The buzzword of the year is disruptor. But if you are prepared for what is around the corner, you might find the word “first-mover” more appropriate. CCC Information Services provides 10 changes that will reshape the insurance industry in 2015.
- Millennials in the work force—Their work habits, benefits needs, salary demands, office culture and work/life balance require organizational adaptation at most insurance industry businesses.
- Technology’s exponential growth—From software capabilities to hardware that spans locked-up servers, on-the-road access and working in and through the cloud, insurers must coordinate employee and end-client user demands while providing security, speed and the ability to change with technological evolution…all with cost in mind.
- Petroleum prices—With instability in major oil-producing nations abroad and political clashes over production and distribution in the U.S., insurers can expect volatility in commercial and personal lines.
- Auto accidents—With improved economies comes increased travel, which is compounded by distracted driving and poor road conditions.
- New vehicle sales—Auto sales rose 6% in 2014, and the average price of a new car was $33,168. Onboard technology and hybrids add to insurance claims costs.
- Automobile technology—Crash-avoidance aids, in-dash communications, navigation assistance and emergency call automation are becoming more standard.
- Auto repair costs—Frequency and severity of claims are affected by the increasing number of replacement parts needed when accidents occur.
- Digital business—Insurers will have to interact with customers online and via mobile if they want to keep them.
- Telematics—Voluntary adoption of driving-based data collection varies based on the age of the driver.
- Data breaches—Cyber security and data collection and use seem to be at odds. The conventional notion of privacy is being altered, but breaches can be costly.
Insurers who successfully grapple with changes that are underway or around the corner will have significant advantage in an increasingly competitive landscape.