Insurance Top 10 Trends 2016

Insurance Trends for 2016

2 Copyright © Capgemini 2013. All Rights Reserved

Presentation Title | Date | Financial Services

Insurers are increasingly leveraging the

Internet of Things (IoT)

$ 1.7 Trillion Global IoT market in 2020

Telematics

Wearables

Connected

Homes

Source: Capgemini Financial Services Analysis, 2015; “Internet of Things Market to Reach $1.7 Trillion by 2020: IDC”, The Wall Street Journal, June 2, 2015



Auto-insurers are shifting toward Usage-Based

Insurance

PAYD Pay-as-you-drive

PHYD Pay-how-you-drive

MHYD Manage-how-you-drive

36%

Percentage of Auto

insurance carriers who

will be using

telematics-based UBI

by 2020

Source: Capgemini Financial Services Analysis, 2015; "Usage-Based Insurance and Telematics", National Association of Insurance Commissioners, October 8, 2015



Insurers are using Big Data to improve claim

processing capabilities

Adoption of Big Data

is concentrated in

three regions of North

America, Europe and

Asia

Faster identification of events

Automated claim assessment

Easier calculation of loss

reserves

Fraud minimization

Source: Capgemini Financial Services Analysis, 2015;



Non-traditional firms are entering into

insurance industry

Since the majority of the

non-traditional firms have

a global presence, the

trend is expected to be

adopted globally

Partnerships & alliances

Joint-ventures

Acquisitions

Source: Capgemini Financial Services Analysis, 2015



Insurers have started to use Aerial and Digital

Imagery for assessing property

$114.7

bn

The trend has its

origins in the U.S

Estimated market of

global Unmanned

Aerial Vehicles in 2023

Quicker and accurate

estimation

Estimation in zones

restricted for

physical visits

Estimation after a

catastrophe

Source: Capgemini Financial Services Analysis, 2015; “Unmanned Aerial Vehicle (UAV) Market to Reach US$ 114.7 Billion by 2023”, Satellite Markets & Research, February 13, 2014



Insurers are applying Gamification to simplify

complex and tedious processes

Improves customer engagement & loyalty

Better assessment of customers’ risk profile

63%

Percentage of

respondents who

relate to gamification

as fun and rewarding (based on a survey conducted

by JWT Intelligence)

Source: Capgemini Financial Services Analysis, 2015; “Gamification in Insurance: Customer Engagement and Beyond”, Anthony R. O’Donnell, Insurance Innovation Reporter, July 24, 2014



The demand for Cyber Insurance is increasing

Most of the cyber

insurance policies

cover the U.S.

$575

bn

Global financial

impact of cyber crime

in 2014

Businesses can transfer the cyber risk for a premium

Value-added services can help businesses prevent/handle a cyber attack

Source: Capgemini Financial Services Analysis, 2015; "Cyber Risk Insurance Market Outlook With AIG, ACE Ltd, Chubb Corp., Zurich Insurance Co. Ltd, Marsh and Beazley Group Ltd.", PR Newswire, November 18, 2015



Peer-to-peer insurance can provide insurance

at a lower cost

In mature markets,

internet connectivity

and commoditized

product lines are the

key drivers

In developing markets,

reduced premium cost

is an incentive for

adoption

Low cost

Speedy claims processing




Insurers are using mHealth apps to monitor

and improve the health of customers

$26

bn

Estimated market

revenue of mHealth

apps in 2017 100 k

Number of healthcare

apps published in

2014

Enables to judge a

patient’s risk profile

Reduces

administrative costs

Facilitates cross-

selling & up-selling

Reduces health care

spend of customers

Source: Capgemini Financial Services Analysis, 2015; “mHealth App Developer Economics 2014”, research2guidance, May 6, 2014



Insurers are using adherence apps, which helps

customers to regularly follow their medication

Reminds

Counsels

Reinforces

Educates

Simplifies

50% Medication adherence rate for conditions

such as depression in 2011


The information contained in this presentation is proprietary.

© 2013 Capgemini. All rights reserved.

www.capgemini.com

About Capgemini

Now with 180,000 people in over 40 countries, Capgemini is one

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outsourcing services. The Group reported 2014 global revenues

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Economy & Finance

Insurance Top 10 Trends 2016