2016年-德勤全球_2018_Insurance_Industry_Outlook_24页_2mb

2018 Insurance Outlook Summary

Core Content

This report provides an overview of the insurance industry's position as it enters 2018, highlighting the challenges and opportunities that lie ahead. It focuses on the impact of regulatory changes, market dynamics, and technological advancements on both life and annuity (L&A) insurers and property-casualty (P&C) insurers.

Main Goals of Insurers

• Growth: Increase top-line sales.
• Profitability: Improve bottom-line profitability.

Key Challenges

P&C Insurers

• Overcapitalization: Leading to a soft market outside of auto and property-catastrophe lines.
• Rising Auto Loss Costs: Due to expensive new technologies and distracted driving.
• Natural Catastrophe Claims: Increasing due to climate change and recent events like Hurricanes Harvey, Irma, and Maria.

L&A Insurers

• Low Interest Rates: Uncertainty over future rate increases.
• Regulatory Compliance: Adapting to new rules like the DOL fiduciary rule.
• Outdated Processes: Complex application and underwriting procedures that deter customers.

Growth Opportunities

P&C Insurers

• Emerging Markets: Particularly China, which saw a significant rise in non-life premiums.
• Auto Insurance: Higher auto insurance rates due to increased claims frequency and severity.
• Smart Home Technology: IoT devices can provide real-time data for risk assessment and prevention, potentially reducing claims and enhancing customer engagement.

L&A Insurers

• Digital Transformation: Streamlining underwriting and distribution through digital tools.
• Direct-to-Consumer Platforms: Innovators like Ladder and Bima are offering faster, more accessible options.
• Product Simplification: Making policies easier to understand and purchase can boost market penetration.

Key Changes and Trends

• Underwriting Digitalization: Use of medical data, prescription info, and facial analytics to estimate life expectancy and reduce the need for traditional medical tests.
• Auto Telematics: Real-time data helps insurers offer value-added services and differentiate from competitors.
• IoT in Home Insurance: Smart devices can monitor and prevent home risks, leading to lower claims and better customer relationships.
• Cyber Risk Regulations: New standards, such as the New York CISO requirement and GDPR, are increasing compliance burdens and the need for robust cybersecurity measures.

What Should Insurers Do?

L&A Insurers

• Adopt Digital Technology: To enhance customer experience and reduce costs.
• Partner with InsurTechs: To innovate and modernize business models.
• Simplify Products and Processes: Make policies more accessible and user-friendly.
• Comply with Regulations: Especially the DOL fiduciary rule and state-level standards.

P&C Insurers

• Leverage Telematics: Offer usage-based insurance (UBI) to improve underwriting and pricing.
• Invest in IoT: Use smart home sensors to monitor and prevent risks, reducing claims and improving data-driven pricing.
• Enhance Cybersecurity: Implement new standards and practices to protect against cyber threats and meet regulatory requirements.

Final Word

Insurers must adapt strategically and operationally to remain competitive in the evolving InsurTech landscape. Proactive steps in digitalization, regulatory compliance, and product innovation are essential to drive growth and profitability in 2018 and beyond.