The insurance industry is always changing and evolving to meet the needs of its customers. In recent years, there have been a number of trends that have emerged in the industry and are expected to continue into 2023. Here are some of the top trends, as per Gary Pryor, to watch for in the insurance world over the next few years.
Gary Pryor’s List of Current Trends in The Insurance Industry
1. The increase in insurance premiums
One of the most notable trends, according to Gary Pryor, in the insurance industry is the recent increase in premiums. This is due to a number of factors, including the rising cost of medical care, the increasing frequency and severity of natural disasters, and the increasing number of people who are living longer and thus requiring more coverage.
2. The rise of digital technologies
Another trend that is having a major impact on the insurance industry is the rise of digital technologies. In particular, insurers are increasingly using data analytics better to assess risk and tailor policies to individual customers. This has led to a more personalized approach to insurance that is benefiting both consumers and providers.
3. The growth of alternative risk transfer
Alternative risk transfer (ART) is another trend that is growing in popularity in the insurance industry. ART involves the transfer of risk to third parties, such as reinsurers, capital markets, or insurance-linked securities. This helps to diversify risk and can lead to lower premiums for policyholders.
4. The emergence of new players
The insurance industry is also seeing the emergence of new players, such as online insurers and InsurTech startups. These companies are using technology to provide consumers with more innovative and affordable products and services.
5. The increasing regulation of the industry
Another trend that is impacting the insurance industry is the increasing regulation of the sector. In particular, there is a greater focus on consumer protection, solvency, and governance. This is leading to higher standards for insurers and more protection for policyholders.
6. The impact of climate change
Climate change is another issue that is having a significant impact on the insurance industry. In particular, insurers are increasingly concerned about the potential for weather-related events, such as hurricanes and floods, to cause damage and disrupt operations. As a result, many are taking steps to mitigate their exposure to these risks.
7. The evolving role of brokers
According to Gary Pryor, the insurance broker is also evolving in response to the changing landscape of the industry. In particular, brokers are increasingly working with InsurTech startups to provide customers with access to innovative products and services. This is helping to make the insurance sector more efficient and effective.
Gary Pryor’s Concluding Thoughts
These are just some of the key trends that are shaping the insurance industry today, says Gary Pryor. As the sector continues to evolve, it is likely that we will see even more changes in the years to come.