Key lessons in building successful partnerships
What should insurers keep top of mind when entering a new line of business? Two key lessons emerge from RGA's case study.
Strengthen your structure
Effective bridge-building in the insurance industry means leveraging existing expertise rather than starting at page one. Providers across the value chain can bring best-in-class expertise, experience, and resources to the project.
Insurers don't need to construct every element of their partner ecosystem. RGA, for example, brings clients a diverse network of third-party relationships – proven, vetted collaborators and their associated resources. The result is a team of experts from a wide range of areas working toward a common goal.
Key benefits for insurers from a strategic partnership with a reinsurer can include:
- Operational support in everything from sales and service to marketing and technology
- Access to an established client base in new markets
- Economies of scale that lower costs and increase profitability through shared resources
Reinsurers such as RGA heavily invest in research, actuarial modeling, and market intelligence, giving their insurer partners deeper, wider expertise. They also help their partners to confidently drive innovation by sharing in the risk, allowing insurers to more safely experiment with novel product features.
Eliminate the noise
In theory, good communication is simple. It involves just three elements: a sender, a message, and a listener. The problem is noise – anything that interferes with the message as it travels from sender to listener.
Noise is an all-too-common occurrence in new reinsurance partnerships.
On the insurer's side, it is vital to understand and respect your reinsurer's areas of expertise. By remaining open to suggestions, even if they go against "the way things have always been done," insurers are maximizing the benefits of the partnership.
On the reinsurer's side, the key is to honor their client's culture and experience. No two insurers are the same, and trying to apply cookie-cutter solutions to every partnership is destined to fail. Before entering a partnership, insurers should ask for examples of a reinsurer's bespoke solutions for a variety of clients.
Once an agreement is reached, the reinsurer needs to keep the client – and the client's customers – at the center of the relationship. The win-win occurs when the two come together around common goals and eliminate the noise.
Conclusion: Build effective bridges
In today's complex insurance landscape, the path to growth and innovation often lies in strategic partnerships. By building bridges between complementary strengths and expertise, insurers can expand their capabilities, enter new markets, and better serve their customers.
The question is not whether to go it alone or seek partnerships. Rather, it is how to build the most effective bridges for your business.
Contact us today to start building your strategic bridge with RGA.