7 Trends impacting the insurance industry in 2024

Working with many of the world’s leading Insurance companies, I see first-hand the challenges and disruptive trends impacting the industry. I hear that the turbulence of the last few years isn’t going away, competition is increasing, consumers and stakeholder expectations are higher than ever before. Data and technology can be a game changer.

We help many of the major players navigate these challenges with the help of data and analytics, which are becoming increasingly central to how Insurers adopt new technologies, transform claims and underwriting, understand credit and compliance risk, perfect prospecting and improve customer experience.

I’ve identified 7 disruptive trends affecting the Insurance industry in 2024:

1.Consumer Demographics, Expectations and Behaviour

There is a continuing shift in demographics and behaviour of Insurance customers across all sectors. A more diverse and aging population, shift towards digital and changes in demand for cars and real-estate will lead this. Consumers are largely price sensitive, disloyal and with little brand preference as offerings feel the same. Rising customer expectations will give rise to an increasing number of holistic risk services that are personalised, device orientated and easy to use. Insurers must ensure they are providing a strong customer experience to improve loyalty. Having a single, 360 version of the truth throughout the business when it comes to customer and prospect data can go a long way towards this. Working with an external data provider can ensure data is accurate and flows consistently through the organisation.

Data and analytics are key to adopting new technologies, transforming underwriting and claim assessments, understanding risk, perfecting prospecting, and improving customer experience.
James Harrison, Global Head of Insurance

2. Market Competition and Differentiation

2024 will continue to see an increase in competition through years of consolidation across Brokers and Insurers, and across all business lines, leading to economies of scale. Competition has also increased from non-traditional players. Consequently, market differentiation is a growing problem and distinct new offerings present a huge opportunity for first movers this year. Insurers can use new sources of information such as intent and targeting data, to power their prospecting, and reach the right market with the right messages at the right time


3. Lagging Innovation

Product innovation has been lacking in Insurance for a long time, and offerings from Insurers largely have only provided loss indemnity to customers. 2024 will see a growing rise in using behavioural economics and analytics (such as telematics and usage) and third-party company data, such as that provided by Dun & Bradstreet, to help insurers expand offerings to consumers beyond loss prevention products. 

4. Stakeholder & Regulatory Scrutiny

Investors, regulators, and governments will be increasingly focused on the industry’s response to pandemics, catastrophes, climate change etc – of which there has been an increased frequency in the last 5 years. This is in addition to scrutiny on compliance and other regulations which will continue into 2024 due to increasing sanctions, beneficial ownership and politically exposed persons (PEPs). Consequently, Insurers will be looking to modernise operating models and develop new strategies to future-proof their business against a rise in claims, risk and client demands. This also includes looking at new data sources such as ESG ratings and shipping files to evaluate risk exposure.

5. Challenger Opportunities

There has been significant internal and external disruption to the Insurance industry over the last few years and this isn’t slowing. Investment Banks are providing insurance-linked securities (ILS), original equipment manufacturers (OEMs) are offering point of sale insurance and Reinsurers are increasingly looking at primary insurance. Non-traditional players will continue to redefine customer expectations in 2024 with innovative operating models, multi-channel experience and products. Comparison sites will support this growth and challengers will be able to capitalise on this by being nimbler and providing a better customer experience.

6. Data & Technology Advancements

Rise of new technology trends such as IoT, big data, smart technologies all present opportunities for insurers to become more efficient, process driven and cost effective. In 2024 AI will become especially important and will be most successful in those organisations that have a foundation of structured and well-managed data throughout the organisation. First mover insurers will be able to offer new ways of consumer interaction, automate procedures and provide tech enabled risk prevention products. 

7. Marine Risk

Underwriting marine risk has always been challenging, but with a series of unpredictable events in the last 4 years and the current conflict in the Red Sea, the risk profile for the industry is becoming more complex. According to Reuters, war risk insurance premiums rose from 0.7% to around 1% of the value of a ship during January, with rates expected to move higher as underwriters try to understand the risk exposure. Data, such as D&B Shipping Intelligence, can provide accelerated insights into accumulation of values on board each vessel and routes taken to support underwriters to assess risk more accurately.

If you’re interested in discussing how data and analytics can be part of your 2024 strategy, simply email hello@dnb.com with a date and time that suit you and the team will be in touch.

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