Five Potential Changes in 2017 for Insurance
Published: December 2016
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Most of the insurance industry admits the potential for real change to occur in the industry, but few expect it in the short-term. Nonetheless, some insurers do see the demand for different product types, the impact of predictive analytics, and the threat of digital competition and cyber-security as areas where real change is likely in 2017, and are taking steps to prepare.
Real change may come from long evolutionary trends. The growth of predictive analytics, simplified products and underwriting, and digital distribution are nothing new. But they’re all starting to reach critical mass at the same time.
External threats like cyber-security and the potential of regulatory action are what the industry might consider “known unknowns.” Insurers generally feel that their ongoing efforts in both areas will allow them to manage any real change that may occur.
While fewer than one in five insurance leaders really expect major changes, more than half admit the possibility of it. This uncertainty requires insurers to actively monitor the horizon and be prepared for changes that may not occur in the short-term, while still devoting resources to addressing real short-term needs.