March 18, 2021
Trend Watch
What do insurance companies and supermarkets have in common?
From content square: “Considering very recent trends and looking only at the weeks ending March 15 and 8, we see that the main variations in the volume of transactions are recorded in the Supermarket sector (+33% increase in the number of transactions in one week, in strong acceleration), the Banking/Insurance sector (+26%) and, on the negative side, Tourism (-39% in strong negative inflection).”
The big picture: The Coronavirus has forced insurance digital, and it’s not going back. This opens up new opportunities for insurers as they have access to new data, and poses a challenge to any insurer that doesn’t have its digital presence up to snuff.
Read: What 4.4B Sessions Say About Coronavirus & Online Behavior
Industry Upgrade
Touchless claims for one of insurance’s oldest lines
Automation: The industry has come a long way since insuring rickety wooden trade ships, and now marine claims are getting similar treatment to personal lines. Watch out Lemonade, your world record might be hanging in the balance.
Industry Challenge
Weakening customer loyalty and increased competition are causing seismic change in insurance.
What they are saying: Weakened customer loyalty, the driving down of premiums by increased competition and the shift to digitization will cause seismic change in insurance over the next five years. Juniper Research recommends that large insurers focus on using insurtech solutions to improve customer interactions by creating data-driven models, or lose market share to newer, digitally-native vendors.
The big picture: Insurtech solutions are key for carriers, but the industry also needs to focus on insurtech that helps to fight the ‘race to the bottom’ instead of enabling it. Data and how it is managed is key to this fight.
Insurtech Outlook
Insurtech predicted to more than double its written premium by 2025
What they are saying: A new study by Juniper Research has found the total value of premiums generated by insurtech platforms – platforms with technology supporting insurance at the heart of their design – will exceed $556 billion in 2025, from $250 billion in 2020; growing by 123%.
There’s more to it: Insurtech is exploding in value, but an important factor is missing: New lines. The world is dramatically under-insured, and there are products that haven’t even been dreamed of yet… The new lines are going to drive those numbers way up.
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