How do insurers build strategically resilient business models in an unpredictable future? First, the future is not entirely unpredictable. The impact of many of the most talked about disruptors, including telematics, climate change, automation, and AI-driven service models, is expanding across the insurance industry. The question now is: how quickly can you react if the trend continues to accelerate, decelerate, or change completely? What will happen to the industry? What should my company do? How can I prepare?that is our heart New White Paper on the North American Property and Casualty Insurance Industry.
In the first blog of this series, we outlined the value of developing a resilient business strategy using information from Accenture’s proprietary future scenario modeling toolkit. In the second blog, we used sustainability to illustrate advanced applications of strategic resilient planning. In this third blog of his, he provides a more detailed white paper that analyzes how the North American property and casualty insurance industry will be affected by these major industry developments.
My goal is to show how the convergence of these trends creates opportunities and risks that can be assessed and quantified in terms of their potential. These insights can help frame important considerations for insurers.
To do this, we have selected four major themes currently impacting the North American property and casualty insurance industry.
- The changing face of mobility (ride sharing, interconnected vehicles, electric vehicles)
- Safe and resilient properties (interconnected smart homes, climate resilient)
- Small commercial “digital attackers” (small business solutions, technology-enabled direct distribution)
- Accelerating cyber demand (increasing demand, tightening government regulations)
We considered potential trends for each theme over the next three years to 2025. From there, we analyzed different scenarios based on the acceleration of those trends and determined the value at issue (defined as transition or new premium dollars).
The graphs below provide an overview of each theme investigated in the report. Collectively, our analysis shows that by 2025, these themes will be worth more than $120 billion. So how do you understand its value? Find and discover more insights. Register to read the report “Strategic Resilience: Four Opportunities in P&C Insurance You Can’t Ignore”.
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