Two insurers with a digital agenda, Allianz & L&G combined with Allianz taking full control of LV= this years adds up to fierce competition for other UK insurers.

Allianz implemented a strategy of harvesting the digital dividend announcing a global Technology Partnership with 360Globalnet in 2017 to implement and deploy digital claims.

L&G's digital transformation strategy was signalled by the appointment of Maarten Ectors as Chief Digital Officer. An insurance outsider shaking up the business becoming Chief Innovation Officer in 2018. Smart Quote, Smart Claims and a JV with Slice signalled the wave of innovation.

This will certainly challenge UK insurers says UBS analyst Jonny Irwin in today's Financial Times- 

"Allianz’s increased presence in the UK was “bad news” for the country’s other non-life insurers. “We believe this is the last thing UK insurers needed, in a fiercely competitive market, with particular pressure on UK motor insurance margins,” he said. 

Adding the successful deployment of Digital Claims Platforms to becoming #2 in the market puts pressure on other UK insurers to catch-up in the transformation stakes.

McKinsey shows in "Time for insurance companies to face digital reality" that just 4/5 insurers in each sector will win most of the premiums and profits. (See Exhibit IV in linked paper). 

It justs adds to the strategic imperative to choose the right technology partners and technologies to achieve the digital transformation goals vital to stay at the top. 

I wonder which other four UK insurers will join the Allianz/LV=/L&G entity as profitable first movers?