Property & Casualty Insurance Top Trends 2021

1© Capgemini 2020. All rights reserved |
Property & Casualty
Insurance:
Top Trends 2021
December 2020
Link: https://www.capgemini.com/top-trends-
in-2021/

2© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020
Top Trends in Property & Casualty Insurance for 2021 by Capgemini
Source: Capgemini Financial Services Analysis, 2020.
Industry evolution never stops
For P&C Insurers, it is time to revisit business & operating models

Future frontrunners will be
customer-centric, adopt
intelligent processes,
go to market quickly, and
will closely collaborate with
ecosystem partners.

Trend 1: Reinventing business processes
To remain competitive in today’s rapidly evolving risk landscape, insurers must reinvent their business processes and
customer engagement strategy.
The risk landscape is evolving
Disruptive
environmental
patterns
Technological
advancements
Evolving social
and demographic
trends
New
medical and
health
concerns
Changing
business
environment

Trend 2: Entry of Non-traditional firms
Newcomers are leveraging their digital expertise and data management capabilities to provide an experience-led
engagement to insurance customers.
Non-traditional firms’ presence in the insurance space
BigTech firms Product Manufacturers
Coverage for own products
Coverage for products selling on their platform
Insurance distribution
Investments in InsurTechs
Providing Innovative solutions for the insurance industry
Coverage for own products
Insurance distribution

Trend 3: The rise of conversational commerce
Chatbots, voice assistants, and other digital conversational platforms enable P&C insurers to offer service and support,
help customers purchase policies, file claims.
Benefits of conversational commerce
Quicker
resolution
times
Optimized use
of call center
infrastructure
Multilingual
customer
support
Efficient
data
capture
Enhanced
fraud
detection

Faster
turnaround
time
Reduction in cost of
adjustment process
Less effort from
customers
More
accurate
estimation
Enhanced
fraud
detection
Trend 4: Increasing investments in touchless claims processing
As providing better claims experience is becoming a level playing field, carriers are increasingly investing in touchless
claims processing to gain a competitive advantage.
Benefits of touchless claims processing

Trend 5: Increasing usage of IoT devices
The use of IoT plays a critical role in enabling insurers to be a preventer of risks and partner in customers life, in
addition to being a better payer.
Benefits of IoT
Accurate risk assessment
Discounts based on
driving behavior
Easy claims processing
Risk prevention services
Value-added services

Trend 6: The role of agents is revitalized
Insurance firms are investing in digitalizing their agents and are enabling them to be a strategic advisor to their
customers.
Benefits of empowering agents with digital tools
Seamless and
standardized
data exchange
Faster
turnaround time
Increased
distribution
reach
Provide
personalized
advice

Trend 7: Telematics data exchanges gain momentum
As usage-based insurance becomes mainstream, insurers are partnering with telematics data exchanges to create
innovative offerings.
Benefits of telematics data exchanges
Cost-
effectiveness
Pricing risks
more precisely
Ease of
insurance
shopping
Enhanced
fraud detection
Fosters
innovation

Trend 8: Insurers launch new offerings
P&C insurers are exploring offerings that suit customers’ evolving needs to offer an experience-led engagement.
How insurers satisfy today’s policyholders
Cater to changing
customer preferences
Bundled offerings
collaborating with
ecosystem players
Products for
new business models

Trend 9: Collaboration with ecosystem partners
P&C insurers collaborate with ecosystem players to acquire technology capabilities, expand their distribution network,
and bundle insurance offerings.
Benefits of collaborating with ecosystem partners
Faster
time-to-
market
Innovative
offerings
Better
distribution
Better
customer
insights

Trend 10: APIs take center stage
P&C insurers adopt APIs to provide insurance services via ecosystem partners and integrate offerings of other players.
What so great about open APIs?
Faster
time-to-market
Easy integration with
ecosystem partners
Seamless
data exchange
Better
risk assessment

Top property & casualty insurance trends in 2021 – adoption priority and business
impact
 Priority of adoption refers to the urgency of adopting a particular trend to maximize value creation in 2021. This rating is based on the identified trends for an insurer operating in current environment.
 Business impact represents impact of an identified trend on an insurer’s business in 2021. The impact could be on customer experience, operational excellence, regulatory compliance, or profitability.
 This matrix represents the view of Capgemini analysts for an insurer working in the current operating environment.
• Low interest rate environment
• Operational disruption due to COVID-19
• Uncertain regulatory environment
• High competitive environment and increased focus on customer centricity due to new-age players
• Emerging consumer preferences.
The factors above will vary by insurer depending on business priorities, geographic location, and several other factors. For specific requirements, please contact insurance@capgemini.com.
Priorityofadoption(2021)
MediumHighSignificant
Business impact (2021)
Medium High Significant
8
9
7
1
3 25
64
The evolving risk landscape requires insurers to reinvent
business and customer engagement
Non-traditional firms are making their presence felt
in the insurance industry
As self-service becomes the new normal,
conversational commerce is on the rise
With an eye on differentiation,
insurers are investing in touchless claims processing
Insurers are increasingly using IoT
to enhance CX and reduce losses
The role of agents is revitalized
as customers are increasingly using digital channels
Telematics data exchanges gain momentum
as usage-based insurance goes mainstream
Insurers launch new offerings
to provide customers experience-led engagement
More insurers are collaborating with ecosystem partners
to build innovative solutions
As seamless collaboration with ecosystem partners
becomes critical, APIs take center stage
Trend 1
Trend 2
Trend 3
Trend 4
Trend 5
Trend 6
Trend 7
Trend 8
Trend 9
Trend 10
10

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Property & Casualty Insurance Top Trends 2021

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