2024 outlook: Navigating transformative trends in the P&C insurance and insurtech sectors

2024 outlook: Navigating transformative trends in the P&C insurance and insurtech sectors | Insurance Business New Zealand

Technology

2024 outlook: Navigating transformative trends in the P&C insurance and insurtech sectors

Report explores pivotal shifts in tech, consumer expectations, and global dynamics set to redefine insurance landscape

Technology

By
Roxanne Libatique

The property and casualty (P&C) insurance and insurtech sectors are poised for significant shifts in 2024, fuelled by technological advancements and evolving global dynamics, according to intelligent solutions provider Duck Creek Technologies’ report.

The report underscored the transformative changes expected across the industry, highlighting the integration of generative AI, cloud platforms, digital innovations, and the expansion of API interactions.

Amidst these advancements, the industry faces the dual challenges of adapting to climate change and evolving consumer expectations. The insurance sector is increasingly becoming a proponent of sustainable and ethical business practices, with a focus on enhancing risk modelling and improving transparency in customer communications.

The global economic landscape, marked by potential recessions and geopolitical uncertainties, prompts insurers to reassess their market strategies and adapt to changing regulatory environments.

Furthermore, the rise of hybrid work models and the emphasis on environmental, social, and governance (ESG) factors necessitate advancements in digital technologies and a recommitment to sustainable practices.

The report delves into the specifics of these trends, including the impact of natural catastrophes on insured losses, the continued hard market conditions, and the evolving landscape of insurtechs, which face both financing challenges and opportunities for innovation.

Insurtech trends

Consolidation through mergers and acquisitions (M&As) is anticipated to reshape the insurtech sector, with a focus on proven technologies and strategic partnerships. Insurance business models are also undergoing significant transformations, with shifts towards embedded insurance, growth in the managing general agent (MGA) market, and expansion of distribution channels.

Operational efficiencies and talent management are central to navigating the current economic conditions and evolving consumer expectations. The industry is leveraging AI and other technologies to streamline operations, enhance customer service, and address talent shortages.

The report also highlighted the increasing role of AI in underwriting and customer service, emphasising the need for robust privacy measures in light of growing cybersecurity concerns. The adoption of generative AI and the integration of digital technologies are key to staying competitive and meeting the changing needs of the marketplace.

Duck Creek Technologies calls on insurers to adapt to a rapidly changing environment, marked by heightened consumer expectations, cybersecurity risks, and the need for modern infrastructure.