Last week we shared the top 10 changes in general insurance seen over the past 10 years. From regulation changes to drones being used for risk assessments, these fast-moving developments having transformed the landscape of insurance as we know it. Which begs the question, what next?
Here are our top 10 predictions for the next 10 years in UK general insurance:
1. Insurance as a service
Insurance as a service will take off – this will be led by the growth in internet connected devices that will generate data to enable insurers to move towards providing monitoring and prevention services.
2. Flexibility and pay-as-you-go
Consumers will see a greater range of personalised flexible policy terms and pay-as-you-go propositions.
3. AI decreasing fraud
More advanced artificial intelligence (AI) detection capabilities will see levels of insurance fraud decrease.
4. Insurers diversify to increase revenue
Insurers’ revenue sources will diversify to include a greater proportion of income from other sources such as finance and ancillary services.
5. Level 5 full automation driverless cars
Driverless cars - within the next 10 years we should reach level 5 full automation but how consumers take to this will be key to how fast the vehicles and usage are adopted.
6. Big data allows insurers to focus on specific risks
The regulator will make an intervention into the insurance market to prevent specific consumer segments from becoming priced out of the insurance market as greater data allows insurers to be increasingly focused on the primary risks they want to insure.
7. 5G will enable a new wave of insurer ‘big data’ programme
5G will be widespread in the UK by 2022 enabling the transfer of much greater volumes of data from internet connected devices and cars that in turn will create a new wave of insurer ‘big data’ programmes.
8. Insurance will become embedded in other non-insurance brands products
The role of the insurance brand will change as insurance begins to be embedded in other products and services (e.g. mobility) where non-insurance brands are more important from a consumer’s perspective.
9. More individual lifestyle protection
There will be a shift away from specific product lines to more individual lifestyle protection policies.
10. A focus on retaining customers, rather than fighting for new business
The customer service culture will become king with brands increasingly focusing on retaining customers, rather than fighting for new business.
These are exciting times, but with so much on the horizon it is more important than ever to be one step ahead of the game. With huge advancements in technology just around the corner, data insights will be essential to understanding how providers can deliver the insurance propositions and experiences that consumers will come to expect.
Identifying future trends and planning for them
Consumer Intelligence is already helping some of the UK’s leading insurance brands with horizon scanning with its unique approach and insight. In these times of extraordinary change being forewarned is forearmed has never been more relevant. Isn’t it time you looked to the future with Consumer Intelligence?
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