Business analysts have predicted that the global insurance business process outsourcing market 2017-2022 will have several development parameters and end user demands. Here are a few changes that will reshape the future of the insurance industry in 2018:
- Millennials in the workforce will still be a liable presence to lookout for especially with their unique work habits, benefit requirements and salary demands. The office culture, work and life balance will be updated to adapt to the organizational cult in most insurance businesses.
- There will be exponential growth in technology from software capabilities to hardware options that span to locked-up servers, on- road access and working in and out of cloud computing. Insurers will learn to coordinate employees and end-user demands while offering utmost security, speed and ability to change or alter with the technological evolution all this in an affordable way.
- The major instability in most oil producing nations abroad as well as political clashes on production and distribution in the U.S can affect insurers to expect volatility at the commercial as well as personal front.
- The year is also expected to scale higher in terms of automobile sales especially in terms of greater onboard technology and hybrid additions which would only add to the insurance claims cost.
- Adding to the above is the automobile technology, which is on the rise more than ever as it comes adept with crash avoidance aids, in-dash communication, navigation apps and assistance as well as emergency call automation in vehicles.
- The severity and frequency of the claims also gets affected by the increased number of replacement parts needed in the event of a mishap or an accident.
- Similarly, digitalization and keeping up with the customers online and via mobile for retention will be stressed.
- Telematics or voluntary adoption of driving based data collection would vary based upon the age of the driver.
- Modern technology would also mean easier data breaches.
Finally, insurers who can learn to adapt with the changes will have considerable advantage in the seemingly contemplative and competitive insurance landscape in 2018.