3 Trends for the Future of Insurance

The idea of ‘connecting’ has become more meaningful in recent years. After we collectively shutdown during the early days of the pandemic, isolation left us longing for connection…longing to travel and to gather.

This year was effectively the year corporate travel and industry events returned in full swing, and as someone who enjoys engaging with colleagues and clients in person, it’s been invigorating. At Verisk, we recently wrapped up our fourth major hosted event of the year with our Verisk Insurance Conference in London, where our theme was Connect What Matters.

The theme is an invitation to our clients, partners and the entire (re)insurance ecosystem to consider how we can improve the industry and chart a course for a more resilient future together. London—the birthplace of modern-day insurance—was the perfect backdrop for these conversations. Here are a few key trends that emerged from the event.

Embracing Digital Transformation

Digital transformation is top of mind in the London Market, especially with future changes in the Lloyd’s market and around digital distribution.

But digital transformation is a massive opportunity for the global insurance market, as organizations aspire to modernize their platforms, improve system integrations, lower expenses, and improve operational efficiency. In dozens of conversations I’ve had with insurance executives throughout the year, the topics of digitalization and operational efficiency always surface.

The industry is primed for digitalization, and it’s an ideal opportunity to embrace collaboration and connection. We’re starting to see some of the benefits collaboration has for the ecosystem in digital trading platforms in London and subrogation in the UK general insurance market. There is an appetite for greater connection in other business areas, and we expect the trend to continue.

Deeper Data Insights

As the industry embraces digitalization, data and analytics become even more critical. Inflation trends during the past year have underscored the need for accurate, up-to-date and granular data insights to inform underwriting, risk management, reinsurance and claims decisions.

Consider the increased losses from recent extreme weather events. While we may not be able to deter weather activity, we can better understand risk exposures and reconstruction and repair costs through more sophisticated and granular data. There were a lot of discussions this week on the power and potential of getting the right data at the right time and what that could mean for the industry and to necessary mitigation efforts.

The AI Revolution

Of course, you can’t have an event in any industry in 2023 and not talk about the transformative potential of generative AI and AI in general. We’ve been fortunate to have dynamic futurist Anat Baron as a keynote speaker at our events, discussing the fourth industrial revolution of artificial intelligence.

While generative AI is in its nascent state, many organizations—including Verisk—are exploring its use cases in insurance with a careful eye and understanding of the inherent risk the technology presents. However, there are plenty of current AI capabilities in market, helping to automate claims in motor insurance, power predictive models, and enhance customer journeys through natural language processing (NLP).

We’re just scratching the surface of AI, as it promises to reshape our industry and increase the meaningful connections it promises to make in every facet of our lives.