In 2018, the insurance industry continued to support the promise of disruptive technologies including: 5G, artificial intelligence (AI) and machine learning (ML), augmented and virtual reality and next-generation cloud services such as edge computing. Are you as customer-centric as your customers want you to be? remember settings), Performance cookies to measure the website's performance and improve your experience, Advertising/Targeting cookies, which are set by third parties with whom we execute advertising campaigns and allow us to provide you with advertisements relevant to you,  Social media cookies, which allow you to share the content on this website on social media like Facebook and Twitter. Market development 2: Insurers face intense pressure to enhance their anti-fraud and data security capabilities, as consumers and regulators call for increased transparency. Robotic Process Automation (RPA): RPA will become the most widely accepted insurance technology trend globally in 2019. Market development 4: Some leading players are looking to leverage blockchain technology to mitigate risks and manage cyber liability exposure. KPMG International provides no client services and is a Swiss entity with which the independent member ˉrms of the KPMG network are afˉliated. Ask yourself: How can insurers build on first-generation agency portals with new capabilities to support the entire distribution management lifecycle? Market development 2: With a single line of business or geography up and running, most carriers are looking to extend these tools across the business to leverage their investments. �߳�ͽ ��d޺G�ԁQ�WĻ�J(x� �K�\Y`�]mџ�ۇ�^#�?�N[������8�k�'v����V�HӃ*��}��? Ask yourself: How can blockchain enable more accurate reserve calculation and reduce asset management costs? Historically, the relationship with consumers has been built around renewal and claims payment. How does trusted data help you realize transformation? 6 Top-10 Technology Trends in Health Insurance: 2019 • The industry is witnessing a slew of consolidation and collaboration efforts as insurers move to become sustainable in the increasingly … However, insurance … Customers gain increased confidence and peace of mind that their data is safe. EY is a global leader in assurance, consulting, strategy and transactions, and tax services. They want personalized offerings and tailored communications – that’s why insurers must digitize services and optimize all interactions. Telematics and other connected devices record driving patterns and can change behaviors. You may withdraw your consent to cookies at any time once you have entered the website through a link in the privacy policy, which you can find at the bottom of each page on the website. Ask yourself: Which emerging technologies have the greatest potential for cybersecurity applications? The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. Does the innovation upside from disruptive technologies outweigh the competitive threat? Market development 3: Leveraging data to improve underwriting and product development will drive revenues and profitability by speeding entry into profitable niches. Trend 01: Offering Dynamic … UBI has gained traction because it has the potential to generate substantial benefits, including: We can help insurers improve pricing and boost profitability, enable stronger risk identification and underwriting efficacy and achieve more precise customer segmentation. Market development 5: Software robots can mimic human actions and automate repetitive tasks across multiple business applications without altering existing infrastructure and systems, while improving productivity, cycle times, accuracy and compliance. Always-on technology and data-driven operations mean cybersecurity must be proactive and strategic, not reactive and defensive. 8% have performed insurance-related activities, such as car insurance using telematics and health care premium aggregation. A@�j��S��my-cw/�\�(QE~B�=�:�QS��*��L�b��9�3��X2�%�F2����9z�ъ�-��c�ļ^���G��. 7/22/2019 1 TECH TRENDS THAT WILL DEFINE THE FUTURE OF INSURANCE ... of executives from the property and casualty insurance industry are using big data in pricing* * (2015 survey by W illis Towers Watson) ... Microsoft PowerPoint - Six Technology Trends Impacting the Insurance Industry 2019 … endstream endobj 575 0 obj <>stream Market research shows that the RPA market which was worth 443 million USD … Agents and brokers want better data and tools on carrier portals to better serve their customers and compete for new business. Market development 1: Many carriers have purchased modern, “rules and tools” core systems over the past five years. … That’s true for both insurers and potential cybersecurity policyholders. Top 10 Technology Trends in Health Insurance: 2019 October, 2018 2. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. 18% have completed money transfer/payment activities, such as using non-banks to transfer money and performing online foreign exchange transactions and overseas remittances. Top-10 Technology Trends in Health Insurance: 2019 1. 