What Does the Future Hold for Insurance?

Jonathan KalmanPresident of Insurance Solutions

Predictions for Insurance in 2024

#1Customer Centricity will be the dominant strategy for insurers.

Key Take Away:New business processes will

need to be designed, implemented and adapted.

#2Customer Expectations

are high and getting higher.

Key Take Away:Design from the customer’s perspective, and design for

flexibility.

#3Risk Management methods will

shift from an aggregated view to a transaction or unit economics level.

Key Take Away:Risk managers will demand

operational, financial and transaction data at their fingertips.

#4Market volatility will continue unabated, creating investment

opportunity and placing increased pressure on earnings.

Key Take Away:Operational Performance will be

under a microscope, putting pressure across all functional areas.

#5Fraudulent behavior will continue to

evolve and become more sophisticated affecting all insurance

products.

Key Take Away:Fraud processes will require constant

vigilance and adaptation, and will push into underwriting (and earlier).

#6The pace of industry consolidation

will accelerate.

Key Take Away: The ability to consolidate systems

and processes will be a critical core competency.

#7Carriers using analytics at the

center of their business strategy will outperform their peers.

Key Take Away: Underinvesting in analytics (and data) will come at a great cost.

#8Digital Channels will dominate all

customer acquisition and servicing.

Key Take Away: A unified, seamless customer

engagement interface will be a “must have” versus a “nice to have.”

#9The window of enjoying enhanced

margins on a given insurance product will shorten as new technologies

emerge.

Key Take Away: Getting insurance products to market faster and more effectively demands

product agility and streamlined processes.

#10The pace of disintermediation will

increase and accelerate.

Key Take Away: Technologies and processes must

combine to increase customer loyalty and prevent defection.

#11New entrants will be emboldened

as barriers to entry drop.

Key Take Away: Look at non-traditional companies when benchmarking performance.

#12Niche markets will continue to

offer higher margins.

Key Take Away: Companies will design processes,

people and technology around “Speed to Market.”

#13Internet of Things (smart devices, telematics, wearables, etc.) will

open up tons of opportunities for new insurance products.

Key Take Away: Keeping the pulse on Silicon

Valley’s investment trends is smart business.

Bonus Prediction:To compete, insurance carriers will

need top talent.

Conclusion: What will your company look like

in 2024?