Deloitte Is Upbeat in Its State of the Industry and Global Risk Surveys
The insurance industry is undergoing a noticeable transformation in customer expectations, behavior, spending, and commoditization. Simultaneously, technological improvements are contributing to new entrants in the industry, and are changing how products are designed, underwritten, and distributed. As these changes reshape both competition and opportunity, Deloitte remains upbeat about the industry’s future revenue growth – and so should you.
The 2015 Deloitte State of the Industry report shows favorable growth for P&C industry, stating the economic recovery is boosting exposures requiring coverage. Positive premium growth should continue.
Some trends to keep in mind include:
- Cyber-liability is on the rise as a prominent exposure. Mid-size and small businesses will face potentially critical events if faced with a cyber-attack. It is imperative that you educate your clients about cyber-risk issues. Don’t know where to start? Check out INSUREtrust to learn more.
- Usage-based auto insurance should increase significantly during the next few years. (Check out our July blog on the KPMG study on driverless car growth.)
- Telematics may be the next “big thing” as remote, web-based technologies are becoming more prevalent for commercial businesses. Today, products are able to transmit their location and status in real time. Have an interest in getting ahead of the game? Connect with Dave Bauer of Orionto learn more. The market is growing for sustainability-related products and services. You can capitalize on this trend.
The study states that successful agents and brokers will “develop precision around who the consumer is and specificity with regards to their needs.” In other words, your professional growth is dependent upon your consultative and diagnostic talents. The study shows that consumers want and expect “tailored, simple, and flexible solutions that correspond to their individual requirements.”
The risk management study also stated that organizations of the future will “require strong risk management capabilities, robust risk infrastructures, and timely, high-quality risk data” that is shared across the organization.
These findings create a significant opportunity for you. Most mid-size decision-makers “wear many hats” and have an ad-hoc approach to managing risk in terms of objectives, policies and processes, and organizational structure. You can help these organizations calibrate their business risk processes with statistical precision by incorporating technology, identifying risks, providing a well-articulated risk management process, and maintaining a valuable risk measurement system. Proper training can exponentially help you stand out as a risk management professional and provide the much-needed analytics and mitigation strategies before a major claim occurs.
Bottom line, Deloitte’s 2015 surveys present a positive outlook for the insurance industry. They also point out deficiencies in risk management for many businesses, which creates a noteworthy upside for your value in the marketplace.