As the insurance industry’s largest sector, we’ve compiled five top trends of property & casualty insurance for 2020… and beyond.
1. P&C still reigns king. Since 2018, the P&C market’s net income continues to soar. Currently, it’s sitting at $58 billion, up from $39 billion in 2017. This growth is contributed to a 10.5% boost in net premiums, along with the $3 billion underwriting gain (Source: NAIC).
2. Improved climate data and analytics will help reduce risk. Climate and weather forecasts continue to be a key risk factor that P&C insurers must consider when operating in various areas. However, through artificial intelligence and traditional approaches, insurers hope to finally eliminate this risk.
3. Keep an eye on Insurtech. According to J.D. Power, customer-focused digital solutions will be brought on by strong partnerships between traditional carriers and startups. Beyond providing better customer experience, these partnerships may also help insurers by reducing costs and improving business process efficiencies.
4. Data and new technologies will change the game for P&C companies. By using wearables, smartphones, smart meters, and drone data capture, insurers should be able to handle policies and claims more efficiently.
5. Artificial intelligence will continue to make moves into the claims business. By 2025, it is estimated that chatbots will power 95% of customer interactions (Source: Duck Creek Technologies). Chatbots will play a key role in improving workplace efficiency by interacting with customers on filling out policy application or walking them through the claims process.
As you can see, property and casualty trends continue to evolve. Interested in doing a deep dive into the ins-and-outs of P&C insurance? Click the link below!