22. International trips are the biggest opportunity for growth in the travel insurance sector. Power, customer-focused digital solutions will be brought on by strong partnerships between traditional carriers and startups. While most insurers welcome the opportunity to automate time-consuming operations, some are also concerned about job security and the potential impact on the insurer-insured relationship. From messages and pricing to recommendations, most insurance customers are looking for personalized offers to meet their needs. Demanding customers, new competitors and a changing set of challenges … Larger companies with vast resources have already upgraded their entire systems infrastructure to provide a cross-generational appeal. Because, in truth, the insurance industry trends show that the only way we’re going is forward. In the US, there are two main categories of insurance — life/health and property/casualty. When the AI algorithm is merged with automation, we get faster car insurance claims powered by streamlined and automated processes. 5. 52% of these premiums came from life and health insurance sectors while property and casualty insurers accounted for 48% of the pie. For instance, major players like Allstate operates their traditional offerings while delivering online insurance products via its subsidiary Esurance. As long as people are traveling by car, there will be a need for auto insurance. Even the most famously digital of digital insurance companies has a support team on staff for those customers who need person-to-person help. Telematics can also be used following an event (such as an accident) to determine fault and assess damage. For more information about even more disruptive technologies and industry trends, check out the blog: Insurance Industry: 12 Trends for 2019. Trip cancellation/interruption is the most popular travel insurance benefit among consumers. Visit the new blog post here: Insurance Industry: 12 Trends for 2020 in the New Normal. How does telematics technology work in insurance? 11. This doesn’t come as a surprise as, since 2018, the P&C market’s net income has been soaring. Common use cases involve monitoring driving behavior, assessing car condition, and tracking mileage. 12. Artificial Intelligence (AI) has the power to enhance data processing capabilities. https://www.pwc.com/gx/en/ceo-agenda/ceosurvey/2020/trends/insurance.html 16. In recent years, technology has also produced a different kind of “threat” to the traditional insurance business model: steep competition. Life and Health Insurance Trends for 2020 The life and health space in Insurtech is perhaps one of the most promising sectors in the insurance industry. In part 3 of this four-part series, we explained the complexities of mortgagee property claim payments. 19. One Inc620 Coolidge DriveSuite 200Folsom, CA 95630, General Contact: 866.343.6940Support Number: 888.774.8020Email: TheTeam@OneInc.comHuman Resources ContactEmail: HR@oneinc.com. As such, a decline in industry growth may be visible in 2020. The industry is changing and this stat shows that everyone involved should keep up. How much is too much? On a global scale, the company has over $1 trillion of assets under management as of September 2019. Insurers are driving change through awareness, education, and incentivization for communities (businesses, municipalities, and individuals) to invest in preventative, resilient infrastructure and procedures. Here are the key takeaways to keep in mind: Gone are the days when insurers relied on only one channel to distribute products. This small-yet-mighty trend is disrupting the insurance industry as well as the roads. Therefore, to achieve maximum security, insurers should address both the technical infrastructure and human vulnerabilities across all platforms and networks. While digital engagement is critical for any modern business, consumers continue to rate caring, competent, accessible customer service providers – real, live human beings – as a key differentiator among insurance companies. Two insurance use cases showing particular promise include training (for example, practicing customer service skills with a virtual policyholder) and gathering information from distant or hazardous settings (for example, virtually exploring an entire building to assess potential flood damage). Near real-time data will propel the growth of P&C insurance companies forward. Still, watch out for insurance challenges. In response to increasingly severe weather events and natural disasters, the industry is taking on a more proactive role to reduce the chances of injury, property damage, and liability, by updating risk assessment models and enhancing mitigative efforts. 2. The environment is a top concern among the majority of consumers. In exchange for this protection, policyholders will have to pay a certain amount of money (premium) to the insurer. Insurance Industry: 12 Trends for 2020 in the New Normal Last year, Auto coverage will likely shift its focus from individuals to vehicles. 1. Additionally, today’s new graduates do not tend to consider insurance as a career path, compounding the discrepancy even further. Insurance industry growth trends show that a multiple-business model will thrive this year. 88% of consumers demand more personalized insurance products. These advanced analytics can be used for a variety of purposes, including risk assessment, price optimization, fraud detection, personalized marketing, and claims prediction. Several new digital-first insurance companies have made a successful debut with this powerful age-group, but at least for now, traditional insurers still hold the majority of the market. Typically, they don’t have access to group benefits and this is something that life insurers can attend to. If the number of US residents traveling internationally (be it for leisure or business purposes) increases, the travel insurance industry will have a bright future ahead. 