If the insurance industry exists to manage future uncertainty,why are today's dominant carriers sweating their own uncertainfuture?

One big reason is the pace of change that is centered on twomajor trends:

1. New technology is opening the doorto new players and new models, forcing established companies torethink their offerings.

2. Digitally empowered and connected consumers demandpersonalized experiences, which impacts how they buyinsurance products and interact with carriers.

Will these trends end the era of the traditional insurancecarrier? It isn't likely, but existing players must evolve or theywill lose significant market share. So let's take a look at a fewof the strategies available for organizations that are ready totake action:

1. Mobile interactions.

Consumer mobility may no longer seem like news, but continued innovation in mobile technology ishard to ignore. Policyholder expectations for a mobile experiencehave been raised by their interactions with other industries fromentertainment to retail.

While many insurance companies have begun to offer basic mobileservice, like real-time payment or claims transactions usingsmartphones or tablets, not many have been truly creative. Someorganizations have experimented with tips, news, communities anddriver analysis, but few apps go beyond gimmick to creating realincremental value. This isn't surprising given the industry'sbarriers and its traditional conservatism, but neither shouldfundamentally block innovation.

How to adapt: At a minimum, carriers must takea fast follower approach by closely watching other industries likefinancial services, as opposed to only companies like Amazon andApple that everyone claims to be following. To get ahead, theinsurance industry will need to make room for what might lookunconventional today. Tactics like crowdsourcing (to name just one)are untapped in our industry and have the power to unlock newinsight, especially with advances in the ability to deploy thetrove of data that insurers already own.

2. Internet of Things (IoT) influencedservices.

A related trend to mobile customers is the rapidly expanding Internet of Things. There aremany examples of this trend today including:

• Internet-connected biometrics and wearable technology thatmonitors lifestyle and personal health.

• Geospatial applications and telematics for vehicles.

• Environmental sensors for property.

• Diagnostic sensors for products to detect issues and determinewhether an extended warranty or preventative services should beoffered.

These innovations not only allow insurers to better assess riskand offer willing consumers the opportunity for discounts, but alsocreate space for differentiation. The differentiation allowsmarketers to create messaging that addresses particular needs andappeals to specific customer segments.

How to adapt: Addressable marketing platformsare making it cost-effective to target smaller audiences. Theability to stake out and cultivate customers in this way providesboth the ability to gain an edge in acquisition and to monetizeinnovations for consumers who best fit the buyer profile.

Related: Millennial consumers, mobile use andinsurance sales

Insurance companies have an opportunity to educate theirpolicyholders on what they have to offer — somethingcomparison tools cannot do. (Photo: Shutterstock)

3. Price and value comparison.

Time and again, consumers express demand for these services.However, over the years these services have failed to reach theirfull potential. Google Compare is just one of a few recentexamples. Despite setbacks, it's more than likely that consumershopping will become more sophisticated and compared new businesswill continue to increase in market share.

How to adapt: Because of their focus onspecific segments, insurance marketers have the opportunity to tella story over time that comparison tools cannot replicate. Insurerscan do this with addressable experiences; offering a cohesive andvalue-added journey for their particular target market. Secondly,insurers should develop unique elements of their value propositionthat defy the forced categorization that is a necessity forcomparison tools. In short, insurers must stand out in themarketplace and communicate in a manner befitting a consideredpurchase.

4. Emerging insurance models.

Financial technology companies have entered the lending andinvestment space. Just one example is how they are connectingpeople in need of financial support directly with investors.Several U.S.-based insurance technology companies (Lemonade, Trove,Sure) are expected to release similar, peer-to-peer (P2P) insuranceproducts later this year. These products collect premiums fromgroups of friends, family, or other affiliated/interest groupmembers. In short, these are self-organizing segments.

How to adapt: Whether the change is in P2P orself-driving cars and "intelligent property," there are existingcore strategies that can manage transformative change. Changemanagement in other industries may also provide a guide.

For example, over the last two years the investment industry hasbeen wrestling with the adoption of roboadvisor businessmodels. These firms have adapted their core competitiveadvantage with build and partner models to evolve their offerings.Through this process they have further refined the market nichesthey serve.

Carriers should focus on understanding the long-term valueof individual consumers and segments based on their own proprietarydata. (Photo: iStock)

Target individuals across multiple channels

In the age of connected customers and addressable marketing,carriers that want to be originators and not just underwriters needto focus on marketing and communication platforms. Today'sincumbents still have the opportunity to lead by owning thetechnology and execution know-how needed to enable segment-drivenmarketing and experiences. With this base, they will be in aposition to adapt their offerings to target smaller and smallersegments, potentially grabbing the scaled opportunity from P2P orwhatever other models emerge.

Related: Insurers face several challenges when it comes toinnovation

In this space, carriers should focus intensely on understandingthe long-term value of individual consumers and segments based ontheir own proprietary data. They can then target these individualsacross multiple channels in ways that will be hard to replicateusing other data sources.

Pace of change is clearly increasing

While there is plenty of debate about which insurance markettrends will dominate and which strategies will ultimately win,there is really no debate that the pace of change is increasing.The key for insurers, then, is to just get going. Early movers willneed real-time market intelligence and execution capabilities.

Fast followers that are benefitting from innovators' weaknesseswill need robust sales and marketing capabilities that allow themto enter the market at scale, "owning" their target market. Eitherway, the key is to be purposeful. As insurers know well, thrivingin an uncertain future is not about avoiding risk, but aboutadapting to change from a solid foundation.

Related: Timing is everything: 8 tips for improving customercommunications

Aaron Tellier is the general manager of insurance and wealthmanagement for Columbia, South Carolina-based Merkle.