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18.10.2017
1845
Peter Lovas, founder of the investment fund EMF Capital Partners and British auto club talks about trends.
Technologies make it possible to abandon the services of insurance intermediaries, reduce the cost of the policy and radically change the approach to customer service.
The world economy is gradually emerging from the crisis. The insurance industry is growing along with it. According to Swiss Re forecasts, the volume of property insurance in the world, auto insurance in 2017 will increase by 2.2%, and in 2018 - by 3%. The trend in the development of the insurance industry will be the widespread distribution of digital services, artificial intelligence, the Internet of Things, social, cloud and blockchain technologies.
But the most serious changes will concern the channels of communication with customers. According to experts from the consulting company Capgemini, in the coming years the share of direct sales, as well as alternative tools for selecting, comparing and purchasing insurance products, will grow rapidly.
Leading insurance companies in Europe and the USA are actively implementing online services, the function of which is to simplify the selection, comparison and purchase of car insurance, and to reduce the time spent on these processes to a minimum. In addition, the company's client receives access to 24/7 support. And this is not only information, but also technical assistance in difficult road situations.
In other words, direct sales channels allow insurers to abandon the services of intermediaries and agents, which will not only reduce the cost of the policy, but also radically change the approach to customer service.
The insurance industry is moving towards providing not only financial compensation, but also technical, consulting and legal support.
The change in the paradigm of the insurance business is also clearly visible in the pace of development of the roadside assistance market. In the UK, for example, its volume already exceeds 1.8 billion pounds sterling per year. And according to the largest automobile club in the USA, AAA, 32 million motorists receive technical assistance annually. 58% of this number are drivers who have purchased assistance packages.
In addition, surveys conducted by American insurers confirm that motorists are increasingly interested in additional services from their insurance companies. For example, 62% of drivers admit that they feel helpless in unforeseen circumstances that arise on the road. And 47% of surveyed car owners say that they need prompt and qualified technical assistance, and are willing to pay for it.
Therefore, in order to retain customers, insurers will be forced to reconsider their approaches to doing business. And this applies to all markets without exception, and developing ones in the first place. According to Swiss Re estimates, their growth will be about 5.7% in 2017 and accelerate to 6.7% in 2018.
In Ukraine, we see a huge field for the development of not only direct insurance, but also additional services and services for motorists that go beyond the standard CASCO.
On the one hand, the emergence of new services is an echo of distrust between insurance companies and their clients. Drivers in Ukraine do not perceive CASCO as an element of protection and peace of mind. They believe that car insurance is a complex, expensive and unreliable mechanism. This means that the growth in popularity of products and services that will become an alternative to CASCO is inevitable. Their task is to meet the expectations and requests of motorists who want to receive not just financial compensation for losses, but also extended service and assistance in any road situations.
On the other hand, drivers themselves are ready to abandon the usual insurance models. According to the Mount Onyx company, which analyzed the markets of 32 European countries, in the UK the share of direct and online sales in insurance has exceeded 30%. According to the Mount Onyx forecast, over the next 10 years the direct sales market in Europe will grow by 44 billion euros, and its volume will exceed 124 billion euros.
Also, according to the report of the consulting company Ernst & Young on the European insurance market, in 2017 insurers will go beyond the classic business models. This is due to the fact that insurance companies will face increased competition and changes in the structure of consumer demand. And the main tool in the fight for the client will not be price, but expanding the list of services, quality of service, refusal from offices and agents, which will be replaced by direct sales.
According to Ernst&Young, more and more attention will be paid to online access to insurance. First of all, in the auto insurance segment. This will lead to the emergence of new products, strengthening the service component and development of technical support, as well as to an increase in the number of InsurTech solutions and their practical application in insurance.
Moreover, according to Ernst&Young, insurers will focus entirely on the benefit of the client. We must set ourselves the task of following the principles of the social contract, honesty and mutual respect. Only under such conditions will we be able to achieve the trust of the client, who will choose a service that can meet his needs and provide real, not ephemeral, protection.
4 key insurance technology trends that could completely change the insurance market
In the first 9 months of 2017, the Kraina Insurance Company paid out more than UAH 113 million in compensation.
