Top Insurance Industry Issues in 2019
Industry transformation: from threat to opportunity
Comfort levels rising with new insurance technologies and strategies
While generational change is still buffeting the insurance industry, many insurers are becoming more comfortable with new technologies and changing from product-focused to customer-centric organizations. They are increasingly open to forming partnerships with InsurTechs and using technology and new ways of thinking to streamline operations, better serve customers and augment a changing workforce. In addition, prescient companies are using changes to industry standards (most notably LDTI in the US and IFRS 17 elsewhere) as a catalyst to implement many of these strategic and operational changes, as well as determine viable business strategies for the future.
Insurance issues we are exploring
Individual report sections include:
Digitizing small commercial
Because small commercial insurance is a large and profitable market for those who understand it, it’s now attracting a great great deal of attention—and is under pressure to modernize. As a result, carriers are finally making significant investments in the digital space.
Improving the customer experience with data analytics
Insurers' increasing access to customer data, analytical tools, and marketing technology is enabling outreach to customers with a clear line of sight into what resonates with them. Carriers are increasingly able to quantify the pain points that cause a customer to leave – a true “moment of truth” – and use this data to improve the customer experience.
Driving change with InsurTech
Reflecting a growing maturity linking technology and strategy, new and existing players are increasingly focusing on distribution channels and how carriers interact with policyholders and employees in order to create a beautiful, brand differentiating experience.
Getting value from the digital journey
Whether you’re embarking on a digital transformation or just making targeted improvements, there are a few important things to keep in mind to get value from the digital journey.
Insights from experience design
As carriers try new ways of doing business, one of the biggest developments at the corporate level is experience design owning a seat at the table, because of its vital role in the customer experience and brand architecture.
Model risk management 2.0
MRM 2.0 is evolving as a result of revisiting the definition of “model,” a shift to validating new models, rationalizing the three lines of defense and seeking cost efficiencies.
LDTI and IFRS 17 implementation synergies
Because both FASB LDTI and the IASB IFRS 17 approaches address similar considerations, companies that need to dual-adopt are finding opportunities for synergies as they refine their approach to implementation. They’ll be able to align policy decisions while simultaneously adopting both standards without needing to worry about two full implementation plans.
Impacts of the Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act’s provisions have had impacts on insurers' operations and business decisions that go far beyond tax. We highlight the Act's most salient effects on insurers, as well as provide perspective on extensive IRS and Treasury Department guidance under the Act.
