Rapid technological advancement is changing the insurance industry. Insurance companies need to make themselves aware of the latest trends poised to disrupt their sector. Only then can they develop a strategic plan to innovate and compete against rival organizations. Read on for trends expected to change the insurance industry as we pass through 2018.
Personalized Insurance Premiums
In previous years, insurance premiums were often generic. For example, two neighbors living on the same street, driving the same car, of the same age and gender, would likely have near identical premiums. However, this is not an accurate representation of their risk. Several other factors can affect an individual’s relative level of risk, and technology now allows insurers to tap into that data. Wearables such as Fitbit watches, smartphone apps, and telematics can all provide information to construct a premium specific to the individual’s lifestyle.
All-in-One Insurance Policies
The public has grown weary of multiple insurance policies. They need a policy for their car, for their home, for their health, for their prized possessions, and sometimes even their pets. The sheer number of policies can be dizzying. Compounding their frustration is many individuals use one insurance company for their policies because they can bundle to get discounts. As a result, people want a package deal. One policy to cover all of their needs in one location. With the use of artificial intelligence (AI), insurers could make recommendations based on how different areas of coverage interact with each other.
Blockchain Ledger Technology
The blockchain era is here, and commercial industries are jumping onboard. Blockchain technology allows for cryptocurrency transactions. While this will not disrupt how customers interact with insurers, it will disrupt the existing platforms for wholesale, commercial, and reinsurance transactions. This is noteworthy because these particular areas have yet to advance into the internet era.
There are significant changes coming to the insurance industry, and providers need to prepare and adapt. With our expertise, Actec can help insurers navigate the challenges ahead. To learn more about the shifting insurance landscape, contact us today.