Insurance Industry: Trends, Insights

Part
01
of one
Part
01

U.S. Specialty and Property/Casualty Insurance Trends

There are several current and emerging trends in the property and casualty insurance industry. Telematics and UBI, as well as the use of drones and chatbots, are three that have been highlighted here.

Telematics and Usage-Based Insurance (UBI)


The Use of Drones

  • Drones are being used in the insurance industry to better manage risk and reduce operational costs, which ultimately means better customer experience. They are being used to collect aerial data, provide catastrophe response, conduct research and development, provide claims support, and to perform underwriting services. It was forecasted that by 2020, commercial drones will increase to 2.7 million, with the insurance industry being one of the industries to have adopted it very early in the game.
  • The use of drones is driven by a well-developed regulatory framework that makes the boundaries clearer for their commercial use. There is also a growing demand for data that is of a higher quality to include photogrammetry as well as geospatial analysis.
  • There has been an increase in the demand for drones since data-driven decision-making has been brought into focus over the past few years. They assist insurance companies in delivering better results to customers. Drones are also more attractive because of the development of new technologies to help its adoption in the insurance industry.
  • Companies leading the way in that regard are Allstate and State Farm. Drones have reduced the length of time it takes to produce and issue an estimate for repairs to a property to 4.5 days. Both State Farm and Allstate used drones in 2018 to respond to storm damages.

Chatbots Through Social Media


Research Strategy

In researching the current and emerging trends heading into 2020, we reviewed articles from leaders and marketers in the industry. These articles were based on interviews done with market leaders in the property and casualty industry landscape. They were also from experts who have observed the trends in the industry and have prepared white papers and various types of content. For each trend, we ensured that there were no less than three experts or industry leaders that supported the arguments or findings. We then used examples that were specific to the property and casualty insurance segment of the industry.
Sources
Sources