Projecting Industry-Wide Changes in 2015 and Beyond

The past few years have brought a large volume of changes to the insurance industry as a whole, regardless of the market you serve and types of insurance you provide. While some changes only affect particular components or segments of the insurance world, it is necessary to understand how the industry is changing as a whole to project where things may be headed in the next few years.

Health & Life Insurance:

The life insurance landscape may see the largest overall changes in business direction over the coming year. Some changes we expect to see are larger shifts into the digital landscape for providers, both on the information front as well as the sales front.

With the growing emphasis on digital, there are many ways that agencies are now utilizing the Internet to grow their customer base as well as better qualify leads before they make their way into the sales funnel. As more consumers are researching products online, as well as directly purchasing, a need for new technologies is emerging. These technologies include those that automate underwriting, policy insurance and sales support routing. While no significant changes will most likely be made within the year, expect to see the groundwork for these concepts begin during 2015-2016.

“It’s all about better serving your customer base. That could mean devoting greater resources to direct sales channels, boosting advertising or better leveraging the Internet and digital customer-facing technologies like Skype and telephone hotlines.

The Internet has done a reasonably good job educating consumers about life insurance, annuities and other financial solutions. The industry is now migrating to the next distribution phase wherein consumers can not only do product research but also transact business through the Internet. This transition calls for new technologies that automate underwriting, policy issuance, as well as pre- and post-sales support.” – Doug French, Managing Principal of the Insurance and Actuarial Advisory Services of Ernst & Young LLP (via

Property & Casualty:

While the day-to-day operations of P&C insurers isn’t changing quite as drastically in the short term as some others within the industry, it is projected that P&C insurance providers need to take a more in depth look at the way policies are managed in the future. Specifically, P&C insurers need to look beyond the next 3-6 months and identify potential growth areas based on their business intelligence that allow them to properly forecast the direction their business is heading, beyond simply looking at the ebbs and flows of the economy as indicating factors. Examples of these growth opportunities may include new product offerings, including those extending into the cyber insurance market focusing on the risk management and cyber security. You may also see these types of coverage referred to as privacy coverage, as even though the bulk of coverage pertains to Internet data security, the true heart of the coverage is actually in personal privacy. With the explosive growth experienced in this sector even since the beginning of 2014, it is not unexpected to see this become a boon for the industry over the coming years as coverage extends and pricing becomes standardized.

We’ve already determined that information will be the cornerstone for these changes moving forward, regardless of vertical market. This information and data will help establish more effective pricing, underwriting and marketing, all the while improving the overall customer experience. Additionally, expect to see all sectors of insurance look to better utilize their growing databases in ways not typically used before. This information can be leveraged in new business acquisition, the enhancement of existing policies and products, as well as simply enhancing the day-to-day management aspects of the business side of things.

These are just a few of the changes that may take place in the coming year and beyond. While these are simply projections, these are just some of the ways that we expect to see the insurance industry move and grow in the coming year.