Top 5 Trends in The Insurance Industry?
1. Personalised Insurance
Personalisation is a trend set to stay. Customers want to been seen as individuals and expect to be treated as such. This is where all-in-one insurance products are now starting to come into their own. Customers are starting to look for that personalised insurance cover, rather than the one-size-fits-all policy.
To be able to supply customers with the personalisation they want, insurers need to gain a solid foundation of customer data insights. In addition to this data, they would also need behavioural insight to develop a deeper view of their customers.
Technology is drastically increasing the leverageable data available to the insurers. Development will improve product offering, drive revenues and profitability across the value chain.
2. AI and Automation
AI and Automation is not a new concept in the insurance industry however they have always been used for simple processes that require low decision-making skills such as data entry, compliance checks, standard customer communications, and managing rule-based decisions.
What is new is the increasing capabilities of intelligent systems. Automation can now perform much more complex processes usually reserved for a human workforce making Ai a much more viable solution for the insurance industry to explore.
Insurers investing and embracing in machine learning and automation during the whole product lifecycle will profoundly impact and improve business outcomes in the insurance sector. Customer experience, cost optimization, operational efficiencies and market competitiveness could all improve as automation would enable more accurately demined risk which would lead to higher profitability and start to reduce processing costs.
3. Cyber Security
Risk Management is something insurers deal with daily, cyber precautions should be one of those managed risks but is often left behind.
Although not an area as frequently targeted in comparison to other financial sectors it has the potential to increase. As other sectors tighten up their cybersecurity the natural progression of the attacker is to look for a weaker link. If unprepared insurance companies could see themselves being the main target. If insurers create stronger protection for key data, the customer will maintain peace of mind that their data is safe, reducing brand and reputational risk, and achieving more efficient regulatory compliance.
Cybersecurity is not only a risk but also presents an opportunity, we are living in an age where almost everything is managed digitally meaning many businesses and individuals alike are at risk of their virtual information being breached. This is where customer expectation for coverage of this risk arises. Insurers need to expect that their customers will expect coverage which protects their virtual information from being breached.
4. InsurTech and Mainstream Collaborations
InsurTechs are taking advantage of new technologies to provide coverage for the more digitally savvy customer. They are a fast-growing force in the industry which should not be ignored.
With fast-growing demand from customers for innovative products and services that deliver in a fraction of the time, collaboration with the mainstream insurer is an imperative step which needs to be considered.
InsurTech companies can design powerful, focused applications that solve specific problems whilst delivering high-quality and intuitive digital experiences. Collaboration will give rise to newer models and revenue streams for higher profitability and reduced operational costs. Customer experiences will be enhanced with value-added offerings.
5. Mainstreaming Blockchain
Using blockchain enables insurers to seamlessly process large volumes of customer data in real-time, securely and easily. The technology offers reduced operational costs, improvements in transparency, streamlined processing and improved automation of processes.
Impactful blockchain initiatives are likely to change the shape of insurance operations in years to come. Ramifications will not be immediate, however primary initiatives are likely to lead to wider adoption and implementation of blockchain in the insurance industry.