Thought Leadership

In 2021, climate-change actions by U.S. regulators will create both challenges and opportunities for insurers.

Electric vehicles’ market share may surge from 2% to more than 25% by 2035, with major implications for drivers, insurers and a host of businesses.

This is an exciting era for insurance, and actuaries have an opportunity to expand and redefine their roles in these changing times.

Big Tech companies are breathing down the necks of insurance companies. Giants like Amazon, Apple and Google have upped their innovation games in recent years, setting the customer experience bar higher than ever with their data-centric, consumer-focused business models.

With the outbreak of COVID 19, the use of telehealth services for health diagnoses and treatment surged in 2020. In fact, according to the Centers for Disease Control and Prevention, during the first three months of 2020, the number of telehealth visits increased by 50%.

Almost one year into lockdown and with no end to restrictions likely for the foreseeable future, the outlook for many does seem bleak. But there are silver linings that are becoming increasingly evident. One of the most apparent is the sheer display of true British resolve, where people have found innovative ways to start their own small businesses after being furloughed or made redundant.

Accenture research suggests that for North American insurers, customer experience and distribution innovations deliver the best returns. Since agents play an outsized role in the customer experience and expanding distribution, we recommend insurers focus on innovations that will empower agents throughout the customer journey.

Timid steps are giving way to massive reorganizations and wholesale redesigns of compensation programs.

The idea of the core taking a backseat is a myth: Core systems are not necessarily the drivers of digital projects, but they are the enablers.

Now that conditions are beginning to settle, we need to look at 2021 as a “rebuilding” year; more of a reset than a resumption of what was.

The reality is that almost all insurers believe that digital transformation is essential. This belief has only been reinforced by the pandemic.

Innovation is integral to the success of an insurance company today. With the increased pace of change in society, climate and technology – exacerbated by the COVID-19 pandemic and the work from home era – innovation has become a core driver of the short-term and long-term success of insurers.

Adapting to new ways of working and thinking is never easy, but the insurance industry is ripe for a revolution, and it is up to industry leaders to understand the trends that will lead the way.

Beyond digital transformation based on largely proven technology, insurers must patiently explore the capacity of emerging technologies, such as AI and Big Data, for reshaping business processes over the longer term.

Findings from the Xpedition Innovation Equation Report clearly demonstrate the recognition amongst insurance professionals of the importance in delivering omnichannel customer engagement.

Insurance policies that are sold online need to be packaged and priced differently than those that rely on face-to-face sales.

The only way to truly shift the insurance industry towards more diversity is by being open and honest about failures, just as much as successes.

Experts from global reinsurer SCOR have concluded that pandemics are uninsurable due to insurers not having the capacity to absorb such loss accumulation.

Assicurazioni Generali Chief Executive Officer Philippe Donnet is seeking to overhaul the top ranks at Italy’s largest insurer to increase control on key businesses and speed up growth, according to people with knowledge of the matter.

There are three key forces that the cloud can unleash: speed of operations, an intelligence premium and innovation.

Ecosystems should produce key changes in two areas: how we touch customers and how we organize internal processes.

Once the COVID-19 crisis is in the rearview mirror for most businesses, it will be up to insurers to prove that they are more than an additional cost in a challenging economy.

Revamping procurement policies and procedures enables carriers to quickly strengthen their support for environmental and social sustainability.

Today, insurers succeed by offering products. In the future, insurers will win by providing access to risk prevention and assistance services.

Widespread concern is no surprise as rising insurance costs—coupled with sky-high verdicts—have also been cited as the reason many fleets have gone out of business. While many factors that contributed to rising rates are beyond the fleet’s control, there are ways to improve your company’s risk profile—and technology can help.

At the beginning of the pandemic, there were perhaps few institutions that looked less well equipped to function under social distancing than Lloyd’s of London. Synonymous with antiquated practices and the primacy of dealing face-to-face, business at Lloyd’s should have ground to a halt this year.

With the re/insurance industry still reeling from the shock of COVID-19, data analytics provider Verisk Analytics says a focus on the future of claims is essential in order to adapt well to the pandemic.