1.
Top-10 Technology Trends
in P&C Insurance: 2018
December, 2017

2.
Life Insurance Trends 2018| December 2017 © 2017 Capgemini. All rights reserved.Life Insurance Trends 2018 | December 2017 © 2017 Capgemini. All rights reserved. 2
Top-10 Technology Trends in P&C Insurance in 2018

3.
Life Insurance Trends 2018| December 2017 © 2017 Capgemini. All rights reserved.Life Insurance Trends 2018 | December 2017 © 2017 Capgemini. All rights reserved. 3
Connected devices help insurers to proactively mitigate
risk and provide value-added services
a: “Internet of Things (IoT) connected devices installed base worldwide from 2015 to 2025 (in billions)”, Statista, accessed October 2017 at https://www.statista.com/statistics/471264/iot-number-of-connected-
devices-worldwide/
Source: Capgemini Financial Services Analysis, 2017
Connected Devices Customers
Smart Home Sensors
(Ex: Leak Detectors, Smoke
Detectors)
Telematics Devices
(Automobiles)
Sensors at Offices,
Factories, and Worksites
Proactive Risk Mitigation
Value-added Services
Customized Offerings
Real-Time
Customer Data
Data
Analytics
75.4 Ba
Predicted number of
connected devices in
2025, up from 20.4 B in
2017

4.
Life Insurance Trends 2018| December 2017 © 2017 Capgemini. All rights reserved.Life Insurance Trends 2018 | December 2017 © 2017 Capgemini. All rights reserved. 4
Source: Capgemini Financial Services Analysis, 2017
One All-Risk Policy
New Business
Models
P&C firms are adopting new business models which can
transform the way clients consume insurance offerings

5.
Life Insurance Trends 2018| December 2017 © 2017 Capgemini. All rights reserved.Life Insurance Trends 2018 | December 2017 © 2017 Capgemini. All rights reserved. 5
a: World Insurance Report 2017, Capgemini, 2017 accessed October 2017 at https://www.worldinsurancereport.com/
Source: Capgemini Financial Services Analysis, 2017
New Business Models
Benefits of
Automation
80%a
The proportion of surveyed
executives, whose firm are
either investing or planning
to invest in RPA and AI over
the next three years
P&C insurers are increasingly automating processes
across the value chain by leveraging RPA and AI

6.
Life Insurance Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 6© 2017 Capgemini. All rights reserved.Life Insurance Trends 2018 | December 2017 6
a: “FAA Releases 2016 to 2036 Aerospace Forecast”, Federal Aviation Administration, March 24, 2016, accessed October 2017 at https://www.faa.gov/news/updates/?newsId=85227&cid=TW414
Source: Capgemini Financial Services Analysis, 2017
Enhanced
Customer
Experience
Cost
Optimization
Ensures
Safety
Automation
of
Property
Assessment
Scalability
Improved
Speed
and Accuracy
Benefits of
Drones
2.7 Ma
Estimated sales of
commercial drones
in 2020 in the U.S.
Drones are increasingly used by P&C firms to improve
the accuracy and speed of property assessment

7.
Life Insurance Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 77© 2017 Capgemini. All rights reserved.Life Insurance Trends 2018 | December 2017 7
Autonomous vehicles are poised to disrupt auto
insurance business model
a: “Traffic Safety Facts”, NHTSA, February 2015, accessed October 2017 at https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/812115
Source: Capgemini Financial Services Analysis, 2017
Increase in Risk Transparency Transfer Risk Ownership
Enhanced Data
Availability
Reduction in Variables
Affecting Risk
Real-Time Risk
Assessment
Reduction in Risk Exposure
of Customer
Shifting of Risk Liability to
Manufacturer
Change in Nature of Risk
Disruption of Auto Insurance Business Model
94%a
Vehicle crashes
that can be
attributed to
human errors

8.
Life Insurance Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 8© 2017 Capgemini. All rights reserved.Life Insurance Trends 2018 | December 2017 8
Blockchain has the potential to be a game changer in
the insurance industry
a: World Insurance Report 2017, Capgemini, 2017, accessed October 2017 at https://www.worldinsurancereport.com/
Source: Capgemini Financial Services Analysis, 2017
01
02
03
05
04
Key
Benefits
Identity Management
Seamless Access of Data
Fraud Management
New Products and Services
Secured Transactions
59%a
The proportion of
surveyed executives,
whose firm are either
investing or planning to
invest in Blockchain over
the next three years

9.
Life Insurance Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 9© 2017 Capgemini. All rights reserved.Life Insurance Trends 2018 | December 2017 9
Source: Capgemini Financial Services Analysis, 2017
APIs in P&C
Insurance Developing Innovative Applications
Collaborating with Third Parties
Connected Devices – Telematics and Smart
Homes
With APIs, insurers can create new applications quickly
and have seamless integration with other stakeholders

10.
Life Insurance Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 10© 2017 Capgemini. All rights reserved.Life Insurance Trends 2018 | December 2017 10
Source: Capgemini Financial Services Analysis, 2017
Advanced Analytical Technologies New Data Sources
Addressing Intensifying Competition Accurate Risk Assessment
Personalized Customer Offerings Identifying Emerging Risks
More P&C insurers embrace advanced analytics to price
risks accurately and identify emerging risks

11.
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a: World Insurance Report 2017, Capgemini, 2017, accessed October 2017 at https://www.worldinsurancereport.com/
Source: Capgemini Financial Services Analysis, 2017
Mix of
Approaches
VC
Investment
Acquisition
Accelerators/
Incubators
Partnerships
53%a
Insurance executives
that wanted to partner
with InsurTech firms to
leverage digital
technologies
P&C insurers are collaborating with InsurTech firms to
inculcate InsurTech capabilities

12.
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a: “Cloud Native Comes of Age”, Capgemini, accessed October 2017 at https://www.capgemini.com/service/cloud-native/
Source: Capgemini Financial Services Analysis, 2017
Increased Flexibility
Better Agility
Lower Application
Development Cost
Benefits
Improved Scalability
16%a
Proportion of insurers
already creating new
applications using
cloud-native approach
P&C insurers are increasingly following a cloud-native
approach to adopt new technologies

13.
Life Insurance Trends 2018| December 2017 © 2017 Capgemini. All rights reserved.
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