From Aite Group
Though the U.S. insurance industry is entering 2016 well capitalized and profitable, too much capital capacity does not bode well for pricing as new capital flows in, seeking opportunities and driving pricing competition. Against this backdrop, insurers will be juggling priorities: modernizing their core systems, maintaining profitability within existing portfolios, accelerating their digital transformation, and cultivating new products and services.
• Venture capital investment accelerates in #insurtech: VC investment in insurance technology will accelerate in 2016 as more investors and entrepreneurs take on the insurance sector.
• Zenefits triggers a healthcare brokerage arms race: Employee benefit brokers will up their technology game to better compete with Zenefits.
• Health systems take on health insurers: More health systems will seek to emulate the Kaiser Permanente model and compete with traditional health insurers.
• Recurring medical bill payments go mainstream: Medical providers will continue to expand ways for consumers to pay their bills now … or later.
• Life insurers embrace new triggers: Life insurers will make a genuine effort to use new triggers to market life insurance to key demographics.
• Life insurers prioritize the consumer experience: Life insurance will prioritize IT dollars to transform the user experience over the agent experience.
• Long-term-care insurance makes a comeback: Long-term-care products will make a comeback with new duration options, underwriting techniques, and combination products.
• Small-business insurance P&C distribution gets personal: Small-business insurance distribution via non-traditional channels will make gains.
• P&C retention gets growing attention: P&C carriers will increase their attention to customer retention.
• Insurers accelerate up the bumpy Internet-of-Things road: Insurers will expand IoT projects, even in the face of adversity.
About the authors: Aite Group is an independent research and advisory firm focused on business, technology, and
regulatory issues and their impact on the financial services industry. With expertise in banking, payments, securities & investments, and insurance, Aite Group’s analysts deliver comprehensive, actionable advice to key market participants in financial services. Headquartered in Boston with a presence in Chicago, New York, San Francisco, London, and Milan, Aite Group works with its clients as a partner, advisor, and catalyst, challenging their basic assumptions and ensuring they remain at the forefront of industry trends.
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Investing in Life Policies with Jonas Mårtenson of Ress Capital (Nov 2015)
Reinsurance as an Alternative Investment Strategy (Sep 2015)
A.M. Best on Insurance Industry Hedge Fund Exposures (May 2015)