Top Ten Trends in Insurance 2017

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The insurance industry is witnessing a slow but certain evolution due to disruptive technologies, external market forces, and their consequent impact on insurance business and operating models.
This Slideshare deck has the overview of the top 10 insurance trends that will be strategic for firms in the near term.

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Top Ten Trends in Insurance 2017

  1. 1. Insurance Trends for 2017
  2. 2. 2Copyright © Capgemini 2016. All Rights Reserved Insurance Trends 2017 | December 2016 | Financial Services Nascent Technologies 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 being leveraged 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
  3. 3. 3Copyright © Capgemini 2016. All Rights Reserved Insurance Trends 2017 | December 2016 | Financial Services 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
  4. 4. 4Copyright © Capgemini 2016. All Rights Reserved Insurance Trends 2017 | December 2016 | Financial Services 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 Source: Capgemini Financial Services Analysis, 2016;
  5. 5. 5Copyright © Capgemini 2016. All Rights Reserved Insurance Trends 2017 | December 2016 | Financial 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 Source: Capgemini Financial Services Analysis, 2016;
  6. 6. 6Copyright © Capgemini 2016. All Rights Reserved Insurance Trends 2017 | December 2016 | Financial Services 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 $46M Economic 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
  7. 7. 7Copyright © Capgemini 2016. All Rights Reserved Insurance Trends 2017 | December 2016 | Financial Services 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 Transparency Research tools that create market transparency and increase pricing pressure Direct Small Business Insurance Direct channels and online comparison platforms for small business market Chatbots Software programs which can communicate with humans using AI 1.5 mn The approximate number of Americans who enrolled in health insurance through GetInsured
  8. 8. 8Copyright © Capgemini 2016. All Rights Reserved Insurance Trends 2017 | December 2016 | Financial Services 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/ Distribution Marketplace platforms, Value-Adding Intermediaries Underwriting Predictive software, Underwriting tools Servicing Policy management apps, Property management apps Claims Claims 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
  9. 9. 9Copyright © Capgemini 2016. All Rights Reserved Insurance Trends 2017 | December 2016 | Financial Services Blockchain is finding use cases in insurance that stand to improve operational efficiency Source: Capgemini Financial Services Analysis, 2016; Smart Information Assets Smart Contracts Claims Fraud Detection Decentralized Autonomous Organizations
  10. 10. 10Copyright © Capgemini 2016. All Rights Reserved Insurance Trends 2017 | December 2016 | Financial Services 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
  11. 11. 11Copyright © Capgemini 2016. All Rights Reserved Insurance Trends 2017 | December 2016 | Financial Services 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 Insurance Aviva - Homeserve Commercial Insurance Munich Re - HSB IoT Accelerator
  12. 12. 12Copyright © Capgemini 2016. All Rights Reserved Insurance Trends 2017 | December 2016 | Financial Services 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
  13. 13. The information contained in this presentation is proprietary. © 2013 Capgemini. All rights reserved. www.capgemini.com About Capgemini Now with 180,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR 10.573 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.

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