in a publication the methodology and significance of market and competitive analyses for companies.
Bitkom highlights the degree of digitalisation in the German financial and insurance sectors and showcases current developments.
Bain & Company and Google have jointly published a study on the digitalisation of the insurance industry, revealing key trends and challenges.
Statista provides detailed statistics on the insurance penetration of primary insurers in Germany, offering insight into market shares and customer behaviour.
Munich Re presents solutions for data analyses in the life insurance sector, especially with regard to biometric analyses.
ServiceValue publishes a study on customer verdicts regarding the fairness of assistance providers, delivering key insights into customer satisfaction.
Wikipedia offers a general overview and definition of the insurance industry.
Springer provides academic content on insurance economics, including in-depth analyses and research findings.
FAQ
What is the main advantage of a systematic competitive analysis for my insurance?
The main advantage is the ability to make informed strategic decisions. You replace guesses with data, allowing you to develop products that the market truly wants, set competitive prices, and optimize service processes, which directly leads to increased growth and profitability.
How complex is such an analysis?
The effort depends on the depth of the analysis. A basic analysis can be conducted internally with available tools. For a thorough, strategic analysis that also examines technological and procedural aspects, collaboration with external specialists like Auctoa can be more efficient to gain objective and data-driven insights.
Can I focus solely on analysing the largest competitors?
No, that would be a mistake. Don't just analyse the market leaders, but also consider smaller, agile InsurTechs or niche providers. These are often the drivers of innovation and can quickly capture new customer segments. A broad analysis protects you from unpleasant surprises.
Our insurance company doesn't have any real estate in its portfolio. Is an analysis still relevant?
Absolutely. The principles of competitive analysis described here – understanding digital channels, product innovations, pricing strategies, and customer experiences – are universally applicable to all segments of the insurance industry, from life and health to property insurance.
How can Auctoa assist with a competitive analysis?
Auctoa specialises in data-driven analysis and valuations. With our AI tools like ImmoGPT and our expertise in market analysis, we can help you obtain an objective, quick, and precise evaluation of your market position compared to the competition, and derive concrete recommendations for action.
