2018年-德勤中国_2018InsuranceIndustryOutlook_24页_2mb

2018 Insurance Outlook Summary

Core Content

This report provides an outlook for the insurance industry in 2018, emphasizing the need for insurers to adapt to a rapidly evolving landscape. The focus is on both growth opportunities and challenges that insurers must address to remain competitive and profitable.

Main Goals of Insurers

• Top-line growth: Increase sales.
• Bottom-line profitability: Improve margins.

Key Challenges

Property-Casualty (P&C) Insurers

• Overcapitalization: A soft market outside of auto and property-catastrophe lines.
• Rising auto loss costs: Due to expensive new technology and distracted driving.
• Natural catastrophe claims: Increased due to climate change.

Life and Annuity (L&A) Insurers

• Low interest rates: Persistent and uncertain future increases.
• Regulatory changes: The DOL fiduciary rule and state-level regulations.
• Outdated processes: Complex application and underwriting systems.

Growth Opportunities

L&A Insurers

• Digital transformation: Streamlining underwriting and distribution to improve customer experience and reduce costs.
• Simplified products: Making policies easier to understand and purchase.
• New distribution channels: Group life insurance, which has surpassed individual policy purchases.
• Direct-to-consumer platforms: Startups like Ladder and Bima are leveraging digital tools to offer faster, more accessible insurance options.

P&C Insurers

• Usage-based insurance (UBI): Telematics and sensor technology offer new ways to assess risk and manage claims.
• Smart home devices: IoT sensors can help prevent losses and provide data for more accurate underwriting.
• Expanding into emerging markets: Particularly China, where P&C premiums have grown significantly.

Key Trends and Developments

• Interest rates: Still low in the US, affecting L&A profitability.
• Insurance technology (InsurTech): Startups are challenging traditional insurers with innovative models.
• Cyber risk: Rising concerns and regulatory pressures are forcing insurers to enhance their security measures.
• Consumer behavior: Younger demographics and tech-savvy users are driving the demand for digital and connected insurance solutions.

What Should Insurers Do?

L&A Insurers

• Adopt digital technologies: Enhance customer experience and reduce costs.
• Collaborate with InsurTech: Partner, invest, or acquire to stay ahead.
• Improve transparency: Educate consumers on data usage and benefits.
• Focus on product simplification: Streamline the application and underwriting process.

P&C Insurers

• Leverage telematics: Offer value-added services to retain customers.
• Invest in IoT: Use smart home sensors to reduce claims and improve risk management.
• Monitor cyber threats: Strengthen security measures and prepare for new regulations like GDPR.

Conclusion

The insurance industry in 2018 faces a mix of challenges and opportunities. Insurers must balance internal operational improvements with external market dynamics. Digitalization, connectivity, and regulatory adaptation are key areas where insurers can differentiate themselves and drive growth.

Key Statistics

• US P&C underwriting losses: Increased to $5.1 billion in the first half of 2017.
• Life insurance coverage gap: Averages $200,000 per household in the US.
• Retirement savings gap: Ranges from $6.8 to $14 trillion among working households aged 25-64.
• UBI adoption: Expected to reach 100 million drivers globally by 2020.

Additional Considerations

• DOL Fiduciary Rule: Has led to significant changes in retirement product offerings and distribution models.
• Cybercrime costs: Financial services companies lead in annualized costs, at $18.28 billion.
• GDPR: Will take effect in May 2018, increasing data protection and reporting requirements for insurers.

Final Thoughts

The future of insurance is being shaped by technology, regulation, and changing consumer expectations. Insurers that embrace innovation and adapt quickly are more likely to succeed in the competitive and dynamic market of 2018.