Key Industry trends impacting Insurance Industry

Environmental

• With severe weather increased volatility is predicted, large and sudden surges in claims volume is expected

Regulation

• Lower risk due to govt. regulations

• Decreased claim volumes

Changes in customer preferences

• Sharing economy resulting in on-demand, micro-duration usage based insurance coverage

• Peer to Peer insurance

Social Media & Collaboration

• Social media will provide complementary real-time information about claims severity and localization and help prevent fraud

• Will provide insights into customer risk profiles and relationships

• Will improve collaboration and improve decisions and processes both internally with carriers and externally with the distribution channel.

• Knowledge sharing among agents, adjusters

Digital

• Will improve the customer experience through omni-channel capabilities

• Automation results in increase in self directed service

• All in one policy insurance opportunities for cross-selling products & services

• All in one place insurance with robo-advice on gaps and duplication in cover.

• Proactive accurate and transparent information about claims status

Mobility

• Geolocation, portability and photo, video capability

• Customer can access policy/claims information on demand

• Customer provides photos or videos for faster claims processing

Omni Bots/ Assistants

• Automation digital agent - offer personalized insurance products in real-time

• Claims process automation

Cloud

• Insurance companies move from legacy systems to cloud based systems

• Open source make it easy for new entrants to enter the market

API Capabilities

• Integrate to customers and partners solutions

• Integrating data, processes, and business functionality from legacy systems of record to newer systems of engagement like web, mobile and cloud.

Security

• Cybersecurity products that prevent and protect against the breach or loss of data, and damage that might ensue.

Big data

Predictive Analytics

• From reactive to a preventative business model

• Better data on claims incidents and clearer insight into the cost of risks are likely to decrease overall claims volumes from large commercial policyholders.

• Advanced image analytics - Eliminating the need for in-person property or vehicle damage inspections using photos and videos to estimate claims

• Fraud prediction - better at detecting, investigating and controlling fraud

• Access to quality, comprehensive data that can improve underwriting outcomes and create efficiencies for the consumer, agent and insurer

AI/NLP

• Simple claims may be more often settled automatically

• Robotic process automation reduce the need for more human interaction

• Early detection of fraud, automate the quality audit

• Reduce documentation time, automate estimation process

• Shift from probabilistic to deterministic models

• Changes in the industry workforce - fewer lower-skilled claims handlers

Sensors/IOT

• Risk prevention - increasing penetration of connected sensors and devices in homes, cars, and businesses will reduce claims frequency and severity.

• Data from factory and home sensors and telematics data from cars and trucks changes the game for proactive loss prevention.

Block chain/DLT

• Claims processing via smart contracts, identity verification

• Simplify settlement, recovery and subrogation processes

Satellites/Mini Satellites

• Provide data such as flooding data, real time weather data, GPS data to reduce risk

• Assess post event losses

• Incorporate data such as weather prediction for risk assessment

Drones

• Faster claims verification - eliminating the need for in-person property or vehicle damage inspections

• Underwriting - video inspection

Connected Cars

• UBI / PAYG / MHYD insurance models

• New Auto ownership business model - single price for the car, maintenance, and insurance.

Connected Health/Medical advances

• Tele health

• Prevent injuries

• Diagnose injuries faster

Wearables

• Monitor health

• Wellness support

• Better and more frequent customer interaction

AR/VR/MR

• Virtual driving tests

• Agent training

• Damage detection and assessment

• Sales and marketing tool