Two for Tuesday: Market Trends and Opportunities
From our recent web readings, we offer two items that caught our eye this week: Want to know where new business opportunities lie? Get insight into trending buyer behaviors? The following trade press articles offer some clues. In Insurance Journal, Amy O' Connor and Andrea Wells focus on five hot markets for 2017, and in PropertyCasualty360, Patricia Harman delineates 10 trends impacting the insurance industry.
Here's a brief a summary of the Insurance Journal market opportunities article, but be sure click through to the full article for more detail and expert commentary on each of the five identified market segments: Cyber Sharing Economy, Active Shooter, Construction, Mergers and More
- Infrastructure - "“If the economy remains healthy, and the consumer continues to lead expansion, the (construction) market could grow at 5 percent a year for the next two years"
- Cyber - "The biggest growth area may be in the realm of the Internet of Things (IoT), which could open the door for a personal lines cyber market."
- Active Shooter - "The agencies spearheading the emergence of this market say the education process on why a typical property or general liability policy doesn’t cover an active shooter event has been arduous, but they believe that down the road this market could become the next cyber or employment practices liability insurance."
- Transactional - "Transactional risk insurance includes a class of policies that cover risks related to M&A, including representations and warranties insurance or warranty and indemnity insurance, tax indemnity insurance, and contingent liability insurance."
- Sharing Economy - "As the sharing economy continues to evolve and grow so does the insurance market. But emerging risks associated with the sharing economy and new technology that enables this budding industry poses challenges for insurers."
The authors identify other markets to watch in 2017 as: Private Flood, Earthquake, High Net Worth, Terrorism, Drones, Transportation, Auto, Product Recall, Environmental, Equipment Breakdown, Surety
10 Trends Impacting the Insurance Industry in PropertyCasualty360 offers annotated insight from a recent Certified Collateral Corporation (CCC) Information Services Inc. report, which examined trends affecting auto and other property casualty insurance sectors. The overwhelming trend? Younger, connected-everywhere, tech-savvy consumers are in the driver's seat and insurers and agents need to be nimble to respond to their demands.
The article discusses these trends.
- Younger, more diverse and digitally connected consumers
- Insurance, technology and claims filing
- It’s all connected - IoT devices
- The rise of online purchasing creates actual road congestion - (think "freight")
- New car sales
- Part costs on the rise too
- Auto claim impacts
- Negative equity in vehicle sales
- Vehicles as an IoT device
- Impacts for insurers