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Top Trends in Property and Casualty Insurance: 2020

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Within a somewhat harsh macro environment, the P&C insurance landscape is evolving quickly. Policyholders are looking for more personalized offerings through the platform/channel of their choice. Now, more than simply a concept, the sharing economy is gaining ground and opening new market opportunities for insurers. Non-traditional players have actively entered the insurance space.
As P&C insurers work to manage the evolving business landscape, they are taking steady transformational steps to become an Inventive Insurer by developing direct-engagement channels with customers. Moreover, insurers are leveraging AI-based tools to create auto-adjudication systems and techniques for quicker and more effective underwriting and claims processing. Firms are also developing sophisticated methods for understanding the evolving risk scenario to accurately price products and create customer awareness. These approaches can help insurers provide superior customer experience during critical moments of truth.
Top Trends in Property and Casualty Insurance: 2020 explores the innovative approaches future-focused insurers are taking to stay competitive within today’s dynamic business landscape.

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Top Trends in Property and Casualty Insurance: 2020

  1. 1. Top Trends in P&C Insurance: 2020 December 2019 Link: https://www.capgemini.com/top- trends-in-2020/
  2. 2. 2© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019 Top Trends in Property and Casualty Insurance for 2020 by Capgemini P&C insurers are responding to shifting market dynamics Source: Capgemini Financial Services Analysis, 2019 Enhancing operational efficiency Changing business environment Evolving customer preferences Insurers explore auto-adjudication in personal lines, to process more complex claimsTREND 9 Insurers are using blockchain to create a more integrated insurance ecosystemTREND 10 More insurers use the cloud to deploy core systemsTREND 8 Insurers launch new offerings suited to the sharing economy Non-traditional firms slowly but steadily enter the insurance space TREND 5 TREND 7 Regulations, customer concerns necessitate insurer focus on data privacyTREND 4 A rise in natural catastrophes drives insurers to update risk assessment modelsTREND 1 Insurers are leveraging AI-based solutions to improve risk management capabilitiesTREND 2 Emerging risk landscape TREND 6 InsurTech investment is on the rise; late-stage startups draw the most attention TREND 3 Insurers offer direct-engagement channels to small and micro-commercial businesses
  3. 3. 3© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019 Source: Capgemini Financial Services Analysis, 2019 Trend 1: A rise in natural catastrophes drives insurers to update risk assessment models Business Environment Operational Efficiency Risk Landscape Customer PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini Global natural disasters have spurred the industry to augment risk-assessment techniques for more accurate pricing – and to narrows the coverage gap 3© Capgemini 2019. All rights reserved | Reduce losses Close coverage gaps Price optimally Upgraded risk- assessment techniques - benefits Estimate risk more accurately Plan product pipeline strategically Create customer awareness
  4. 4. 4© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019 Trend 2: Insurers are leveraging AI-based solutions to improve risk management capabilities Source: Capgemini Financial Services Analysis, 2019 Insurers use AI to strengthen assessment and risk monitoring to focus on prevention Business Environment Operational Efficiency Risk Landscape Customer PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini Key benefits of AI-based solutions in risk management Continuous risk assessment Real-time risk monitoring Risk prevention Better pricing and profits Mitigates loss incident severity and frequency
  5. 5. 5© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019 Trend 3: Insurers offer direct-engagement channels to small and micro-commercial businesses Source: Capgemini Financial Services Analysis, 2019 5© Capgemini 2019. All rights reserved | Business Environment Operational Efficiency Risk Landscape Customer PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini Easier to access underserved markets such as the gig economy Operational and cost efficiencies Enhanced customer experience Advantages of direct-engagement channels Direct engagement channels offer personalization and convenience to small- and micro-commercial business owners who purchase business insurance similarly to their personal lines
  6. 6. 6© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019 Source: Capgemini Financial Services Analysis, 2019 Trend 4: Regulations, customer concerns necessitate insurer focus on data privacy 6© Capgemini 2019. All rights reserved | As insurers leverage data to improve processes across the value chain, they must also address data-privacy concerns from customers and regulators Business Environment Operational Efficiency Risk Landscape Customer PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini Regulatory pressure is increasing, and heavy penalties are levied for data breach incidents Policyholders are becoming more aware and worried data privacy However, innovative offerings require access to a variety of data
  7. 7. 7© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019 Trend 5: Insurers launch new offerings suited to the sharing economy Source: Capgemini Financial Services Analysis, 2019 7© Capgemini 2019. All rights reserved | Business Environment Operational Efficiency Risk Landscape Customer PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini Potential benefits of new insurance offerings for the sharing economy Increase users’ trust in sharing economy Generate new revenue streams for insurers Enable millennial/ insurer relationships Insurers consider innovative new offerings as sharing-economy developments open opportunities
  8. 8. 8© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019 Trend 6: InsurTech investment is on the rise; late-stage startups draw the most attention Source: Capgemini Financial Services Analysis, 2019 8© Capgemini 2019. All rights reserved | As InsurTechs become a primary source of industry innovation, interest in mature and established firms is growing Business Environment Operational Efficiency Risk Landscape Customer PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini Insurance firm investment arms Venture capitalists Incubators/ accelerators BigTechs Who is investing in late-stage InsurTechs?
  9. 9. 9© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019 Advantages of non- traditional firms Access to customers’ data Have earned customers’ trust Focus on robust ecosystems Trend 7: Non-traditional firms slowly but steadily enter the insurance space Source: Capgemini Financial Services Analysis, 2019 9© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019 Business Environment Operational Efficiency Risk Landscape Customer PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini With keen customer insights and superior digital distribution capabilities, non-traditional firms have the potential to carve significant market share from traditional insurers
  10. 10. 10© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019 Trend 8: More insurers use the cloud to deploy core systems Source: Capgemini Financial Services Analysis, 2019 10© Capgemini 2019. All rights reserved | More insurers are using the cloud to deploy core systems so they can improve digital agility and enhance operational efficiency Business Environment Operational Efficiency Risk Landscape Customer PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini Benefits of cloud-based core systems Enhanced business agility Higher operational efficiency Stability Better customer experience Cost savings 24 x 7 system availability even during times of catastrophe
  11. 11. 11© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019 Trend 9: Insurers explore auto-adjudication in personal lines, to process more complex claims Source: Capgemini Financial Services Analysis, 2019 11© Capgemini 2019. All rights reserved | Business Environment Operational Efficiency Risk Landscape Customer PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini Benefits of auto- adjudication After the success of auto-adjudication for basic automotive claims, insurers are exploring emerging technologies to automate more complex claims
  12. 12. 12© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019 Trend 10: Insurers are using blockchain to create a more integrated insurance ecosystem Source: Capgemini Financial Services Analysis, 2019 12© Capgemini 2019. All rights reserved | Blockchain solutions can be used to build a more integrated insurance ecosystem with simplified processes and streamlined information exchange Business Environment Operational Efficiency Risk Landscape Customer PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini Lower operational costs Streamlined information exchange Real-time access to information Better transparency and security Key advantages of blockchain technologies
  13. 13. A global leader in consulting, technology services and digital transformation, Capgemini is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of over 200,000 team members in more than 40 countries. The Group reported 2018 global revenues of EUR 13.2 billion. About Capgemini Learn more about us at www.capgemini.com This message contains information that may be privileged or confidential and is the property of the Capgemini Group. Copyright© 2019 Capgemini. All rights reserved. People matter, results count.

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