75% - Customers very satisfied with current outbound communications from insurers, 44% - Customers who have had no interactions with their insurers during the prior 18 months (see details below), 38% - Customers who claim to be advocates but cancel policies or switch providers, 80% - Customers willing to use digital and remote channel options for different tasks and transactions, 40% reduction in policy administration cost, 16% of respondents believe their cybersecurity approach is fully meeting their needs, 59% have discovered “significant” incidents within their organization, 75% did not think it was “very likely” they would be able to detect a sophisticated attack, Among the top 10 cyberattacks, the number of records stolen more than doubled from 2015 to 2016 (261 million to 586 million). Market development 1: The Internet of Things (IoT), drones, social media, mobile technology and connected devices have drastically increased the data insurers can leverage across the value chain. The big challenge in … We’ve identified three key market developments, and the key questions to consider. Today, digitally enabled consumers are open to a much more 6 | Insurance trends 2019 … In-home and building sensors monitor environmental conditions and can revolutionize pricing and claims. Even if Bitcoin, Ethereum and Ripple don’t become the standard currencies of … From concept to implementation, we work with you to develop strategies that optimize performance, drive efficiency and enhance quality. Ask yourself: Which new start-ups are the best candidates for partnerships and/or acquisition? Ask yourself: How can insurers partner with companies to strengthen cybersecurity practices, in addition to protecting against increased risk? 12Top-1 Technology Trends in roperty asualty Insurance 19 –In El Salvador, the Microinsurance Catastrophe Risk Organization (MiCRO) launched Produce Seguro, a parametric insurance product … Agencies are already building custom digital solutionsthat tie a number of different channels together to maximize their reach and effectiveness with customers. ... Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to … Five trends based on our latest global survey of business and IT executives, including 577 insurance executives. All Rights Reserved. Successful business … Unfortunately, in the rush to capitalize on these opportunities, many organizations overlook or underestimate risks and fail to take necessary precautions. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. During the prior 18 months, customer reported varying levels of interaction with their insurers. The insurance industry will continue to face dramatic change in 2019 due to technological, economic and political shifts. How can response plans be enhanced? Digitally active customers are beginning to use FinTech-enabled solutions: We can help insurers achieve more efficient claims management, stronger fraud detection and prevention capabilities, reduced asset management costs, and enablement of big data and IoT initiatives. Aug 6, 2019 In the era of digital technology, technological advancement has become a strategic priority for every business to meet the growing consumer expectations and the pace of digital transformation. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. Ask yourself: How can scenario-modeling capabilities be enhanced with new data and analytical tools? Please refer to your advisors for specific advice. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Market development 1: Customers want to research and buy products online and expect to communicate largely through mobile channels. Robotic Process Automation (RPA) is yet another insurance technology trend that will make waves in 2019 and beyond. Customers gain enhanced experiences, tailored information and faster claims resolution. EY | Assurance | Consulting | Strategy and Transactions | Tax. Insurers are making significant investments in data analytics and modeling techniques to improve nearly every part of the business. Some of these developments may be seen in certain parts of the global insurance … Ask yourself: What’s the right level of standardization and out-of-box product capability to reduce total cost of ownership? Ask yourself: How do you demonstrate the business impact of core transformation efforts to scale up implementation? Ask yourself: What are the best ways to collect and manage new data to generate insights and gain competitive advantage? Ask yourself: What's the best way to embrace new technologies to react quickly without extensive recoding and reconfiguring existing systems? Our global insurance team has identified five key issues and trends that should be on the radar for insurance company leaders. “The insurance industry is undergoing a complete transformation because of constant innovation spurred by big data, artificial intelligence, blockchain, business intelligence and cloud. Trends for 2019. The blockchain is one of the most powerful technology trends to revolutionize the insurance industry in the next couple of years. Getting insurance quotes can be as easy as clicking a button, managing coverage can typically be accomplished via a mobile app, and paper insurance … Top-10 Technology Trends in Life Insurance: 2019 November, 2018 2. For insurance CEO’s, the insurtech agenda is a top priority and in many cases, at the … Ask yourself: Which are the best first steps to close the communication gap and strengthen relationships with unique customer segments? Ask yourself: How can proactive threat monitoring be used to strengthen cybersecurity capabilities? The new models that insurance organizations must build to overcome tech-clash share one thing: they are based on collaboration. 