KPMG Management Services LP has released its latest research outlining trends that will shape the future of insurance, including how carriers’ relationships with customers will change, and the role digital technologies will play in meeting consumer’s needs.
The firm says insurers are set to capitalize on a number of new opportunities, areas open to disruption that have come to the forefront as a result of the pandemic. They say insurers will need to pivot their operating models or risk being left behind. “Because insurance is an essential part of doing business for many small businesses, brokers who can leverage technology in ways that make it easier for businesses to continue to make products and serve customers will benefit,” KPMG writes in its most recent report, The future of insurance.
Insurance adjusting, for instance, they say is just one time-consuming process that is being revolutionized, with technology allowing insurers to process claims and payments within hours or a loss event. “This is transformational for agricultural insurance and property and casualty insurance,” they write.
“Insurers are also navigating new and emerging risk classes. Cyber risks are growing steadily,” they add, saying many businesses are facing increased exposure. They also discuss businesses' concern’s about keeping their assets secure in the metaverse. “Insurers will have to address this emerging opportunity.”
The report also discusses the continued shift from protection to prevention, the growing focus on wellness and consumer’s willingness to share information, and the proliferation and adoption of usage-based automotive insurance.
“The insurance industry faces disruption from many sides, including technology providers, utilities, and automotive companies. In this expanded ecosystem, every insurer will need to offer greater transparency and increased customer control.”
