How are Millennials Changing the Insurance Industry?
Generally tech-savvy and data-forward, millennials are shaking up the insurance industry both as consumers and insurance professionals.
January 11, 2023
2:30 pm
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Generally tech-savvy and data-forward, millennials are shaking up the insurance industry both as consumers and insurance professionals.
2023 marks the beginning of – to borrow a phrase from the state of Missouri – the “show me” era of insurtech. Venture investment is drying up – more than a quarter of insurtechs are likely to exit the market, Forrester predicts – and insurers are looking for innovations that will reach financially pinched customers.
Recent research by ACORD, the global standard-setting body for the insurance industry, highlights the key drivers of high performance among top insurers, including the advantages of scale, the importance of talent and the volatility of investments to rely on.
Covid-19 exacerbated long-simmering issues in the insurance industry, in particular around the challenges for organizations to create a clear value proposition and meaningful differentiation to actually stand apart from the competition. A brand identity that delivers both employee and customer value as well as go-to-market performance has often proved elusive for many players in the sector.
Was it fun while it lasted, or is the real fun just beginning? That’s the question on the insurance industry’s mind as it enters 2023.
After years of growth, the US insurtech market faces a sharp decline in valuations. How should established insurance carriers respond?
Consumer travel insurance markets have been heavily impacted by the COVID-19 pandemic, with particular disruption to international travel by older travellers. Both take-up rates and the types of policy bought have changed, and consumers are now more aware of the risk posed by pandemics.
As automotive manufacturers increase efforts to unveil and promote new electric vehicle models, adoption has ramped up sharply. Electric vehicle sales have grown, accounting for roughly 4.6% of the new light-vehicle registrations in Q1 2022, which is up from 2.6% for the full year in 2021 and 1.5% for the full year in 2020. California currently leads the way, with electric vehicles accounting for nearly 15% of all light vehicle sales in the state in Q1 2022 and roughly 39% of electric vehicle sales nationwide.
WTW expects dealmaking to remain active despite ongoing uncertainty and major headwinds, with recession fears triggering a ‘small item effect’ as larger deals fall out of favor.
The future of underwriting is linear and outsourced, insurtech leaders from Hippo, Argo, Planck, Instabase and Aite Novarica said, in remarks at InsurTech NY’s Nov. 15 event focused on underwriting data.
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