17% have used savings/investment tools, such as online stockbroking/spreadbetting, online budgeting/planning, online investments, equity and rewards crowdfunding, and peer-to-peer (P2P) lending. Dramatic changes are reshaping the insurance industry, and forward-looking insurers aren’t just watching it happen. Customers gain improved pricing, increased responsiveness and tailored experiences created through IoT and sensor inputs. We can help insurers gain increased customer satisfaction and loyalty, lower costs and greater operational efficiency. InsurTech and blockchain mean significant new threats and more intense competition but also promising new opportunities for collaboration between new and old market players. Some of the insurers have already … Omnichannel distribution is crucial to improving both the quality and frequency of customer interactions. Cyber risk Just as in … V���ɵ����M؛^ϟ+�M���`Q4��S�V#��p���V-�=j��!��'%�a��U��� 7c�!x���hJ�B�N���S��$��[ ����.��.��!�?���! According to our Technology Vision 2019 survey of 577 business and IT executives in the insurance industry, 96% report the pace of innovation in their organizations has accelerated over the … Market development 3: Insurers are exploring single global ledgers to achieve capital efficiencies and improve visibility into reinsurance contracts and risk exposures. © 2020 EYGM Limited. Through honest conversations with over 200 C-suite insurance executives throughout EMEA, we have worked with Financial Times Remark to identify and analyse four key insurance trends that will shape the future of the industry … Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. 5. Our information security survey reveals several key findings around cybersecurity: We can help insurers create stronger protection for key data, reduce brand and reputational risk, and achieve more efficient regulatory compliance. What will 2019 … Market development 3: Insurers embrace outsourcing, robotic process automation and software as a service (SaaS) solutions to reduce costs. Market development 1: The number of records stolen in the 10 largest cyber attacks in 2016 rose 124% from 2015. Blockchain – Distributed Ledger Technology, is one of the most powerful technology trends that will revolutionize the insurance industry in the year 2019. In a 2018 survey, 62% of … Consumers have more complex needs and are more knowledgeable about their choices than ever before. While industry insiders all include it as a trend to watch in 2019, customers are unsure they’re ready for the role artificial intelligence could play in life insurance. He is a frequent presenter and author on insurance trends … pi��� *���/t�FO�R�w�ۥb��[��8m����@��&�S�G��p�+y57�����Z�]_����u��QE��dM&�|��M�!�' ��^B"L��5B%Ww�b|����G����L�.���s�"@��K�gă������)��6��k�������R�L�#��O,�̩��1�.�~0B]�gxI�$a+���0�[�J��������v��MLU?��L7x��Q?���p5j��hNc�|��9�n>�K�����ȟ2���Z�f?&pj�3��)ə�,�t;�k7E.F���xٔA�9s�����4�J�Ђ����y��',�D1d�F\�p祲�̙Ԉ{���WN|Gc� [����(]� �)�����=��=�-�ܶX|@�a�� pd:���q"���͖�E�8ɹ� -�\��=Z#� �F&���������G|@�Nj4��� ���y�:�sU�J�8���6���m�l~�کV���ۂ�Q� B�WW-@⣾4Sa�Mt�t�7�)au�_@�����YNןs��h-�kТ\��*g\c�|����mw������4Y_�]��oP��nh۠�~�NV�WS;�����n�\� n'��B� In 2019 the use of mobile apps, social media, and the web will increase and reach an all-time high. IoT enablement: Strategize for the long term; study how sensor hardware can deliver near real-time performance and condition information to enable automated premium adjustments and smart contracting. Core insurance systems are being modernized at scale to optimize processes, increase collaboration and reduce costs. The technology trends in life insurance for 2019 are expected to be shaped by the innovative means life insurers are exploring to meet the industry’s challenges and opportunities. Review our cookie policy for more information. Multidisciplinary professional services organization. Market development 2: Consumers want more frequent, meaningful and personalized communications. Recent trends in the insurance industry show that it is already being used, and the number of applications is only growing. This means that new ways for insurance companies to engage digitally are popping up in 2019. Market development 3: Cyber insurance growth is constrained by lack of reinsurance options due to challenges in risk measuring, modeling and pricing. We can help insurers increase profitability, improve pricing and increase underwriting efficacy. For more information about our organization, please visit ey.com. Market development 1: FinTechs and InsurTechs have made significant inroads by designing powerful but focused applications that solve specific problems and deliver high-quality and intuitive digital experiences. Ask yourself: Which functions and processes should be enhanced first? Market development 2: Cyber insurance premiums are increasing, but at different paces, with large retail and health care players seeing the highest increases. Insurance Tech Vision 2020 trends. More agencies will be investing in their own mobile and web applications to serve their existing and future clients. Internal