The digital first business models have penetrated deep into the global insurance sector and it has caused a disruption for the better. Actually, the development was on expected lines and primarily due to changing customer needs, automation and artificial intelligence. As someone closely associated with the insurance industry it is important that you take a look at the top 5 trends shaping up the industry this year.
The growing popularity of parametric insurance
If you check out on , one will surely have heard of parametric insurance. It is a form of insurance, which does not indemnify the total loss, but the insurance company agrees to make a payout on the occurrence of a triggering event. The event could be catastrophic in nature and in fact this form of insurance protects cities, airports from terrorism acts. The benefit for this type of insurance is efficient delivery and lack of lengthy investigation procedures.
The risk management has turned a lot more innovative:
The insurance news these days is about adding innovation to the risk management techniques. This is an era about automated decision systems, which will reduce the friction in pricing. There has been inclusion of deep learning led underwriting systems and surely a quickening of the underwriting process is on the cards.
There are plenty of personalized products introduced:
The insurance news worldwide today is also about shifting customer preferences towards seeking insurance cover for lifestyle products. There is also preference for personalized insurance cover over the traditional option. As an insurance service provider you will need to understand customer behavior and have an idea of accurate risk assessments. This will play a positive impact in enhancing customer experience and in the process reduce false claims. There are also peer to peer insurance and micro insurance packages on offer and they give a lot more flexible coverage options.
The introduction of blockchain mainstreaming:
The trend these days in the insurance sector is to mainstream blockchains and this has till date been proven effective. It allows significant large volumes of customer data to be processed in real quick time. It also helps to securely transfer data amongst the stakeholders in an efficient manner. An insurance company can look to share the data with banks and distributors with the help of this technology. In fact if you keep track of general insurance news today, one will get an indication that blockchains will have a more significant role in the future. The blockchains initiatives will have a significant role in future core insurance operations.
The important role played by insurance ecosystems:
The experts point out that by the year 2025 the ecosystems will account for 30% global insurance company revenues. There is sure to be more intense adaptation of data driven culture and insurers will be in a position to plug and leverage data from various organizations with the assistance of complementary strategies. There is surely space for ecosystems to create an impact here.
These are the top five trends, which dominate the insurance sector globally today and as someone closely associated with the industry it is important that you are updated in this regard.