Given that the global economy now seems to have come back on its feet emerging from the recession, the 2015 Crash Course report published by CCC Information Services identified the determining factors that will shape the insurance industry this year, according to an article published on Property Casualty360.
The current lot of young adults, born between early 1980s and early 2000s, are among the best-educated i.e. they hold college degrees. The same demographic also carries significant higher education loan debts. Many still live with their parents before they can find a job or have cleared their debts. Therefore, big buying decisions such as purchase of homes, cars, etc. are still not made by them, which affect their need for insurance.
However, the same purchase decisions, and thus the need for insurance, are likely to change once employment prospects improve for the millennials.
Being up-to-date with technology and constantly updating oneself with technological innovations are, as it should be, among the top-most priorities across the board, in all systems and processes and in every industry. With the new mobile technology, insurers and their insureds can communicate through a digital interface, that is without having to spend time to meet face-to-face, which effectively saves a lot of time. Insurers and their business partners are not only able to streamline the processes but also make communication seamless for their customers.
With the help of telematics, insurers are able to tap into vast quantities of information, access real-time data that are useful for underwriters to gauge driver’s habits and price policies accordingly.
The number of high-profile cyber breaches over the last two years is proof enough that valuable and confidential information is openly available and thus there is an urgent need to install a robust security system in order to minimize data theft. Despite the challenges, most companies consider cyber breach among their primary concerns.