A life insurance company with a market leading position but historical business model and arcane architecture, engaged a TACTech partner to disrupt itself and accelerate transformation to a digital platform with a future proof business model.
The firm had an existing profitable business but recognised that without adopting a new approach they would be overtaken by newer platform based businesses eroding their market dominance and leaving them dependent on a dated business model. The new business model would require not only a complete ground up build of a B2B, open architecture platform but also the adoption of new forms of product distribution and partners and a redesign of their product suite. All of this needed to be balanced with the retention of existing distribution channels and products as well as a management team not fully onboard to such a critical pivot away from a steady income stream.
How TACTech partners helped
Following board approval of the project our partner conducted a strategic planning exercise which recommended that: i) the new platform and approach be spun up in a Newco, separate from the existing Lifeco, to ensure autonomy, ring fenced funding and adoption of agile technology processes away from the firm’s own technology departments ii) a clear transition plan to amalgamate legacy and new businesses back together was articulated to ensure buy-in from waivering rear guard management iii) an entirely new approach to product design, marketing and incentives be implemented.
Once agreed and funded the TACTech partner established the Newco and populated it with new and interim staff to build a B2B technology platform employing agile processes. Rather than a pure technology play, the TACtech partner preferred to engage with the existing advisor community to ensure buy-in and relevance which secured traction upon launch and in turn vested their advisor network in the success of the platform.
With external support captured, the platform was adopted internally and an entirely new go to market approach was developed using channel partners for the products. A necessary overhaul was undertaken of the products, marketing practices, incentives, and where required, people.
Results, Return on Investment and Future Plans
The platform launched within 18 months and quickly gathered momentum with distribution firms and advisors. The advisors, traditionally transactional, adjusted their own business models to utilise the platform ensuring a far superior stickiness and in some cases market-share of 10-20% rising to 100%. The platform has grown to > £60bn under administration, much of which has channelled into in-house investment solutions and 5000 user-firms. The combined value of both platform and subsequent fund management returns vastly outweigh the scale and quality of the historic business model.
About TACTech interim CEO and technology transformation services.
TACTech’s broad and deep bench of C-Suite Executives creates a unique proposition for firms aspiring to transform, digitalise and disrupt their own businesses to sustain and grow market position, income and quality of earnings.