Abstract
This white paper is a metastudy of how a range of disruptive technologies will combine to transform the insurance industry and the products it produces. The paper suggests ways in which insurance as an industry and as a product needs to react to these waves of disruption. Some ideas are; (i) Insurance will be predominantly sold as risk-based service rather than a one-off product, (ii) The core skillset of insurers will become the ability to create an extremely client web interface, friendly and use this to proactively engage with clients, (iii) ‘Dynamic Insurance’ will become common – whereby client activity is monitored by networked telemetrics and is used in real-time to change risk premiums, (iv) Insurers will use a wide range of data information about clients, including social media data, obtained from a wider ‘eco-system’ of linked companies, (v) Most clients will have individually risk–rating for premiums, (vi) Surviving insurers will provide a range of interactive and useful services, (vii) Premiums from auto-insurance will start to decline by 2022, and the car insurance industry as it is now structured will probably disappear by 2030, (viii) Up to 80% of all the activities insurance workers currently do will probably be replaced by software by 2026. However the expansion of other areas within insurers will probably mean minimal job losses for those insurers who survive, (ix) Insurers have to learn to engage with customers in a new way, as most currently only have shallow, unproductive, and infrequent customer contact.
Published Version
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