8. The Response of Incumbents

Naylor examines the likely responses of insurer incumbents to the looming waves of disruptive technology and examines successful and unsuccessful responses. Reasons why incumbents tend to be slow to respond to disruptive change are explored, and the conditions which encourage disruptive external entrants are examined. The chapter then explores the stages of disruption and why incumbents often miscalculate their chances of survival. The issues of trying to respond to disruption while minimizing damage to existing markets are explored, as are typical mistakes made by incumbents. The chapter then provides examples of companies who are responding to the looming crisis in successful ways, both incumbents and external entrants. The chapter ends with a vision of the transformation in the insurance market required to enter the new age.