The hidden benefits of value-added services in commercial lines insurance

Value-added services can help insurers improve profitability, own the customer interface, and reinvent their product offerings. To capture these benefits, companies must understand the changing needs of customers and brokers and expand new services beyond a core offering.

The global commercial lines insurance market is under pressure: in recent years, it has suffered from declining profitability and cyclical growth. Brokers are increasingly owning the customer interface and excess capital is diminishing margins.

In this market, insurers must reinvent their products and services offerings to remain competitive. Value-added services hold enormous potential to react to changing customer and broker needs, but insurers will need to define offerings that go beyond the current core to truly monetize.

The hidden benefits of value-added services (VAS) in commercial lines insurance
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About the author(s)

Ari Chester is a partner in McKinsey’s Pittsburgh office, Johannes-Tobias Lorenz is a senior partner in the Düsseldorf office, Maximilian Straub is an associate partner in the Zurich office, and Christian Stüer is a partner in the Cologne office.

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