Communication isn’t the insurance industry’s strong suit.

In fact, we’ve written a few articles on how the industry could greatly benefit by simply improving this very important third aspect of innovation. (It may come as a surprise, but the insurance industry has been quite adept at identifying the unmet consumer need in the market, and fulfilling it with a product.) But the problem with that two-facet innovation approach is too few people are even aware of these industry-created solutions and therefore the products can’t and don’t reach their potential.

Issues in the insurance industry don’t just stem from communication, or the lack thereof, though. There’s an entire conceptual flaw in the insurance industry — and it comes down to this:

Insurance needs to move from being sold to being bought.

The current state of the insurance industry is rooted in the past — namely in empowering agents to sell the product to the consumer. And in an evolving consumer driven market, people don’t just want to be empowered, they demand to be. As disintermediation becomes a bigger player in the success and evolution of several industries, consumers are becoming more aware of the responsibility of shopping smart. In other words, to get the most out of their dollar, consumers want control over most minor purchases and all of the major ones.

And insurance? Well, we don’t have to tell you it’s a choice that hinges on ensuring the security of those we care about most.

But how does the insurance industry keep up with the modern world and begin to fulfill the consumer’s unmet need for control?

On way is by enabling the consumer through clear communication — moving insurance from being sold to being bought. People want to easily know what is and is not covered. The tools, services and business models that make it easier for the consumer to make the right choice for their individual lifestyles will ultimately gain market share and possibly the trust of the consumer.

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Read More In: Innovation Discussion Financial Services Healthcare New Products, Services, and Business Models Disintermediation