Are you someone who has always been aware of the changes in the insurance industry? If yes, you will probably have a clear idea of the fact that this industry is standing on the threshold of a profound and inevitable change. No, it is not a digital disruption as you may think. Brand new competitors, ambitious and onerous customers and a new set of challenges are all bringing about a huge transformation to the insurance industry.
We have engaged in several honest conversations with more than 200 C-suite insurance professionals and we’ve been able to analyse and identify few of the pivotal insurance industry trends that will shape the future of this industry in 2020. Let’s check out whether or not the future is bright for this industry.
#1: New perspective of customers leading to new solutions
There has been a massive change to the requirements, expectations, and knowledge of the customers within the last decade. Considering this change, how do you think that insurance companies can adapt to the changing demands of customers? It can’t be denied that the only disruptive force in the insurance industry is the customer. We live in the age of immediacy, constant evolutions in choices of customers and in such an age, if the industry doesn’t look forth its core services and products, it could never retain its customer base.
#2: A change in growth
Several researches have proved that there will be growth from both protective as well as preventative approaches, given the new range of products and services. Now the question is whether or not the innovative products and service-based strategies can bring about a change in the insurance industry. Selling protective products is a rather conventional approach and hence it is being said that growth will come from service-based models and products that concentrate on prevention.
#3: Disruption from new technologies
Technological change is inevitable but being just aware of the change and knowing how to react to the change is a different thing altogether. How are the insurers going to utilize technologies like blockchain, analytics or cloud to their benefit? As technologies keep coming in, there will certainly be disruption and hence the insurance companies should be aware of which technology to deploy for the best purpose. Once they’re not able to do so, they’ll be at the risk of being left behind.
#4: Strategic alliances are on the agenda
In 2018, merger and acquisitions hit unexpectedly high levels and companies have not just accessed new markets but have also tasted growth. The respondents of a survey agree to the fact that more than 50% of the growth of the insurance industry will be due to mergers and acquisitions. This will become a part of the long-term growth strategies of the companies. In case of businesses that are poorly integrated, they can never achieve predicted synergies. Customers mostly want their concerns to be addressed soon and hence any organization that is not able to address issues immediately will put itself in the backseat.