The Future of Insurance

Opportunities for Innovation in Emerging Markets, Technologies, Business Models, and Operations

This study looks at the changing landscape of the insurance industry in terms of emerging insurable markets, new business models, evolution in operations, and the value chain, as well as disruptors and opportunities to various lines of insurance. Readers of the study will come away with insight into new markets, technologies, and trends that they may not have considered previously, as well as a thorough understanding of ways in which they can evolve their business models, operations, and value chain to keep pace with innovators and emerging technology. Innovation examples are provided throughout the study to serve as guideposts for insurers.

This research looks at 24 emerging insurable markets that range from urbanization topics, such as mega cities and smart cities, to social trends that include Gen Z, Millennials, elderly, and the income divide. We also address numerous technology topics such as AI, AR/VR, the blockchain, wearables, implants, self-healing materials, and automation, as well as mobility topics like autonomous vehicles and shared transportation. For each market, an overview of the trend, as well as challenges that the trend presents and opportunities for insurers, is provided. Examples of industry best practices, notable activity, or case studies are provided for each market to illustrate movement in the industry in addressing the market.

Evolving business models assessed include prevention-as-a-service, usage-based insurance, ecosystem platforms, on-demand insurance, bundled offerings, value-added services, peer-to-peer insurance, and microinsurance. An explanation of the business model, its drivers, predictions on its future evolution, as well as current and future applications are provided. Examples of industry best practices, notable activity, or case studies are provided for each emerging business model.

Our review of evolving operations includes emerging data sources, AI, automation, core systems/IT infrastructure shifts, and personnel/culture shifts. Examples of industry best practices, notable activity, or case studies for each evolution in insurance operations are provided. The evolving value chain looks at emerging customer experiences and required insurance company capabilities across distribution and marketing, underwriting, policy servicing, and claims servicing.

When evaluating disruptors, the researchers look at insurtech start-ups and non-traditional insurance participants such as Amazon. Finally, the publisher identifies opportunities across many lines of personal and business insurance. We have noted the expected impact of each insurable market trend on the lines of insurance business included. This study includes 37 examples of best practices in emerging areas of the insurance industry.