8 Forces That Will Change the Insurance Industry

Citing the current period as “akin to the calm before the storm,” InsNerds.com offers eight forces that will change the insurance industry:

  1. Systems changes: Insurers ripping out old, outdated systems and moving to modern computer systems.
  2. Telematics and Usage-based Insurance: Pay-by-use is being enabled by technology like Metromile and InsureTheBox that track driving, monitor systems inside vehicles and other devices.
  3. Specialist wholesalers: Insurance wholesalers who work on only one product, especially on the corporate side of the business where they provide coverage that can be hard to otherwise find.
  4. The Internet of Things: More tracking, but this time for devices inside the home, the office and the plant. The widespread use of sensors is creating a new era of data collection.
  5. Decentralized Value Transfer Systems: Think BitCoin and its brethren that allow for money to be transferred seamlessly and largely without human interaction.
  6. P2P insurance: Friendsurance in Germany is allowing users to share the risk of their deductible across their social network. It can lower premiums.
  7. The sharing economy: When no one owns cars, what kind of insurance will they need.
  8. Wearables: Fitbit started this, but there’s a lot more to come as smartphones and other devices track our movements, habits and health, information that can inform insurance pricing and decisions.
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