How do insurance companies build strategically resilient business models in an unpredictable future? To start, the future isn’t entirely unpredictable. The impacts from many of the most talked about disruptors, including telematics, climate change, automation, AI-driven service models and many more, are proliferating through the insurance industry. Now the questions are: How rapidly will we respond if the trends continue to accelerate, decelerate or change entirely? What happens to the industry? What should my company do? How can we be prepared? That’s the heart of our new whitepaper on the North American P&C industry.
In the first blog of this series, I outlined the value of developing resilient business strategies using inputs from Accenture’s proprietary future scenario modelling toolkit. The second blog used sustainability to show a high-level application of strategic resilient planning. This third blog offers a deeper whitepaper to analyze how the North American P&C industry could be affected by some of these key industry developments.
My goal is to show how the convergence of these trends will create opportunities and risks that can be assessed and quantified in terms of their potential. These insights should help frame the key considerations that insurance companies should be exploring.
To do this, we picked four major themes impacting the North American P&C industry right now:
- The changing face of mobility (ridesharing, interconnected cars, electric vehicles)
- Safe and resilient property (interconnected smart homes, climate resilience)
- Small commercial “digital attackers” (small business solutions, technology-enabled direct distribution)
- Accelerating cyber demand (growing demand, increasing government regulation)
We looked at the potential trends in each theme over the next three years, to 2025. From there, we analyzed different scenarios based on the acceleration of those trends to determine value at stake (defined as shifting or new premium dollars).
The below graph is a summary of each theme we explore in the report. Together, our analysis shows over $120 billion in value at stake across these themes by 2025. So, how do you capture that value? To find out and discover more insights, register to read our report, Strategic resilience: 4 opportunities you can’t ignore in P&C insurance.
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