Top Ten Trends in Insurance 2017

Insurance Trends for 2017

2Copyright © Capgemini 2016. All Rights Reserved

Insurance Trends 2017 | December 2016 | Financial Services

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Insurance Trends 2017

Insurers are leveraging digital and mobile for risk management and better customer experience

New products are being designed by insurers for the sharing economy

Insurers are using value-added services for differentiation and building customer relationships

Advanced data analytics is beingleveraged for driving profitability and enhancing customer experience

Insurance distribution is being redefined due to tools creating greater market transparency and new channels such as chatbots

Value chain disaggregation is creating new InsurTech partnership opportunities and greater need for customer engagement

Insurers are exploring automation and Artificial Intelligence applications across the value chain

Blockchain is finding use cases in insurance that stand to improve operational efficiency

Augmented reality is being explored for multiple applications in insurance

Internet of Things (IoT) is finding active interest from insurers as it enables new models and creates a strong data pool

Insurance Trends 2017



Insurers leverage digital and mobile for risk management and customer experience

Source: Capgemini Financial Services Analysis, 2016;

Life Insurance

P&C Insurance

Health Insurance

M-Health and telemedics,population health management,provider-payer integrated management

Increase in mobile-based products and services provided by InsurTech firms

Driver feedback apps,Informative apps on environment risks,GPS-enabled emergency assistance



Insurers are using value-added services for differentiation and building customer relationships

Life and Health Insurance Property and Casualty Insurance

Health management apps

Customer care packages

Enabling cost savings

Enabling healthcare access

Allied services

Home monitoring and roadside assistance

Concierge services

Property selection and management

Lifestyle management

Enabling cost savings

Allied services




Advanced data analytics is being leveraged for driving profitability and customer experience

Automated Underwriting

Insight-Driven Profitability Strategies

Claims Optimization

Driving Profitability Customer Experience

Personalized Offerings

Streamline Front-End Processes

Agent Empowerment for Better Customer Service




New products are being designed by insurers for the sharing economy

Insurers are partnering with ride-sharing companies to offer coverage at all stages of the trip

A range of InsurTech firms are offering products for home-sharing

$46MEconomic impact of Uber’s operations in Chicago in one year

Source: Capgemini Financial Services Analysis, 2016; http://www.pco-bcp.gc.ca/index.asp?lang=eng&page=innovation&doc=rpt1/index-eng.htm#7



Insurance distribution is being redefined by new channels and digital tools

Source: Capgemini Financial Services Analysis, 2016; https://www.getinsured.com/default/about; https://letstalkpayments.com/80-hottest-insurancetech-companies-shaking-up-the-trillion-dollar-insurance-industry/

Market TransparencyResearch tools that create market

transparency and increase pricing pressure

Direct Small Business InsuranceDirect channels and online comparison

platforms for small business market

ChatbotsSoftware programs which can

communicate with humans using AI

1.5mn

The approximate number of Americans who enrolled in health insurance through GetInsured



Value chain disaggregation is creating need for partnerships and better customer engagement

Source: Capgemini Financial Services Analysis, 2016; https://letstalkpayments.com/80-hottest-insurancetech-companies-shaking-up-the-trillion-dollar-insurance-industry/

DistributionMarketplace platforms,

Value-Adding Intermediaries

UnderwritingPredictive software, Underwriting tools

ServicingPolicy management apps,

Property management apps

ClaimsClaims handling, Fraud

detection, Claims reporting

Increasing distance between insurers and customers and diluted brand loyalty as customers adopt one-stop apps for buying and managing all their

policies

Need for developing the right partnerships and integrating with multiple partners

Increase in focused specialization by insurers



Blockchain is finding use cases in insurance that stand to improve operational efficiency


Smart Information Assets

Smart Contracts

Claims Fraud Detection

Decentralized Autonomous

Organizations



Insurers are exploring automation and Artificial Intelligence applications across the value chain

Firms have to enhance technology infrastructure

Source: Capgemini Financial Services Analysis, 2016

Quicker, error-free transactions

Data standardization across value chain

More focus on front-office solutions

Speedy claims processing



Internet of Things (IoT) is finding active interest from insurers for building data and new models

$235 bn

Size of the smart home market by the end of 2016

Source: Capgemini Financial Services Analysis, 2016; “What opportunities do smart homes provide for insurers?”, Cindy De Armond, John Mulhall, May 18, 2015, accessed October 2016 at http://www.propertycasualty360.com/2015/05/18/what-opportunities-do-smart-homes-provide-for-insu

Life and Health

State Farm Connected Care Program

Home InsuranceAviva - Homeserve

Commercial Insurance

Munich Re - HSB IoT Accelerator



Augmented reality is being explored for multiple applications in insurance

Reduces training costs

Attention grabber for marketing

Customer insights from AR usage pattern

Source: Capgemini Financial Services Analysis, 2016; “ Augmented/Virtual Reality to hit $150 billion disrupting mobile by 2020”, Digi-Capital, accessed October 2016

Claims investigation and reporting

$120 bn

Estimated revenues from Augmented Reality by 2020

The information contained in this presentation is proprietary.© 2013 Capgemini. All rights reserved.

www.capgemini.com

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Date post:	16-Apr-2017
Category:	Economy & Finance
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Top Ten Trends in Insurance 2017

Economy & Finance