IDC FutureScape: Worldwide Insurance 2023 Predictions

IDC FutureScape: Worldwide Insurance 2023 Predictions

This IDC FutureScape presents the top 10 predictions for the insurance industry."After the dramatic developments of the past few years, the insurance risk-reward equation has never been so compelling in demonstrating the essentiality of the insurance promise not only to foster global economic health and increased financial wellness but also to protect what people value most," said Davide Palanza, research manager, IDC Financial Insights. "Insurers that have developed and implemented digital-ecosystem-centric strategies designed to flexibly adapt to business disruptions and capitalize on the changed conditions will thrive in the coming years. Digital resilience in the new era of digital-platform-enabled business models is the indispensable condition of success for the whole industry. Now is the time to boldly move forward."

Please Note: Extended description available upon request.


IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: By the end of 2023, global travel insurance providers that will modernize their offerings with parametric capabilities will experience a 10% surge in GWP and a 15% surge in overall NPS
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 2: By 2023, 80% of tier 1 and 60% of tier 2 global P&C insurers will halve the underwriting turnaround by resorting to modern intelligent workbench applications
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 3: By 2024, 60% of commercial line insurers will launch on-demand products for the gig economy by investing in AI to handle the complexity, diversity, and unpredictability of gig worker risks
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 4: By 2024, 60% of insurers building functionally driven open-connected insurance ecosystems will put in place stringent mechanisms to meet evolving regulatory & resilience mandates
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 5: By 2024, a 35% YoY increase in demand for cyber-insurance policies will push toward stronger resilience by adopting ecosystem-led cyber securities services, placing prevention at the core
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 6: By 2025, gamification techniques such as customer incentives & rewards for choosing self-directed customer assistance approaches will lead to a 30% drop in policy administration costs
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 7: By 2025, 70% of FNOL calls will be automatically routed with voice-enabled digital assistants, improving the speed of settlements and claims handlers' productivity
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 8: By 2026, powered by DLT, reinsurers will save up to $10 billion in operational efficiency by eliminating reconciliation pain points, boosting transparency, and bringing complete contract certainty
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 9: By 2027, 60% of global insurers will strategize their market approach for B2B data monetization, predominantly on a transactional basis, by building on cloud computing, IoT, and AI investments
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 10: By 2028, more than 20% of the current insurance business will migrate to embedded distribution, resulting in a more profitable and cost-effective customer acquisition model
Associated Drivers
IT Impact
Business Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
Storms of Disruption — Accelerating, Interconnected Uncertainty
Geopolitical Reality — Sovereignty in the Digital World
Cybersecurity and Risk — Scaling and Evolving Threat Environment
Global Supply Shock — Refocusing on Multisource and Resilience
Digital Business — Stepping Stone to the Future Enterprise
Meaningful Intelligence — Differentiated Decision Power
Ecosystem-Based Innovation — Driving Enterprise Value
Work Mode Upheaval — New Models and Leadership
Everything as a Service — Thriving Through the Change
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