Younger renters evidently do not have an insurance habit yet, and this presents a challenge for insurers; but this is also an opportunity. Generation Rent offers a large untapped market in the UK that is going to grow considerably over the next few years. What can insurers do about this?
These are turbulent times for the housing market, the younger generation, and the organizations in business to insure them. A recent survey of young British adults from Generation Rent reveals that 60% of young renters aged 20-30 have no insurance, despite a majority saying they had suffered a loss while uninsured. This blog, written by our own Keith Stonell, analyzes what’s behind these disappointing results. Some of the characteristics that emerge in the survey are evident in many parts of the world, including the U.S. market. No matter the geographic location, there are four key steps Stonell says insurers may want to employ to connect with young renters, to change their non-insurance habit, and convert them to committed customers.
Artificial intelligence—technologies capable of performing tasks normally requiring human intelligence—is becoming an important component of analytics efforts. Yet AI is only one part of a larger, more compelling set of developments in the realm of cognitive computing. The bigger story is machine intelligence (MI), an umbrella term for a collection of advances representing a new cognitive era.
Predictive analytics are rapidly being adopted by the insurance industry. And, the next iteration of this technology is already accessible to property & casualty insurers for use in a variety of ways. Analyzing natural language patterns and naturally occurring trends in a book of business, insurers are able to improve risk assessment, pricing and underwriting. In the claims area, machine learning can assist with fraud mitigation and auto loss prevention. As part of Deloitte's Tech Trends 2017 report, this specific section shares a spectrum of opportunities CIOs can consider with machine learning.
"Despite soft premium rates, low interest rates, and subdued economic growth in many developed markets, insurance CEOs are optimistic about their own companies’ prospects. Over a third (35%) are very confident that they can achieve revenue growth over the next year and more than 80% are at least somewhat confident. However, insurance CEOs are acutely aware of the disruption and change facing their industry, the transformational impact of which is now evident in areas ranging from robo-advice to pay-as-you-go and sensor-based coverage."
PwC surveyed 95 insurance CEOs in 39 countries for its 20th CEO Survey and found that concerns over regulation, the pace of technological change, shifting customer behavior, and competition from new market entrants have continued to rise from their already high levels. We at Guidewire have seen similar concerns. The battleground for competition is shifting toward a more technology enabled kind of domain, elements such as digital distribution, omnichannel service, application of predictive analytics to key insurance decisions, all of these things have become highly consequential to the way insurers will compete and are preparing to compete in this next generation.