Insurance companies are being urged to form relationships with telco, tech and Internet-Of-Things companies to ensure their survival in the next decade.

PwC’s Future of General Insurance report warns “today’s general insurers will be unrecognisable in less than a decade” if they aren’t able to integrate their offerings into a consumer’s ecosystem.

New revenue can be driven from needs adjacent to insurance, such as home safety solutions, the report says, and it is recommended that ensurers view products as part of an ecosystem — for example, insuring a connected home by partnering with telcos and Internet-of-Things, smart home and technology companies.

It is also argues existing insurance businesses should optimise age-old insurance basics.

“Optimising profitability of core business revenue streams through data-led and digitally-streamlined operating models, informed by efficient and effective customer segmentation,” the authors say.

PwC’s findings are similar to a recent report from McKinsey, which urged insurance companies to shift away from a ‘detect and repair’ style towards a ‘predict and prevent’ methodology.

“We believe that general insurance in Australia by 2030 will be characterised by end-to-end personalised and dynamically priced customer experiences,” PwC states.

“The winners of the future will be those who can fundamentally shift their thinking, understand trade-offs and be bold enough to make tough strategic choices.”

This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.