8. The proliferation of insurtech distribution
Rory Yates further predicted that underequipped insurers would either lose market share or adopt expensive point solutions to access in 2023. Then they would resume managing new channels as the insurtech sector and continue its maturation cycle. As a result, the industry will grow significantly as fewer technological competitors withdraw from the race or adopt new commercial strategies.
The proliferation of new technologies has been increasing gradually, including AI, cloud computing, and analytics—and new data streams from the IoT, third-party databases, social media, and other sources. So, the insurers now have a range of strategic options for the products they offer, their distribution networks, and even their overall operating models. Here, the ability to invest at multiple speeds, strengthening core distribution while developing new models and approaches, is becoming a critical imperative for insurance management teams.
9. Automation of insurance processes shall continue
Automation technologies (RPA, ML, low/no code), analytics technologies (AI, predictive analytics), and connected insurance (IoT, usage-based) will lead to increasingly targeted insurance products and better services. The automation will further increase customer loyalty as they develop throughout 2023 and reach a peak in 2024.
Currently, insurance carriers are positioning themselves to respond to the changing business landscape as AI becomes more integrated into the industry. For example, insurance carriers are leveraging the technology shift driven by insurtechs to build a business model that uses AI at its core.