With a range of products offered for consumers – from property and casualty to life tightly integrated to local demography – trends and challenges of insurance providers vary vastly. In the US, a variety of factors demands new approaches: the economic slowdown and advent of sharing economy services, the passing of the Affordable Care Act with the expansion of the consumer base, which adds an unknown quantity of risk, and the view of Gen X, Y and now millennials that is significantly different from that of baby boomers, which impacts life and retirement coverages. Factors are different, but the pattern is similar in the rest of the world in developed or emerging economies.
There is a clear divide in the needs of the baby boomer population to those of the younger population. Automobiles are being designed for keyless entry and start, homes have ramps and elevators – and the trend is going to get even more complex as the speculative nature of traditional sources of energy continues. The majority of consumers that use retail interaction models with their suppliers and service providers expects a greater degree of transparency, ease of switching providers with the least penalty and fine tuning of the products they use depending on their stage in life.
Irrespective of the threat to privacy, prospective clients expect their governments to address security issues while freely sharing their personal details on the web. They also also inclined to accept the notion of someone monitoring their activities 24x7. Such aberrations change the dynamics of risk rating. Extending the same expectations, prospective clients will demand shorter turn-around on policy decisions and claim settlements.