Insurtech – six megatrends that will change the insurance industry

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By FINTECH Books Contributor, Susanne Møllegaard
Follow: @SusMoellegaard

Megatrend 1: From reactive to proactive insurance, as we know it, is reactive in its nature.

Modern technology challenges the reactive approach and opens up for new possibilities.A number of modern megatrends are influencing the insurance industry in ways that many consider will bring back the trust in the relationship between insurer and insured. Paradoxically enough, the old fashion trust mechanisms are recreated by the application of modern technology and modern ways of co-existing in the sharing economy bringing the industry “back to the future”.In the chapter I will describe the megatrends and add concrete examples on how the trends manifest in startups around the world today.

Megatrend 2: From customership to membership.

We experience an important megatrend in the sharing economy, which allows the insureds to become committed members once again. Megatrend 3: From
transactional to social. The change from transactional interaction towards engagement and social networks is prominent in many areas of our lives today, also the insurance business,and gives rise to a remarkably different approach to customer relationships.

Megatrend 4: From approximate to individual.

The huge amount of data available from the things we own, the road we travel, the people we know and the activities we engage in, offers lots of new possibilities for creating a greater level of trust for both insurer and insured.

Megatrend 5: From analogue to digital.

This is probably the most obvious megatrend. Everything is going digital and the
interesting point is that if you allow your customers a totally digital platform for self-servicing, the level of trust increases due to a greater level of transparency and the fact that they feel in control of the process.

Megatrend 6: From local to global.

Many probably instinctively limit themselves to think that the solutions rising from
the other five megatrends will be limited to local initiatives, but look what
has happened to payments, to house rental, telephony etc. The next thing might
be global platforms for peer-to-peer insurance models with or without local
insurers.