proofs-of-concept: Verify the technology by starting with internal reconciliation of customer data sets and internal claims processing with smart contracts. From modernization to mobile to robots – where are you on the journey? Advanced insurance technology is already an integral part of the Property & Casualty industry, for both carriers and insureds. As US Insurance leader, he works with Deloitte’s teams to coordinate services to strategic clients, marshal resources globally, share thought leadership and industry insights, and connect client executives with their peers. Industry Trends to Exploit for 2019 Survey Finds Insurance Agency Employees Now Prefer Mix of At-Home, In-Office Work Update - Aon's $30B Bid for Willis Towers Watson Faces EU Antitrust … 2019 KPMG International Cooperative KPMG International. We surveyed Chief Risk Officers from some of the biggest insurance companies in the world to find out what have been the insurance industry’s top challenges in 2019. When it comes to implementing new technology, the insurance industry is rarely considered an early adopter. Market development 2: Although insurers recognize the power of analytics to grow, optimize and protect value, many continue to be overwhelmed by the far-reaching changes required to transition to value-driven decision-making. Market development 4: Insurers are investing to extend their core applications and systems platforms via customer-facing and agent-facing portals and apps. How can partnerships foster more and faster innovation, enhanced digital experiences and greater risk-taking? Sensor technology is a major contributor to big data and will profoundly change the industry. 6% have performed FinTech-enabled borrowing, including the use of P2P sites. How can digital government connect citizens without leaving the disconnected behind? In-home and building sensors monitor environmental conditions and can revolutionize pricing and claims. Customer-facing processes: Seek partnerships in areas where there is leverage to drive adoption and develop the requisite legal, regulatory and tax frameworks. %PDF-1.6 %���� Customers gain stronger data security and privacy, increased trust and transparency, and faster resolution. They are taking action and making investments that will help them become more customer-centric, improve their pricing and create operational efficiencies. New trends and innovations that first gained a foothold in other sectors are continually being adapted and updated to meet the needs and desires of the multi-billion-dollar global pet industry. Telematics and other connected devices record driving patterns and can change behaviors. Ask yourself: How can smart contracts based on blockchain be deployed to improve both data security and access among suppliers, partners, regulators and other entities? Sensor technology is a major contributor to big data and will profoundly change the industry. In addition to cookies that are strictly necessary to operate this website, we use the following types of cookies to improve your experience and our services: Functional cookies to enhance your experience (e.g. The flip side of the digital world offers great potential for exploitation by criminals and others wanting to cause trouble. The digital world abounds with opportunities for innovation and value creation. Will COVID-19 turbo-charge M&A and transformation? Demanding customers, new competitors and a changing set of challenges are transforming the insurance industry. Our FinTech Adoption Index shows that the next wave of innovation in financial services is here to stay and consumers are ready to adopt new tools. 574 0 obj <>stream EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ask yourself: Which functions or processes are best suited to initial deployments of robotic process automation? But with so much changing and so much at stake, where are the right areas to focus? With strategic investment in these five areas, insurers can become more customer-centric, achieve growth and lower costs. By staying top of mind in the apps and digital c… Every year, the Technology Vision team partners with Accenture Research to identify the emerging technology trends … Customers get enhanced experience, greater channel access and faster resolution. Ask yourself: How do digital and mobile channels help insurers achieve growth and profitability targets by finding new customers and retaining existing ones? Market development 3. Ask yourself: What cultural and organizational changes are necessary to become data-driven and analytics-led? We collaborate with insurers on technology transformation programs and the deployment of digital tools. Usage-based insurance … and advances in digital technology, are innovating with customer needs and experience at the centre. 5 Emerging Trends for Insurance in 2020 ... 2019 Insurance Thought Leadership – by Steve Lipinski, Managing Principal, Insurance Consulting, EPAM. “Robots” are software tools that simplify business processes, and the technology behind this development is called robotic process automation (RPA). In fact, RPA is one of the most widely accepted technology trends … AI will be a supportive technology, working along with blockchain and … Ask yourself: Which back-office systems can be used to enhance front-line interactions?