Blog: Five emerging trends to watch out for this year

This time it's personal
Risk aggregation, the bedrock of traditional insurance, is increasingly being replaced by tailored cover based on individual risk profiles. The ability to use personalised data instead of generalised proxies, as in the case of black box telematics devices, will allow underwriters to be more selective, but also increase consumer demand for a more personalised service tailored to their individual needs.

Sharing is caring
While some believed the sharing models perpetuated by the likes of Air B&B and Uber would be a short-lived fad, government, regulators and companies are increasingly taking bets on the growth of the so-called ‘sharing economy'. Insurers have had trouble getting their heads around this trend, but there are significant gains to be made by those first to grasp the nettle and respond to the need for policies to meet these new modes of ownership and use.

Telematics goes mass market (possibly)
2015 could be the year telematics sheds its reputation as a niche product for distressed risks such as young drivers and starts to appeal to other demographics. However, most believe this is more likely to be in the smaller end of the commercial space, as any benefits in the competitive personal lines space could be eroded by device installation costs.

Big data - an opportunity and a threat
While there are a number of parallel trends likely to make it big in 2015, many are underpinned by the same enabling factor- big data! But while licking their lips at the possibility of ever more granular information on current and potential clients, insurers must be aware that the same factors allowing them to price more accurately leave their insureds more vulnerable to cyber-attacks.

Regulation Regulation Regulation
2014 was the year the Financial Conduct Authority bared its teeth and the financial watchdog will continue gnashing its incisors - in a targeted manner - over the next twelve months. In the broking space, client money, conflicts of interest, and methods of broking will all face scrutiny, while general insurers could end up in hot water around their use of data. Innovation may be at the top of many company agendas, but compliance will continue to place significant demands of time and resources.

For the full article see http://www.postonline.co.uk/post/analysis/2389329/2015 -trends-looking-to-the-future