Everything is Changing (Because It Always Does)

[MVI]

Property and casualty insurance is changing. Here are some trends I believe will happen in the future:

1. More technology will be used. This means things like AI and telematics. These tools help insurers understand risk better and improve customer service. Who hasn't experienced a push from their regional sales guys to sell intelligence-based driving monitoring stuff?
   
   
2. Customer experience will be important (at least that's the narrative). Insurers want to give good service to their customers. They will do this by offering personalized products, making the claims process easier, and using technology to make it easier for customers to connect with the company. They will also drop the ball in many ways because of cutting costs and outsourcing internal CSRs to inexperienced people.
   
   
3. Data and analytics will be used more. Insurers will collect and analyze more data to understand risk, find patterns, and create better products. Big data is the name of the game. How this plays out, I'm not sure.
   
   
4. Sustainability and social responsibility will be a focus. Customers care about the environment and social issues. Insurers will offer green products and support sustainable initiatives to meet this demand. What new green things have you seen lately? Email = green. What else?
   
   
5. Natural disasters will continue to be a concern. There will be more hurricanes, earthquakes, and wildfires. Insurers must adapt to these changes and find ways to manage risk. Just look at Florida right now...
   

What do you think?

I have an established book. I'm considering the future. What's coming next?

 

[adjusterjack]

Cynical consumer here.

Whatever the insurance industry does will be to sustain and enhance profits.

Any benefit to the consumer will be fortuitous.

 

[Newby]

Any company that starts promoting their politics or social issues to try to market loses customers. It’s a huge turn off. Give me paper copies of my policies and make them look good. I don’t want your spiel about saving the tiki bird.

 

[scagnt83]

Any company that starts promoting their politics or social issues to try to market loses customers. It’s a huge turn off. Give me paper copies of my policies and make them look good. I don’t want your spiel about saving the tiki bird.

I bet the tiki bird wants to hear it

 

[MVI]

Any benefit to the consumer will be fortuitous.

Fortuitous is a good word.

 

[Markthebroker]

1-4 are true for all industries. 5 is true for many.

 

[MVI]

The big data one has me most interested.

What will insurance companies do once they have predictive AI models that are incredibly accurate? The implications are crazy.

 

[Markthebroker]

The big data one has me most interested.

What will insurance companies do once they have predictive AI models that are incredibly accurate? The implications are crazy.

If. If it happens. That's a big if.

We've been told since the 50's that we're within years of running out of oil. We keep finding more.

In the 70's we were warned of global cooling. Never happened.

In the 90's we were warned that the hole in the ozone would end us all. Never happened.

I run an old school word of mouth business with no social media or advertising. People keep telling me I'm doomed. I just keep getting busier each year.

During covid we kept getting "predictive models". I don't remember a single one being right. Just fear mongering.

Today we are told boys can be girls, girls can be boys, New York recognizes 31 genders, and AI will take over the world. Uh huh. You may be right, but I'm not holding my breath.

 

[MVI]

If. If it happens. That's a big if.

We've been told since the 50's that we're within years of running out of oil. We keep finding more.

In the 70's we were warned of global cooling. Never happened.

In the 90's we were warned that the hole in the ozone would end us all. Never happened.

I run an old school word of mouth business with no social media or advertising. People keep telling me I'm doomed. I just keep getting busier each year.

During covid we kept getting "predictive models". I don't remember a single one being right. Just fear mongering.

Today we are told boys can be girls, girls can be boys, New York recognizes 31 genders, and AI will take over the world. Uh huh. You may be right, but I'm not holding my breath.

Yeah, you'll probably be retired once it becomes a thing. But still, it's happening.

 

[whatyouwantfinally]

The big data one has me most interested.

What will insurance companies do once they have predictive AI models that are incredibly accurate? The implications are crazy.

Here's how I see this one:

It will (of course) be pushed as a way to "reward" people who do "good" things like brake slowly, accelerate slowly, drive less, etc.

What it really is/will be is a way to push people to behave in ways that make the carriers more profitable.

Essentially, it's a social credit system personalized for the carriers to increase profits. You could argue insurance rating has always been that, but AI/data will make it clearly distinct from the "before" time.