WORLDINSURANCEREPORT2019WorldInsuranceReport2019TheWorldInsuranceReport(WIR)hasbeentrackingtechnology’simpactontheinsurancesectorformorethanadecade.Wehaveexploreditstransformativeeffectoninsurer-customerrelationships,insurancemarketdynamics,andinsurancebusinessmodels.Inthis,ourtwelfthyear,thereporttakesadifferentlenstolookatthemostcompellingoverarchingmacrotrendsthataredrivingchangeintheinsurancerisklandscape.Today’srisksrangefromtheenvironmentandclimatechangetodisruptionfromadvancedtechnologies–withdifferentprioritiesforeachinsurancesegment.Personalinsurancepolicyholderssaytheyaremostconcernedaboutexposuretonewmedicalandhealththreats.Commercialcustomersfeelmostvulnerabletorisksgeneratedbytoday’schangingbusinessenvironment.Cyberrisksposeacommonthreattoallgroups.Asthesebig-picturerisksmount,however,industryresponsehasbeenlackluster.Thefactthatonlyasmallpercentageofinsuredsbelievetheircurrentpoliciescoveremergingriskscomprehensivelyiscauseforconcern.Insurersneedtoprioritizecustomerperspectivesandusethoseinsightstocreateandadaptproductofferingsthatmeettoday’sdynamicneedsandclosethecoveragegap.Ourreportsuggeststhatshiftingcustomerpreferencesmayunlockopportunitiesforinsurerstotackleemergingrisksmoreefficiently.Today,moreandmorecustomersarewillingtosharetheirdataandpayadditionalfeestogainpersonalizedrisk-controlandpreventionservices.Theyarealsoamenabletonewinsurancemodels–suchason-demandandparametricinsurance–thatenableinsurerstocoveremergingrisksmoresustainablyandprofitably.Whenwestudiedtheseinsureropportunities,wefoundthatthepaceofproductdevelopmentandthepipelineofnewofferingshasn’tcaughtupwithcurrent-dayrealities.AswesawinWIR2018,agilitywillbecriticalifinsurerswanttoseizetheseopportunities.Theneedofthehourisdisruptiveinnovationintheformofneworrefactoredproductstoaddressthenewrisklandscape.WIR2019foundthatwhileinsurersarepreparedtomonitorriskandthecustomerlandscape,manyhaveyettodevelopadvancedrisk-quantificationandrisk-controlcapabilities.Amajorroadblockisthe...
