The world is changing and so are the risks and the way we deal with them. Insurers’ offerings have to adapt to new needs. The property crisis, the mobility revolution, medical breakthroughs, the growing importance of intangible assets and climate change will shape the future of the industry.

We live in a society marked by globalisation, digitalisation and hyperconnectivity. In addition, artificial intelligence is advancing by leaps and bounds and climate change is an increasingly palpable reality. All these elements are changing the insurance sector and the range of products we will have at our disposal in the coming years.

Artificial intelligence, in particular, will move the business from claims management to loss prevention and risk advisory services. Big data will enable the volume of claims to be reduced to a fraction of what it is today.

Experts suggest that the insurance experience as we know it will lose value and insurance will tend to become just another feature of a product or service provided by an actor trusted by the consumer. 

Five radical changes

Against this backdrop, we outline the major trends that will shape the industry in the coming years:

1. The crisis of ownership. New generations tend to own less stuff and rely more on the consumption of shared products and services, which will require major changes in business areas such as car insurance.
2. The mobility revolution. We are moving towards mobility systems with increasingly autonomous, connected and shared vehicles. Mobility understood as a service that can involve different means of transport on each journey will mean that insurers will have to rethink the concept of vehicle insurance in favour of “travel” insurance, the price of which will be adapted to each journey we make.
3. The rise of preventive medicine. In health, special attention is being paid to concepts such as preventive medicine, pharmacogenomics and remote assistance. We will have more and more tools to monitor our bodies and analyse our health. But with an increasingly long-lived society, it will not be enough to monitor and digitise everything. The human factor will continue to be an important element.
4. The importance of intangible assets. At present, there are relatively few policy options for intangible assets that are becoming increasingly important to companies, such as intellectual property, brands, networks or customer data. And all of these are critical assets for businesses. 
5. Extreme weather. With climate change, natural catastrophes will tend to increase over the years. Insurance companies will need to develop capabilities to guide their users on how to live sustainably and avoid risks. In this respect, the evolution of predictive technology will be a great ally in alerting, preparing and making decisions in the face of fires, floods and other natural disasters.

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