“20/20” is synonymous with perfect vision. That reminds me that we here at Sapiens see some interesting property & casualty (P&C) trends for 2020. Here are our top five:
- Artificial Intelligence & Cognitive Capabilities
As P&C providers increasingly digitalize platforms and solutions, artificial intelligence (AI) and cognitive capabilities will become more critical. This process will shift insurers from focusing on risk mitigation towards proactively predicting, and even preventing, risks across the various insurance verticals. Using AI to analyze data will offer an enhanced experience for insurance personnel, empowering them to process claims quickly and efficiently, as well as drastically improving the underwriting process. AI and cognitive capabilities will be crucial to achieving modernization goals. These technologies will also continue to be used to tackle insurance lapses and to widen the pool of potential customers.
- Continued Digital Transformation
Property & casualty carriers, like almost all other types of insurers and organizations across business verticals, are constantly scrambling to stay ahead of the digital curve. They seek to obtain a competitive edge by offering the most advanced technologies that will increase organizational efficiency and raise the levels of customer engagement and satisfaction. With technologies evolving at the speed of light, P&C providers find themselves needing to constantly transform themselves. This often includes partnering with the right insurtechs, creating an innovative ecosystem and possessing an agile and flexible core system that enables fast time to market for new products.
The right professional support for digital transformation can significantly reduce the risks and ensure success.
The use of blockchain in the insurance field is still mostly in its infancy, but insurers increasingly understand the tantalizing potential. Unlike banking and money transfer applications, which have attracted much of the early focus, P&C insurers are still pondering how to best use blockchain technology to maximize existing advantages and strength. As with other new developments, the insurance industry is largely proceeding judiciously, although some P&C insurers are already actively exploring blockchain.
Ledger Insights, an enterprise blockchain news site, reported last week that RiskStream, a Blockchain consortium, has launched an insurance innovation lab.
“We’re excited to work with some of the smartest minds in our profession and provide a central point to collectively collaborate and advance the industry,” said Christopher McDaniel, RiskStream president.
In terms of applications, RiskStream mentioned the potential to explore IoT and analytics, as well as surety and workers’ compensation.
Smart contracts powered by a blockchain technology could provide customers and insurers with the means to manage claims in a transparent, responsive and trusted manner.
- Digitalization of the Insurance Value Chain
As point #2 explained, digitalization is increasing rapidly. But some insurers are still using digitalization to solve specific business problems, rather than adopting the integrated and holistic approach that will bring much more value.
For instance, true digitalization should greatly minimize manual interactions with third parties. The key is an all-encompassing digital approach that features integrated components functioning at their highest levels and complementing each other, and working seamlessly with third party technology.
- Increased Personalization of the Insurance Experience
2020 will see an exciting and positive shift in how insurers operate, especially in relation to their clients. There is a widespread realization that carriers and providers must improve the customer experience and ensure that the policies and products they offer are relevant and tailored to the individual. To achieve this, insurers are adopting more modern technologies, especially artificial intelligence, into their business practices. As more companies embrace these tools, insurers will be able to better utilize the many data streams at their disposal to enhance their products and increase their relevancy
These are the P&C trends that we see becoming hot in 2020. What is your vision for this year?