This is a time of radical disruption in insurance. In 2018, global insurance premiums totalled $5 trillion US Dollars.
This is expected to grow by 3% from 2019 to 2020. By 2029, it’s predicted that Asia-Pacific will rise to account for 42% of global premiums, with China accounting for 20%. This dynamic market shift will present opportunities for new entrants. Annual funding in Insurtech has risen dramatically, from under $100B in 2014, to over $250B in 2018.
Like many other industries, insurance is facing radical digital disruption and is going through massive readjustment. Traditional insurance companies are facing increasing competition from new, smaller players.
These are providing customers with reduced costs, improved efficiency, and expanded insurability through new measuring and controlling tools and more accurate price risk. Technology innovation like AI, Autonomous Vehicles, Smart Devices, AR/VR, Blockchain and IOT will change the insurance industry radically over the next ten years.
This Riptide report explores emerging signals of change and how these point to growth opportunities for companies. The future battlegrounds in insurance will be at the intersection of where new tech and meets emerging consumer needs. Tomorrow, people will want faster, better, fairer, more flexible insurance products and services that fit seamlessly around their lifestyles, behaviours and interests.
There are six Global Drivers impacting the insurance industry. These macro drivers are changing the dynamics of how people live, work and play.
One World: The global nature of the world means that change happens instantly and people are hyper-connected.
Planet Alert: Climate Change is one of the biggest challenges facing humanity today and brands that win will play a key role in alleviating it.
Urban Mindsets: We are now an urban species with a projected one in every three people living in cities by 2030.
Humankind Tech: Advances in tech, like driverless cars and AI, will reshape how people live, travel and work.
Law+Disorder: The world is becoming more fragmented and fractured and people are aggressively taking on old institutions and ideas.
Older Heads: the world’s population is getting older, placing greater demands on healthcare.
There are six consumer shifts happening which will shape the future of insurance: Health and Wellness, Sharing and Connectedness, Security, Personalisation, Seamlessness and Speed, Self
Optimisation and Sustainability continue to gain global significance.
We have identified six future insurance opportunities, each rooted in a consumer need.
1. Agile Rules: People will choose insurers who give total freedom and flexibility in how they offer protection. This helps overcome two of the key pain points; slowness and rigidity. We are seeing more on demand, modular, real-time insurance options available and these will accelerate in future. Brands playing here are Trov, Embroker, Cuvva, Zego, DeadHappy.
2. Mysurance: People will want more personalised, unique insurance relationships that make them feel valued and rewarded. This helps overcome the pain point of insurance feeling homogenous and boring. We are seeing more brands targeting niche interest groups and offering more personalised policies and these will get more specific in future. Brands playing here are Next, MetroMile, Root, BuzzVault, FitSense.
3. Powered People: People will want better ways to feel more connected to others. The peer-to-peer insurance model is disrupting how things have always been done. Brands playing here are Bandhoo, Laka, Teambrella, Bought by Many.
4. Ahead of the Game: People will want smarter solutions that help make life more seamless and smooth. The advancement of AI and tech like driverless cars are reshaping insurance, Brands playing here are FloodFlash, Avinew, Panzly, Ethos.
5. Predict and Prevent: People will want insurers to help predict and prevent danger more accurately, so they can feel more secure in life. People want to feel more safe and comfortable and personal security is gaining in importance. Brands that are playing here are Neos, Attestiv, Shift, Heartbeat.
6. Inside Track: People will want insurers to be more transparent, fair and open to help them feel they are getting the best deal. The insurance category has low trust, which in future, will change as more and brands prove their credentials. Brands playing here are PAL Network, Wrisk, Nsure, Alan.
Read the full report here
