FROM INSURTECH TO AI, FUTURE TRENDS IN INSURANCE INDICATE NEW TECHNOLOGY TOOLS ARE TAKING OVER

The way keynote speakers tell it, future trends in insurance remind that the global industry is poised for profound modernization as emerging technologies and real-time data analytics transform legacy models into ultra-personalized, proactive protection by 2030. By reinventing customer experiences and harnessing exponential tech advances, future trends in insurance reveal that insurers can strategically expand market share while optimizing actuarial risks.

Parametric and Behavior-Based Insurance – Sensors and internet-of-things connectivity feed mountains of data for designing targeted parametric insurance that pays claim amounts based on specific trigger events measured, like wind speeds or heart rates exceeding set thresholds. Behavior-based premiums will also reward healthy, responsible living monitored through digital trackers on vehicles, fitness wearables and smart homes.

Comprehensive Genetic Profiles – Low-cost genetic testing kits enabling health and ancestry insights experienced soaring consumer adoption in recent years. As this mega-trend advances, insurers will leverage comprehensive genetic profiles to accurately predict disease predispositions over lifetimes when underwriting life insurance plans. Ethically balancing privacy risks, genetic data promises to advance personalization dramatically.

AI for Operational Efficiency – Artificial intelligence automation around customer acquisition, claims processing, actuarial modeling and fraud prevention will slash insurers’ operating costs while accelerating response times. They stand to reap over $400 billion in cost savings and value creation opportunities annually according to McKinsey. Early AI adopters have achieved up to 30 percent expense reduction targets through intelligent process automation.

Strategic Tech Partnerships – Many insurers are forging innovation partnerships spanning insurtech startups, big tech giants, telecom providers and healthcare networks to co-develop insurance bundled into the technologies and services people already use daily. That embeds protection seamlessly while advancing primary purchases like medical care, vehicles, homes and mobile devices.

By strategically leveraging real-time data flows, predictive analytics, digital platforms and cutting-edge genetics, insurers can reinvent outdated models. Exciting possibility awaits in preventative, behavioral and hyper-personalized insurance that meets individuals’ life-long risk needs in a dynamic world of health breakthroughs and climate uncertainty.