Home and Auto Insurance Industry - Innovations and Players

Goals

To find, for the insurance industry, some product and service innovation ideas. Specifically the latest disruptions in the auto and home insurance, and some of the newest and most innovative ideas in home and auto insurance. Ideally this would surround technology based on big data, and deep machine learning in the insurance world. To also understand who the top players are both old (known as incumbent) and emergent that are behind these new ideas and disruptions. To also find out who the top players are that represent the "old guard" (which is known as incumbents), and finally to understand some of the most relevant trends in consumer culture or politics causing the need for new, innovative ideas in the insurance industry.

Early Findings

  • The free downloadable report from DeLoitte, considers whether "these disrupters are threats or opportunities for incumbent insurers. It includes the hot topic of how telematics-based insurance can evolve beyond a niche product, and which players are best positioned to capitalize on this opportunity. The report also looks at new markets, such as peer to peer networks which are enabled by social media and threaten general insurers’ underwriting income by encouraging customers to self-insure."
  • McKinsey states that the future of digital insurance is bright and increasingly determined. Surveying the landscape, a few interesting themes emerge. Ecosystems, the Internet of Things, and artificial intelligence will each play a significant and interconnected role.
  • To succeed in ecosystems, insurers will have to take a hard look at their traditional roles and business models and to evaluate opportunities to partner with players in other industries.
  • By 2030, artificial intelligence and its related technologies will have a seismic impact on all aspects of the insurance industry. Distribution: Smart contracts enabled by blockchain will instantaneously authorize payments from a customer’s financial account. Highly dynamic, usage-based-insurance products will proliferate and will be tailored to the behavior of individual consumers. And the role of agents will transition to process facilitators and product educators.
  • Underwriting and pricing: Manual underwriting will cease to exist for most personal and small-business products across life and P&C insurance. Underwriting will be reduced to a few seconds, as the majority of the process is automated and supported by a combination of machine- and deep-learning models built within the technology stack. Sophisticated proprietary platforms connect customers and insurers and offer customers differentiated experiences, features, and value.
  • Claims: Carriers will achieve straight-through-processing rates of more than 90 percent and dramatically reduce claim-processing times to hours or minutes, from days. Internet of Things sensors and an array of data-capture technologies, such as drones, will largely replace traditional, manual methods of first notice of loss. Customer interaction with insurance-claim organizations will focus on avoiding potential loss.
  • For many insurers, aggregators have become, in effect, the customer-facing side of their businesses, and for others, a huge potential disruption. The implications for insurers are significant; however, many insurers have yet to develop a full understanding of the aggregator landscape and characteristics of top performers, as well as the threats to the aggregator business model.
  • Commercial-insurance executives recognize the benefits of digital but face several obstacles in making headway. Large incumbents lag, because the complicated nature of underwriting and claims often requires human judgment and interaction, transactions are sometimes low volume and bespoke in nature, and legacy IT systems and processes make the transition resource intensive and complex. What is more, commercial insurance has historically been slow to change, and a lack of companies with clearly demonstrated impact from digital has left many executives focused on their own plans of action.
  • New Customer Acquisition. Technology allows insurers to be smarter and more strategic about how they reach out to new customers. From insurance aggregators that offer a variety of products to customer segmentation that uses data to know which customers to reach out to, technology makes customer acquisition less of a shot in the dark and more strategic. This is shown with the growth of online insurers, especially given that millennials are twice as likely to purchase insurance online than other generations.
  • Claims CX. Claims are often seen as the place where insurers lose money, but with technology it’s actually possible for claims to help make money. Auto insurers who provide consistent best-in-class experiences generate 2-4 times more growth and see 30% higher profitability. Automation can reduce the cost of a claims journey by as must as 30%. Technology can improve every aspect of the claims process. Using pre-populated claims forms and apps makes it easier for customers to submit information without having to answer repetitive questions. Technology also introduces new ways to interact, such as agents texting customers with status updates. Even small things like paying claims electronically instead of by check can make a difference for customers and make their lives easier.
  • Seven technologies that are disrupting the insurance industry are infrastructure and productivity, online sales technologies, advanced analytics (AA), machine learning, The Internet of Things, distributed ledger technology, and virtual reality (VR).
  • In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address your goals.

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