The four trends that define insurance in 2020
Article Synopsis :
A new report from Deloitte has identified four fronts that insurers must campaign if they are not to be left behind by the digital blitzkrieg.
New world, new customers, new solutions
Customers’ needs, knowledge and expectations have expanded exponentially in the past decade.
Insurers believe that 62% of consumers regard the non-insurance products the most important factor when choosing an insurer.
More than half (57%) believe the most effective method of maintaining customer loyalty is through providing access to friendly and knowledgeable staff.
Regulatory obstacles have been the greatest obstacle to growth, say the insurers, but almost half (45%) believe the next major challenge is satisfying customer needs and expectations.
A different roadmap for growth
Growth is expected to come from preventative as well protective approaches, with a range of new services and products.
Currently, a little over a third (35%) generate 30% or more of their business from service based offerings rather than product based. Over the next three years, this will increase to 61%.
Almost two thirds (61%) believe China will see the fastest growth over the next three years. And by 2024, one third (33%) of premium volume will come from brand new propositions.
The negotiating table beckons
In a highly competitive environment, executives acknowledge that organic growth will not be enough.
Three quarters (72%) of the those surveyed believe M&A will drive at least half of the industry’s growth in the next five years.
Almost half (49%) believe the need to expand products and services is the key driver for M&A activity.
And 52% expect to be completing two or more M&A deals in the next three years.
Digital disruption – practical not theoretical
Technological change is a given. But knowing about it and acting on it are very different propositions.
Four out of five believe the industry is keeping up with the pace of technological advancement.
Almost all (95%) expect advanced analytics to have increased in the next three years.
More than half (51%) feel that cyber and data regulation is the biggest challenge for those trying to adjust to an environment of digital disruption.
Deloitte surveyed of 200 CEOs, CFOs, CRO and CTOs in the EMEA region. Of these, 75 represented property and casualty (P&C) insurers, 75 represented life insurance and annuity (L&A) and 50 represented reinsurance/global speciality.
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Digital Insurer's CommentsSome interesting data in this Deloitte report, but also some clear signs that many in EMEA are still playing catch-up with the potential dangers of digital disruption.
80% believe the industry is keeping pace with the speed of technological advancement. That is a lot of confidence to be founded on absolutely nothing but sentiment.
If that’s how people are planning their business strategies, it may be sooner rather than later we see casualties.
Particularly if 2020 become a year for the tech big boys to weigh into the insurance market.
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