The industry must develop new services and strategies to satisfy new customer demands
We live in a world characterised by an exponential rate of technological innovation. Disruption is ubiquitous. The telematics revolution that began at the turn of the century is in full swing. The insurance world is undergoing nothing less than a paradigm shift as it integrates new technology and prepares for a future of smart cities, smart vehicles and, possibly, driverless, autonomous cars.
And it’s not just technology that’s driving this revolution, but socio-economic and demographic trends, too. As the “Future of Insurance” Report published by TrustMarque in July 2015 indicates, the insurance market has ceased to be about products and services for local clients and businesses. On the other hand, however, focusing only on emerging markets is too old school. In fact, from 2010 to 2013, for example, the business volume of the London insurance market in emerging countries shrank by over 20 percent (“London Matters,” London Market Group, 2014).
And then there’s the new generation of millennials that commands far more information than any generation before it. Millennials are experts at finding the lowest possible premiums and are far less brand-loyal than previous generations. And they are teaching the older generations how to use these tools to their advantage, too. On-line, social and mobile tools, as the report indicates, are “continuing to fuel changes in customer expectations as they demand greater simplicity, transparency and speed in their interactions with insurers.”
Indeed, as Mauro Cantoni, Octo Telematics Group Insurance Vice President recently pointed out at the European Motor Insurance Summit 2016 (Rome, Feb. 11-12, 2016) the market must address this paradigm shift that is rapidly transforming the insurance industry. Insurers must become more agile and responsive and take advantage of the on-going technological disruption to provide new services and products that will satisfy the demands of businesses and customers around the world.
For further information:
- Vehicle Insurance in the Era of Autonomous Vehicles
- Will 2016 be a Pivotal Year for the Auto Industry?
- Octo Telematics – What We Do