# Domestic insurer turning into international super hero? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-10-14 Category: INSURANCE Category URL: https://financedigest.com/category/insurance Meta Title: How embracing new markets can give insurers superpowers Meta Description: Discover why European insurers should consider expanding into less competitive markets using insights from Niels Zijderveld, regional sales director at URL: https://financedigest.com/domestic-insurer-turning-into-international-super-herohtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd141017-3-1736843372936-compressed.jpg) _By_ **_Niels Zijderveld,_** _regional sales director, Europe at Guidewire_ ![Niels Zijderveld](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd141017-6-300x200-1736843372804-compressed.jpg) Niels Zijderveld Understanding why Superman can fly and run faster than a speeding locomotive is something many European insurers might want to consider. As every comic hero fan knows, Superman had superpowers on Earth because his physique was optimized for living on Krypton, a world of much more [extreme environmental conditions](https://www.financedigest.com/tips-for-preparing-your-car-and-home-for-extreme-weather-conditions.html "Tips for Preparing Your Car and Home for Extreme Weather Conditions"). Now, I am not suggesting [insurers](https://www.financedigest.com/different-countries-different-insurance-cultures-how-insurers-can-adapt-their-products.html "insurers") don tights and a cape. The lesson, rather, is how insurance companies, that have become so super-conditioned to survive and thrive in the especially aggressive market conditions of one national market, could leap into another less [competitive national market](https://www.financedigest.com/industrial-magnetrons-market-competitive-growth-strategies-based-on-type-applications-end-user-and-region.html "Industrial Magnetrons Market Competitive Growth Strategies Based on Type, Applications, End User and Region") and seize business there extremely fast and successfully. In effect, what is a routine requirement of operating in one market, when transferred to another, appears to provide superpower [advantage](https://www.financedigest.com/turning-the-burden-of-compliance-into-competitive-advantage.html "Turning the burden of compliance into competitive advantage") that knocks out the competition who may not be as competitively super-fit. This is a factor of how insurance continues to be very parochial in many markets [across Europe](https://www.financedigest.com/white-bullets-piracy-demonetising-programmes-drastically-reduce-ad-revenues-to-piracy-websites-across-europe-analysis-finds.html "White Bullet’s piracy demonetising programmes drastically reduce ad revenues to piracy websites across Europe, analysis finds"). Tradition and stability are historic strengths, but [insurers can become very insular in some markets](https://www.financedigest.com/digital-marketing-for-finance-and-insurance-firms-is-changing-are-you-ready.html "Digital marketing for finance and insurance firms is changing — Are you ready?"). This can even be the case amongst larger, multinational [insurance brands](https://www.financedigest.com/why-insurers-have-started-listening-to-what-sonic-branding-has-to-offer.html "Why insurers have started listening to what sonic branding has to offer"). While these are huge businesses, they have tended to grow by acquiring local independent firms. Although part of an international brand, these local [operations tend to retain an insular viewpoint on what they regard](https://www.financedigest.com/holcim-supports-resolution-with-u-s-regarding-legacy-operations-in-syria.html "Holcim supports resolution with U.S. regarding legacy operations in Syria") as best practice. So, whether to a large or small degree, a parochial mindset affects how readily an insurer sees the [opportunities or threats](https://www.financedigest.com/new-kids-on-the-block-what-threats-will-neobanks-face-in-2022-and-where-will-the-opportunities-lie.html "New kids on the block: What threats will neobanks face in 2022, and where will the opportunities lie?") that loom. ![logo](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd141017-2-300x48-1736843372848-compressed.png) At the root of this is a commendable belief held by many [insurers that their business](https://www.financedigest.com/business-insurance-what-does-it-cover.html "Business Insurance: What does it cover?") is special and unique. There is a great deal that can differentiate any insurer but, in our experience, this does not extend to the [fundamental processes of the business](https://www.financedigest.com/world-bank-scrapping-ease-of-doing-business-index-is-a-reminder-to-focus-on-fundamentals.html "World