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Mintel Comperemedia has today (December 11, 2018) announced four trends set to reshape the US and Canadian insurance industries in 2019.

Partners in Prevention

Growth across the Internet of Things (IoT), wearables, and connected devices will collectively open doors for insurance carriers as they look to become proactive, risk-mitigating participants in policyholders’ lives.

Consumers are no longer content with purchasing insurance policies simply to collect dust. Instead, they are looking to their insurance providers to partner with them and mitigate risk collaboratively. In response, insurance carriers are expanding value propositions, messaging, and products in order to become active participants in policyholders’ lives. In the year ahead, wellness programs, telematics, smart home technology, and emerging connected devices will open doors to the advancements driving innovation in a prevention-driven insurance industry.

“In an industry long resistant to digital innovation, insurance carriers are not only embracing change, but doing so in a way that is fundamentally altering the paradigm by which they operate. Expect to see a greater emphasis on value propositions that tout preventative qualities from both incumbent insurance carriers and insurance startups. Ultimately, the imminent growth across the Internet of Things, wearables, and connected devices will drive more opportunities for insurers to provide risk mitigating services to their policyholders,” said Tara Clemens, Senior Industry Analyst, Insurance, Mintel Comperemedia.

Indemnity Where I Am

The API (Application Programming Interface) mindset and integrated omnichannel marketing strategies will become drivers to better distribution as products become fast, seamless, and embedded experiences.

Moving forward, insurance carriers must focus on meeting customers where they already are through API technology, which allows insurance firms to add value and gain new clients through a more seamless customer experience than traditional distribution options. Expect to see carriers optimize the customer experience by moving to an omnichannel strategy that will help customers move effortlessly between devices without disrupting their experience.

“Today, we’re seeing a shift from a multichannel strategy to an omnichannel strategy that provides consumers with a more intuitive experience. APIs are an obvious and highly utilized choice for many insurance startups as they target prospective customers through enhanced distribution models. In 2019, expect to see insurance carriers focus on improving their own distribution channels and user experiences in a collective effort to reduce friction and meet customers where they are,” continued Clemens.

Personalized Protection

Insurance carriers will leverage new technologies that enable them to personalize messages, pricing, and the customer experience as a pivotal differentiator in the digital age.

Consumers are looking for insurance policies that are tailored specifically to their needs. As such, telematics has become a strategic priority among management teams across the industry. Beyond the product itself, customers are also seeking a personalized customer experience. Looking ahead, as technology advances, insurance carriers will leverage options that allow for more accurate risk pricing.

“As the amount of consumer data rapidly accumulates, risk assessments will become more sophisticated, allowing for hyper-personalized policies that are unique to individuals’ needs. Brands that truly understand their customers will use that information to increase engagement across the insurance value chain moving forward. Expect to see insurance carriers leverage new technologies that enable them to personalize messages, target audiences, pricing, and the customer experience,” added Clemens.

Cyber Surge

Competition in the cyber insurance market will evolve as companies respond to breaches and buyers seek dedicated limits and expanded coverage.

High profile data breaches and widespread regulatory sanctions are propelling cyber security to the forefront of insurance carriers’ conversations, driving growth in the cyber insurance market, particularly among small and mid-size businesses. As companies and individuals become increasingly mindful of the risks associated with online data, expect to see insurers reassess whether cyber insurance should be a stand-alone product or included with other coverages, such as property and general liability.

“With regulation from the General Data Protection Regulation (GDPR), an increasing number of data breaches, and a consumer population that is more aware of data security, the market for cyber security will experience huge growth in coming years. We expect small and mid-size business to drive much of the growth as they look to protect themselves from the threat of a devastating data breach,” concluded Clemens.

Interviews with Tara Clemens, Senior Industry Analyst, Insurance, are available on request from the press office.