CBInsights-2019财产保险趋势报告（英文）-2018.12-39页-2mb

Summary of "What's Next In P&C Insurance" (2019)

Core Content Overview

This document outlines emerging trends in the Property and Casualty (P&C) insurance industry using the NExTT framework, which categorizes trends based on Industry Adoption and Market Strength. It highlights four main categories: Necessary, Experimental, Threatening, and Transitory trends, each with distinct characteristics and potential impacts.

Necessary Trends

Definition: Trends that are already widely adopted and understood by the industry and customers. Insurers should have clear strategies and initiatives in place.

1. Smartphone Usage-Based Insurance (UBI)

• Auto insurers are increasingly using smartphone-based telematics to track driving behavior and improve risk assessment.
• Progressive and Allstate are early adopters with programs like Snapshot and Arity, respectively.
• Telematics data helps in underwriting, fraud detection, and claims handling.
• Despite slow penetration, participation in the industry is growing, with over 10 insurers mentioning telematics in earnings calls since 2018.
• Partnerships with tech vendors are common, with companies like TrueMotion, Zendrive, and Bosch involved.
• Potential for greater focus in 2019 as early movers enhance data advantages.

Experimental Trends

Definition: Trends that are in early stages, with few functional products and limited adoption. They are generating early media interest and proof-of-concepts.

1. Embedded Home Insurance

• As home buying becomes more digital, home insurance is expected to integrate more closely into the mortgage process.
• Lenders are digitizing their processes, which allows for easier integration of insurance services.
• Blend Labs is a notable example, representing over 25% of the US mortgage market and launching a home insurance agency.
• Startups like Roostify and Matic Insurance Services are also exploring embedded insurance models.
• This trend could reduce friction and improve the customer experience by providing real-time insurance options during the home buying process.

Threatening Trends

Definition: Trends with large market potential and notable investment activity, indicating they may soon become widespread.

1. Commercial Data Automation

• Automation in commercial insurance is growing rapidly, driven by the need for efficiency and accuracy.
• Cyber insurance is a key area with significant growth potential, projected to reach $9B by 2020.
• Cyber insurance is still in its early stages with limited writers, but major carriers like AIG, Chubb, and Travelers are leading the way.
• Insurers are using data analytics to improve underwriting and risk assessment, though there is skepticism from some industry leaders like Warren Buffett.
• Partnerships with technology providers like Guidewire and RMS are increasing to support data-driven risk selection and quantification.

Transitory Trends

Definition: Trends with uncertain market opportunity but showing signs of adoption. They may reveal new opportunities as they gain broader understanding.

1. Conversational AI

• AI-driven chatbots and virtual assistants are being used to improve customer engagement and streamline processes.
• While not yet widely adopted, there is potential for these technologies to become more integrated as AI capabilities improve.

2. Insurtech-as-a-Service

• Insurtech solutions are being offered as services to traditional insurers, allowing them to access innovative tools without full integration.
• This trend could help incumbents adapt to new technologies more efficiently, though it is still in the early stages of adoption.

Key Insights and Market Signals

• Industry Adoption (Y-axis): Indicates how broadly a trend is being implemented.
• Market Strength (X-axis): Reflects the potential size and growth of the market.

Key signals for evaluating trends include:

• Momentum of startups in the space
• Market sizing forecasts
• Earnings transcript commentary
• Media attention
• Quality and number of investors & capital
• Competitive intensity
• Customer adoption (through partnerships and licensing)

Summary of Major Trends

Conclusion

The P&C insurance industry is undergoing significant transformation, driven by technological advancements and changing customer expectations. Necessary trends like smartphone UBI and RPA are already reshaping underwriting and claims processes, while experimental and threatening trends such as embedded home insurance and cyber risk analytics are poised for growth. As the industry evolves, the ability to adapt and leverage these trends will be critical for both incumbents and startups.