By: Eric Truntz, Senior Principal
The new year is only a little over a month away and when the calendars show January 1, one can always expect a slew of industry experts foreshadowing what the insurance industry might see in 2020. In meeting with clients, speaking with analysts and media, and networking with other InsureTech enthusiasts, I figured I’d throw my hat in the ring as well and muse about what’s to come. If nothing else, it will be entertaining to revisit this post at the end of 2020 to see which trends flipped or flopped.
First, and I feel like it goes without saying—the focus will be on all things AI. Many insurers will be exploring and hurriedly adding technology to compete, but my advice to anyone is to be wary of the so-called “hammer looking for a nail.” Without proper strategic business planning, outcome planning, implementation, and success metrics, adding technology that promises the world without first ensuring you need or can support the world can be a bust. Avoid shiny new object syndrome and plan with the business outcome in mind. When the clock strikes midnight on December 31, 2020, you’ll be glad you did.
Second, while more companies seem to be popping up, the real competition pool is getting smaller. The firms that play to win—they may use chatbots, have fast claims processing, and offer swift application approval—will lead, while firms that lag (even a little) risk extinction. Gone are the days of customer loyalty—policyholders can and will switch because the new insurer makes the process that easy. To help combat this, increase the number of opportunities in which you can genuinely connect with a customer, not just to say hello, but to truly add value to their experience.
Lastly, with the proliferation (and vast use) of all this data, governance and compliance will always be top of mind. Challenges in these areas will plague insurance companies, and while a necessary evil, they exist to truly protect everyone in the process. Specifically, I see the claims adjudication process changing to meet AI’s influence on the insurance industry, especially its new standard and expectations of responsiveness.
While I don’t have a crystal ball and 2020 is only a few weeks away (so how much can really change? Okay, a LOT.), I enjoy thinking of the scenarios, case studies, and technology that will shape so much of the industry, our business choices, and consumer habits during the next 15+ months. What do you think will happen, or how will insurers be impacted? Connect with me on LinkedIn and let’s ponder.
Want to chat trends and how they might impact your business? Contact me and let’s set up a time to talk.