Bank scrapping Ease of Doing Business Index is a reminder to focus on fundamentals"), which are deeply uniform whether the insurer is in Austria, Britain, France or Greece. Of course, local rules and [regulations can create](https://www.financedigest.com/strict-regulations-regarding-hygiene-at-industrial-workplaces-to-create-high-demand-for-industrial-dispensers-persistence-market-research.html "Strict Regulations Regarding Hygiene at Industrial Workplaces to Create High Demand for Industrial Dispensers: Persistence Market Research") variations and complications, but the majority – 80-90% – of the policy and claims core system functionality needed is the same, regardless of who or where the insurer is located. The competitive differences lie in how streamlined given processes are, and how efficiently they  work and achieve superior combined operating ratios (CORs).The prime driver to achieve this is through straight through processing, whether it is binding and issuing a policy or [settling a claim](https://www.financedigest.com/cvs-walmart-walgreens-agree-to-pay-13-8-billion-to-settle-u-s-opioid-claims-sources.html "CVS, Walmart, Walgreens agree to pay .8 billion to settle U.S. opioid claims – sources"). The challenge is in fine-tuning this process, so as to avoid adverse risk selection and to identify those cases where manual intervention is required. This is where local knowledge and AI techniques can help make the difference. Such regional differences, could be the basis for some insurers to make bold [moves into new markets](https://www.financedigest.com/the-next-upcoming-years-to-see-the-dental-biomaterial-market-move-exponentially-upwards.html "The Next Upcoming Years To See The Dental Biomaterial Market Move Exponentially Upwards"). In the past, the [cost of distribution has prevented](https://www.financedigest.com/preventing-poor-esg-practices-from-costing-you-investors.html "Preventing poor ESG practices from costing you investors") this scenario taking place. However, this and other [barriers for an outsider to break into a new market](https://www.financedigest.com/the-adhesion-barriers-market-to-witness-innovation-oriented-sustenance.html "The Adhesion Barriers Market to witness innovation-oriented sustenance") appear to be tumbling. Technology drops the cost and streamlines how [products are brought to market](https://www.financedigest.com/organic-soy-products-market-outlook-current-and-future-industry-landscape-analysis-2029.html "Organic Soy Products Market Outlook, Current and Future Industry Landscape Analysis 2029"), while regulatory controls are increasingly harmonized between countries. The standardization of [software platforms also makes operating business](https://www.financedigest.com/how-to-choose-the-right-software-architecture-for-your-business.html "How to choose the right software architecture for your business") models more easily transferable. Insurers have become used to being told they must be prepared for the mega, [digital customer service](https://www.financedigest.com/constructive-digitization-to-let-the-remote-patient-monitoring-services-market-come-of-age.html "Constructive digitization to let the Remote Patient Monitoring Services Market come of age") brands like Google, Über and Amazon to disrupt their markets. There is some truth, plus a lot of hyperbole, in this argument. What does seem more likely to be of threat is that smarter [regional players](https://www.financedigest.com/truck-mounted-concrete-mixer-market-size-top-key-players-latest-trends-regional-insights-and-global-industry-dynamics-by-2022.html "Truck Mounted Concrete Mixer Market Size, Top Key Players, Latest Trends, Regional Insights and Global Industry Dynamics By 2022") could be the dreaded agents of change because they may be better conditioned to be agile and lean, and have developed digital platforms that allow them to operate more readily across borders. While it is a cliché to say the [industry is navigating through a period of dramatic change, the importance of being open to new ideas, and adopting an international mindset, will be what helps the industry reach safe and profitable](https://www.financedigest.com/china-july-industrial-profits-down-as-covid-curbs-heatwaves-hit.html "China July industrial profits down as COVID curbs, heatwaves hit") shores. [Insurers will not need a Superman to come](https://www.financedigest.com/are-you-getting-what-you-are-paying-for-when-it-comes-to-cyber-liability-insurance.html "ARE YOU GETTING WHAT YOU ARE PAYING FOR WHEN IT COMES TO CYBER LIABILITY INSURANCE?") and save their day; an open mind and approach will make the challenges from near and far easier to foresee, mitigate, and even repulse. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---