10. Insurance payments are going digital. To become more appealing to today’s jobseekers, employers must focus on modern career values, such as advancement opportunities, flexibility, company culture, benefits, and diversity. A recent Accenture report concluded that insurers using “intelligent solutions to reinvent the customer experience and to drive human-machine collaboration” earn ten-fold returns on their technology investments. Many policyholders welcome the opportunity to lower their premiums based upon their safe driving habits. Together with their successors – Gen Z (now entering their 20s) – the under-40 consumer group makes up over half the U.S. population. Over 66 million people in the US are protected when traveling. Compared … 2020 Insurance Industry Outlook As insurance firms adapt to maturing markets and economic turbulence, their growth depends on integrating technology and innovating business models. 2020 Insurance Trends: Good Vibrations for Agile Insurers. According to a new Deloitte report, customers represent the most disruptive force in the insurance industry today – more than any single technology. With the advent of modern … Virtual Reality (plus Augmented and Mixed Reality). Of course, traditional direct channels are not going away anytime soon and that signals some positive insurance brokerage industry trends. 69% of consumers would attach a sensor to their car to lower insurance premiums. Insurers need to continually monitor mobile and web trends, and refresh those platforms regularly - paying close attention to features such as navigation, appearance, available information, range of services, and clarity. Between 2015 and 2020, the travel insurance sector grew by an average of 1.9% per year. The common thread among these organizations is a blend of creativity and adaptation. MassMutual is also making the same impact by operating its wholly-owned startup, Haven Life. As with any innovative new technology, incorporating telematics requires a meticulous balance to ensure maximum benefits for the customer (advantageous pricing options), without undue exploitation or harm (privacy infringements). Based on recent trends and the rise of self-driving cars, auto insurance coverage may move away from insuring drivers to insuring the vehicle itself. Insurtech partnerships are on the rise. With $65 billion direct premiums earned/written and 9.76% market share, State Farm Group continues to dominate the market. Prudential Life is in the lead with $800 billion in assets in the US. Regarded as one of “the fastest technology adoptions in history,” micro-mobility – a blanket term for non-car personal transportation methods, such as manually and electrically powered scooters and bikes – is surging in popularity, and has quickly become a transit staple in cities across the globe. 3. Whether your organization is planning to augment reality or simply expand your current digital engagement capabilities, an effective 2020 digital strategy will hinge upon a strong customer focus. In the past few years, we all saw how ripe the insurance industry was for disruption. How can virtual reality help insurers in day-to-day business? The analysis provides an overview of the top trends in the life insurance sector for 2020 shaped by the strategies insurers are adopting to navigate and align with the insurance ecosystem of … Insurance can be classified as a commercial enterprise that is a major part of the financial services industry. The term “telematics,” at its most basic, refers to devices that merge telecommunications and information technology. Additionally, manufacturer-provided insurance (such as Tesla, Porsche, and Toyota), telematics, usage-based insurance, and peer-to-peer car-sharing have all prompted the industry to develop new solutions to meet the needs of modern drivers. Whereas auto, homeowners, personal liability umbrella, commercial general liability, workers’ comp, and health insurance policies may cover micro-mobility accidents – in many cases they do not. Augmented reality (AR) is a closely related technology that superimposes computer-generated images – and sometimes other sensory additions such as sounds or smells – over a real-world view. Mobile apps are changing the insurance account servicing landscape. We explored a variety of digital, cultural, and economic developments - from AI and blockchain to gig work and the cannabis business - and their potential impact on the industry. 24. The insurance industry is responding with a multi-pronged approach, starting from within. While most insurers are struggling to fill the employment gap, a few seem to have no trouble attracting talent. 25. Are new business models a threat to traditional auto insurance? Currently, it’s sitting at $58 billion, up from $39 billion in 2017. As the head of content at One Inc, Patricia is passionate about helping insurers continue to achieve success in a rapidly changing industry. The property and casualty (P&C) sector is the biggest insurance sector in the US. Companies like American Family and Nationwide already forged partnerships with insurtech startups, establishing a more collaborative industry in 2020 and beyond. Berkshire Hathway, who secured the second spot with $708 billion of assets, may take the lead in the future. It’s also important to note that most cyber-attacks involve at least one element of personal contact – usually unbeknownst to the targeted participant – which paves the way for a larger scale exploitation. So what does this insurance trend tell us? This trend can present challenges for the insurance brokerage industry. A big industry trend in 2020 will be the continued movement to centralize