The insurance industry is dynamic in nature and is characterized by rapid technological advancements, increasing customer expectations, and disruptive newcomers redefining the marketplace. All these factors force companies in this industry to focus on addressing challenges, growing top-line sales, bottom-line profitability, and competing in the immensely competitive landscape. Insurance companies have a lot on their plates and the industry is experiencing a rapid evolution. In this article, we have offered insights into insurance industry overview and insurance industry trends that are affecting market growth.
Our reports, which offer a comprehensive insurance industry overview, reveal the fact that the industry is going through turbulent times with challenges facing the equity market, the sudden lowering and increasing interest rates, and tightening regulatory changes. Meanwhile, with the increasing consumers’ shift towards offline and online research, the race to implement digital processes is heating up. Such insurance industry trends force companies to tweak and adjust their business strategies and models.
In terms of geography, mature markets like North America and Western Europe have exhibited an extremely slow rate of growth compared with emerging markets. However, companies looking for opportunities to grow in the global insurance market can explore both the developed markets as well as the emerging markets.
Insurance Industry Trends
Transforming risk modeling
With the advent of big data and machine learning, efficiency in the insurance industry has doubled. There are several insurance companies who are trying alternative risk modeling approaches by leveraging online content, social web, connected devices, wearables, and other forms of next-generation data to provide alternatives to traditional credit scores. This is one of the most advanced insurance industry trends that will re-define the experience of the customer.
Growth of cyber insurance
Analysis of the insurance industry overview suggests that this industry is not free of multiple data breaches. Such cybercrimes and events damage reputations and put employees and customers at risk. This is leading to the evolution of the market for cyber insurance. Cyber insurance provides coverage for stolen credit cards, social security, and driver’s license numbers, which is not included in general liability policies.
Insurance and technology
Advanced analytics will make premiums highly personalized and will soon be powered by technologies like mobile enabled InsurTech apps, Internet of Things, and wearables. With the help of such innovative devices, the market is poised to grow strongly over the next five years. These devices will help respond proactively with highly personalized interventions. Technologies like drone and imaging technology will also allow insurers to obtain high-definition images for accurate and remote property identification and analysis.