Insurance forecast to be bigger but invisible

At a recent SAP Digital Insurance Innovation Summit in the US, experts predicted that insurance as we know it won’t be a thing in the future; it will invisible, seamlessly embedded in other services.

“Insurance will be much bigger, and there will probably be more — because there will be many more risks,” SAP Global Head of Insurance Bob Cummings said during his keynote at the SAP Digital Insurance Innovation Summit.

A recent white paper from SAP and Ovum titled “Technology Transformation in the Global Insurance Industry” says insurance model will be radically different in five years. It states that, to remain competitive, insurance providers must take a proactive approach to helping customers manage risk through technology-enabled “insurance-as-a-service” solutions.

Cummings predicts that in the future vendors might only sell insurance when it’s packaged together with other services and that a lot of those models are already emerging.

Customers of insuretech start-up Tr­­­ōv can already protect their valuables by turning coverage on and off of individual items — whenever they like — via their mobile device. Hailed as the tinder of insurance, Trov launched in Australia in May this year.

“This is all very relevant, very time-critical information because — by the time he (a customer) actually contacts us — he will have done a lot of comparisons,” SAP’s Roland Bloesch said at the summit.

This bundling of different data is also critical for predictive analytics, which can forecast the customer’s next priorities, according to Bloesch, SAP’s insurance customer engagement head. Brokers, agents and advisers can use that information for active outreach — instead of just waiting for the customer to call.