2017 will be the year that digital risk insurance really gets off the ground. Read on to discover where, Athena, our robot thinks your job, your home, your vehicle, your life and organization will be affected by the sweeping changes that threaten to completely disrupt the traditional insurance business models; much like the changes that swept aside newspapers in favour of blogs and social media.
What is changing?
Markets
The global insurtech market is expected to grow steadily over the next four years with a CAGR of more than 10% by 2020.
Revenues in the global market for private health insurance-already €1.3 trillion-are expected to double by 2025.
The global IoT insurance market is expected to be worth USD42.76 Billion by 2022.
The Asian insurance market is the fastest growing insurance market in the world and it is expected to drive the global market over the next few years.
Digital disruptors will not take the global insurance market by storm.
The power of Internet and mobile communication will reshape Africa's insurance markets.
79% of consumers will access insurance companies digitally within the next 5 years.
The coming year will be a year of continued disruption for the US life-annuity insurance market.
A growing US workforce are expected to boost demand levels for life insurance and annuities products over the next few years.
In a highly-connected world, insurance executives recognise that matching insurance offers to a specific customer context will be the key to retaining leadership in an ever more commoditised world.
"Insurance pools" will become more commonplace in the future as insurers seek new ways to ensure as much of the world's assets can access insurance as possible.
A growing US workforce are expected to boost demand levels for life insurance and annuities products over the next few years.
In 2017 insurance companies, will give highest priority to customer experience to stay competitive and ensure a successful digital evolution.
Insurance firms will be putting serious resource into their partnering capabilities through 2017 so that they are ready to team up with the best InsurTech companies as they emerge.
Home and Vehicles
Publisher's analysts forecast the global automotive usage-based insurance market to grow at a CAGR of 7.93% during the period 2017-2021.
Insurance for self-driving cars in the UK will need to cover both times when the driver is in control and when the vehicle is driving itself.
20% of car insurance policies in the U.S. will incorporate some form of a usage-based model.
Global Automotive Usage-Based Insurance Market is Projected to grow at 7.93% CAGR during the period 2017-2021.
Autonomous cars will not be "stealable." Auto insurance industry will lose over $150 billion a year.
A self-driving car sold in 2030 will still need to be secure in 2050.
The contraction of risk pools in personal home and motor insurance could shrink global non-life premiums by up to 5 per cent or USD100 billion.
79% of consumers will access insurance companies digitally within the next 5 years.
Digitally-enabled motor insurance policies in Europe could be worth €15 billion (£13.2 billion) by 2020.
Wearables
59% of global banking and insurance executives expect wearables to become a common payment device for consumers within two years.
Health
Republican plans to reform the US healthcare system will lead to a huge redistribution of funds from poor to rich Americans and could see millions of low-income people lose their health insurance.
2017 will be the year when the behemoth system of health insurance will start to change with data provided by patients.
The revenues in the global market for private health insurance-already €1.3 trillion-are expected to double by 2025.
Blockchain
Consumers could save up to $16 billion in banking and insurance fees each year through blockchain-based applications.
Pets
The U.S. pet insurance market is predicted to experience steady growth between now and 2020.
Jobs
There is a 99 percent probability that by 2033 human telemarketers and insurance underwriters will lose their jobs to algorithms.
With insurance professionals retiring, and digital transformation accelerating, insurers will face a wider talent shortfall in 2017.
Tax
Conditions in Washington make it likely that 2017 will bring significant changes to how U.S. domiciled insurance companies will be taxed.
Implications
Healthcare
Democrats and insurers are warning that any delay in replacing Obamacare could throw the individual insurance market into chaos for 2018.
Tens of millions of people could lose their insurance if US Republican efforts to block grant Medicaid were successful.
The U.S. could save an estimated $592 billion annually by slashing the administrative waste associated with the private insurance industry ($476 billion) and reducing pharmaceutical prices to European levels ($116 billion).
Brexit
UK insurers may be able to continue to access risks freely across the EU for marine, aviation and transport insurance.
Security
The global cyber insurance market could amount to $20 billion by 2025.
Who is responsible when a self-driving car crashes? Insurance companies aren't sure yet.
Digitally-enabled motor insurance policies in Europe could be worth €15 billion (£13.2 billion) by 2020.
Mature mobile insurance markets could shrink by 15% to 72% by 2040.
Disrupters
Global data centre company Equinix has collaborated with Lloyd's and the Lloyd's Market Association to enhance a catastrophe risk modelling platform that could change the face of the insurance industry.