Top 10 Trends in Property & Casualty Insurance 2018
Article Synopsis :
This report from Capgemini identifies the top 10 trends in Property & Casualty (Nonlife) insurance in 2018, exploring their impact on a variety of business goals, including:
- Revenue growth
- Cost optimization
- Customer engagement
- Risk reduction
- Pricing accuracy
- Claims leakage
Trend 1: Connected devices help insurers proactively mitigate risk and provide value-added services.
Key Implications: Competitive differentiation, increased customer retention, additional revenue streams, lower claims costs.
Trend 2: New business models are explored.
Key Implications: New business models generate new revenue streams with cost implications possibly mitigated by emerging technologies such as blockchain.
Trend 3: Increase in automation of processes, leveraging RPA and AI.
Key Implications: Personalized underwriting (including on-demand insurance) and instant-claims processing enhance customer experience. New levels of cost reduction and operational efficiencies can be achieved, with outsourced activities possibly returned in-house.
Trend 4: Drones take on an important role for insurance firms.
Key Implications: Regulatory constraints notwithstanding, drones positively impact information gathering for underwriting, pricing, auditing, and claims.
Trend 5: Autonomous vehicles are poised to disrupt the auto insurance business model.
Key Implication: Insurers need comprehensive strategies to prepare for the coming major disruption caused by autonomous vehicles.
Trend 6: Blockchain has the potential to be a game changer.
Key Implications: Know Your Customer (KYC), customer onboarding, policy issuance, and claims are potential use-case areas for blockchain and distributed ledge technologies. The impact could go beyond disruptive to transformational as blockchain is a foundational technology.
Trend 7: Traditional P&C insurers realize the importance of APIs.
Key Implications: APIs enable traditional insurers to develop new applications at a faster pace and facilitate seamless integration with other stakeholders in platform environments.
Trend 8: More P&C insurers embrace advanced analytics.
Key Implications: Analytics deliver more accurate pricing and risk classification, plus personalization and enhanced customer experience.
Trend 9: Collaboration with InsurTech firms heats up.
Key Implications: InsurTech partnerships stimulate the development of new products and services, new revenue streams, reduced operating costs, and a boost to in-house innovation capabilities.
Trend 10: P&C Insurers adopt a cloud-native approach.
Key Implications: Beyond cost reduction, cloud options bring speed and agility compared with traditional on-prem datacenter arrangements.
Link to Full Article:: click here
Digital Insurer's CommentsIt’s hard to argue with any of the ten trends put forth in this report, or Capgemini’s thorough treatment of them. A trend identified, and qualified as strategic, that, in our view, doesn’t get enough press is Trend 10 – insurers moving to a cloud native approach.
With respect to the cloud, cost reduction is always the conversation starter, with 30% savings over on-prem as given. But with cloud providers spinning up new voice recognition, machine learning, and image transcoding services, the cloud value proposition goes way beyond cost. Cloud providers are innovating reasons to say yes faster than CIOs can generate reasons to say no.
Link to Source:: click here