insurance … What does it mean to “go mobile” in insurance? This translates to a 78% coverage gap for insurers to fill. Direct-to-consumer online channels are also prevalent, eliminating the hassle to get car insurance. The gig economy could be a viable source of profit for the life insurance market. A 10.5% boost in net premiums was a contributing factor to the market growth alongside the $3 billion underwriting gain. All-in-One Insurance Policy. As we move further along into the digital age, this is one strong digital insurance trend to prevail this year and in the near future. Chatbots, the love-child of AI and machine learning, can interact with customers, assisting them with policy application or claims process. From insurance suppliers/brokers to online media, all of these will be utilized to establish financial literacy and security. As mentioned at the beginning of this article, the only way we’re going is forward. The All-In-One form of insurance is steadily turning itself in an emerging … One thing to expect for 2020 is a fair amount of M&A activity as the insurance companies and service providers to the insurance industry buy up the new competition. But going mobile is not a set-it-and-forget-it event. As the market grows, it would need more people to deliver sales and improve revenue. Exploring new customer segments such as the gig economy and Millennials is one way of breathing new life into premiums. But some are reluctant to hand over all their driving details in real-time - prompting several states to enact privacy statutes to protect consumers’ rights regarding telematics data. Generally speaking, insurers must obtain consent before analyzing a customer’s telematics data (although some anecdotes suggest the possibility of an ethically questionable “opt out” permission structure). This kind of innovative technology could also help the auto insurance industry extend coverage into untapped markets, making policies and premiums much more affordable for everyone. Auto insurance providers continue to adapt to the changing cultural approach to personal transportation. However, with the increased variety in pricing structures, expanded policy models, new vehicle technologies, and the blurring line between insurers, car makers, and insurtechs, an agile business strategy will be key for traditional carriers to maintain a competitive edge in this line of business. Consumer expectations change as rapidly as the technology itself, and today’s “modern” interface can quickly become tomorrow’s outdated relic. Personalization & data. What’s more, these people are protected by more than 46 million plans provided by travel insurance carriers and allied businesses. Insurance protects individuals (policyholders) against uncertain future events through insurance contracts. The insurance industry has traditionally been product-centric and slow in delivering advisor or consumer-centric solutions, but that is changing as we enter 2020. The global life insurance providers market is forecasted to reach $3.6 trillion by 2022. Will robots eliminate the need for humans in insurance? Currently, the lack of awareness about complex insurance products restrains the full growth of the market. In the US, only 10% of Millennials have a life insurance policy in place. Taking AR a step further, mixed reality (MR) allows the user to interact with augmented imagery. Telematics, chat bots, predictive modeling, touchless claims, and other areas of robotic process automation (RPA) are causing excitement - along with a bit of unease - across the insurance industry. An effective CX balances personalization, empowerment, and efficiency – using a combination of human and digital solutions – at every touchpoint throughout the customer journey. Unfortunately, the explosion of new road-users has impacted traffic congestion, and rider injuries and fatalities are on the rise. The data is then analyzed to create a detailed risk profile and to calculate rates accordingly. Is more data always better? As a result, insurance carriers will need to rely more and more on partners in 2020 who may not be traditional vendor insiders, but outsiders who have helped create digital ecosystems in … The insurance industry has endemic problems, such as inefficiency (policies are … In 2018, North America was the largest region to drive market growth, followed by the Asia Pacific. The days for a single business model for insurance are over. While security efforts have historically focused on servers and desktop computers, IoT and mobile have quietly emerged as the newest points of exposure. 12. Top Insurance Trends and Stats — A Quick Look, Property and Casualty Insurance Industry Trends. The insurers will guarantee payment to secure the policyholders’ financial situation during unfortunate events. What are some of the latest insurance trends for 2020? 23. Prudential Life is in the lead with $800 billion in assets in the US. However, because a complete core system replacement is often cost-prohibitive, most companies are instead taking a step-by-step approach to modernization. New business insurance … Emerging markets … Although new technology has already been introduced to the market, not everyone was able to adapt to the tech-driven shift. The National Association of Insurance Commissioners (NAIC) recommends all riders obtain scooter insurance to cover collision, liability, and medical costs. 4. By using wearables, smartphones, smart meters, and drone data capture, insurers should be able to handle policies and claims much better, as the latest insurance industry trends suggest. Note: This article has been updated with an op-ed followup to reflect how today's pandemic-related challenges have impacted these twelve trends. Many insurers already accept inbound premium payments from policyholders.