What makes an insurance company innovative?

The US insurance industry has seen a wave of innovation efforts from long-time players and newcomers alike in recent years. Whether it's a full-scale makeover or a subtle shift in logos and slogans, these changes aren't just about aesthetics—they're a strategy to address the broader challenges and opportunities of an evolving market.

One Insurance Business expert he spoke to noted that the rapid pace of mergers and acquisitions (M&A) has increased the need to combine products, especially in large organizations.

“There's a lot of M&A activity where corporate carriers acquire different business units,” said Peter McMurtrie (pictured above, left), a partner in the West Monroe insurance practice.

“As they do so, they inherit existing brands, often carrying significant brand equity. However, managing a large portfolio of products can be inefficient and can obscure the full scale of the organization.”

IM&A, market expansion, strategic pivots – factors driving insurance resale

McMurtrie, who has more than 30 years of insurance experience, joins West Monroe from Nationwide, where he previously served as president of property and casualty insurance and saw the company reinvent itself in 2015.

“They merged the companies under the name Nationwide. This not only reduced marketing costs but also increased their presence in the market,” said McMurtrie. “Consolidating multiple brands into a single, unified brand can be efficient and cost-effective, and helps the company to be seen on a larger scale in the marketplace, rather than as a collection of smaller companies.”

Rebranding is often a way for insurance companies to demonstrate that they understand and are in tune with these evolving customer preferences. Brands are increasingly emphasizing customer-centric values, such as ease of access, transparency, and support for digital engagement.

“We've been around for almost 200 years, and about 25 years ago, our remaining affiliates came together to form FM Global. Since then, we've grown tremendously,” said Johnell Holly (pictured above, right), SVP, global customer services, sales and marketing at FM.

“While our core values ​​and what we deliver to our customers remain the same, we are now a much larger, globally integrated company. It was the right time to refresh the brand and present ourselves accordingly.”

Staying relevant amid technological disruption is another motivation for insurance companies. Companies like Allstate and State Farm have integrated technology and user-friendly digital services into their offerings, often accompanied by product updates that highlight this innovation.

Rebranding as reputation management?

If a company is facing a major reputational challenge, such as a scandal, legal issues, or public relations issues, rebranding can serve to rebuild consumer trust and restore their reputation. Earlier this month, Chicago-based insurance broker Guaranteed Rate Insurance rebranded to Rate Insurance following reports of a toxic culture within the organization as it grew rapidly.

McMurtrie pointed out that these measures are not unique to the insurance industry. “Brands often support reputation management, by creating a new brand or refreshing an existing one to reshape public perception,” he said.

“There is a historic story of British Petroleum adopting a green logo to show environmental responsibility after a major tank leak. While redoing the image change name is rare [in insurance]it happens.”

Whatever a company's reasons for introducing a new image, the success of a rebrand often comes down to targeting.

“The bottom line is that rebranding must be meaningful, especially if carriers are very sensitive to their costs and losses,” said McMurtrie.

“There must be a clear product structure and vision of purpose, the purpose of the organization, and the ability to create that connection. If you're transitioning from a legacy product, you have to be able to deliver that story.”

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