Myriad external forces are affecting today’s P&C insurance market. Even slow but resilient premium growth cannot counter margin pressures prompted by heavy underwriting losses, mainly due to the rise in natural catastrophe losses and overall auto claims costs. Moreover, customer expectations continue to evolve thanks to rapid technological advancements that encourage demand for a digital, simplified, and personalized experience. Voice assistants and connected devices are enabling P&C insurers to increase customer touchpoints and derive meaningful engagements. New business models and sophisticated cyber-risk assessment tools are allowing insurers to cover previously under-insured and uninsured risks. Artificial intelligence (AI), analytics, and distributed ledger technology (DLT) are empowering insurers to enhance fraud detection and loss prevention capabilities, improve operational efficiency, and streamline their internal processes. Strategic partnerships with InsurTech firms and the use of open APIs are fostering innovation and facilitating integration with ecosystem partners. This report explores significant technology trends that will be of strategic importance for P&C insurance firms throughout 2019.

1. Top-10 Technology Trends
in P&C Insurance: 2019
October, 2018

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Top-10 Technology Trends in P&C Insurance in 2019
Digitally Integrated Ecosystem

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Source: Capgemini Financial Services Analysis, 2018
P&C firms are offering value-added services to increase
customer touch points & drive meaningful engagement
Assistance during
adverse weather
Tips on driving
behavior
Home monitoring
Roadside
assistance Value-added services would enable
insurers to be more involved in the
life of customers, leading to
increased dependency and retention

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Source: Capgemini Financial Services Analysis, 2018
Insurers are leveraging connected devices to simplify
claims processing and improve customer engagement
Home and auto maintenance tips increasing
customer touchpoints
Provide personalized covers based on
granular risk assessment
Improved customer engagement
Gather accurate information about loss
leading to better loss assessment
Enables hassle free claims processing
leading to faster payouts
Simplified claims processing

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Source: Capgemini Financial Services Analysis, 2018
P&C insurers are enhancing customer experience by
leveraging voice assistants
Cost-efficient scaling of
operations
Continuous assistance that
can be accessed anytime
from anywhere
Becoming a partner in
customer’s insurance
journey
Personalizing sales
conversations

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New offerings have come that allow insuring previously
uninsured risks & providing dynamic coverage
Source: Capgemini Financial Services Analysis, 2018
Parametric
insurance
On-demand
insurance
Allows for flexible
coverage duration
Enables cost-
optimized coverage
Allows insuring
previously
uninsurable risks
Enables speedy
claim settlements

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Cyber insurance market is expanding with entry of
new players and sophisticated risk assessment tools
Source: Capgemini Financial Services Analysis, 2018; http://www.itpro.co.uk/cyber-security/30122/cyber-security-spending-will-hit-96bn-in-2018
$96 bn
Estimated world
wide cyber security
spending by the end
of 2018
New sophisticated
tools for cyber
risk assessment
Better
understanding
of risks involved
and improved
underwriting
Emergence of
new players
Innovative
solutions that
aim to capture
the growing
cyber market

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Source: Capgemini Financial Services Analysis, 2018
Improved collaboration with ecosystem
partners
Automated claims processing and faster
payouts
Secure and transparent data sharing
Distributed Ledger Technology enables P&C insurers to
improve operational efficiencies
Enhanced fraud detection and prevention
Key benefits
of
leveraging
distributed
ledger
technology

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Source: Capgemini Financial Services Analysis, 2018
Insurers are improving their fraud detection and loss
prevention capabilities by leveraging AI and analytics
Availability of data from
multiple sources
Advancements in AI and
analytics
Need for enhanced
customer experience
Need for cost optimization
Need to reduce loss due to
fraud
Drivers for AI
and analytics
adoption for
fraud detection
and loss
prevention

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Source: Capgemini Financial Services Analysis, 2018
P&C insurers are automating internal processes to
enhance their real-time data handling capabilities
Improved
real-time
data
handling
capabilities
Cost
optimization
and ease of
scaling up
Enhanced
operational
efficiency
Seamless
customer
experience
Increased
productivity
of human
employees
Real-time data handling capabilities can enable insurers
to generate real-time actionable insights and provide
superior customer experience

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Source: Capgemini Financial Services Analysis, 2018
InsurTech firms are becoming the R&D hubs of
insurance firms with a gamut of enabling services
Hackathons and
other
competitions
Ways through which insurance firms select
partners

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Insurers are coming up with open platforms and APIs
to partner more efficiently with ecosystem players
Source: Capgemini Financial Services Analysis, 2018
Increased revenue through cross-selling
Enhanced integration with ecosystem
partners
Improved customer satisfaction
Increased number of insurance apps for
customers
Seamless and timely insurance service
offerings

13. P&C Insurance Trends 2019| October 2018 © 2018 Capgemini. All rights reserved.
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