RVS Live: 'Open architecture innovation' will drive new growth for insurers, find Aon GIMO report

"Insurtech could be an enabler rather than a disruptor of the traditional insurance model" is the Aon's latest Global Insurance Market Opportunities (GIMO) report finding. The report launched today examines key areas of potential growth for insurers.

In Aon's view, the fast-growing entrepreneurial Insurtech segment - that has secured approximately USD14bn in investments to date across more than 550 start-ups globally - may have a more supportive role for insurers than previously thought via 'open architecture innovation'. Established organizations play an important role in open architecture innovation, by collaborating in a framework which has both standards that enable scalable solutions for clients and the flexibility that encourages entrepreneurial innovation.

The report reveals that three of the leading areas where analytics can help with insurance industry growth - cyber risk, casualty catastrophe risk, and pathogen risk - could become increasingly insurable through collaborations with Insurtech companies, and technology and analytics providers, thereby opening up new opportunities for insurers and reinsurers to provide new and enhanced products.

Meanwhile, the on-demand economy (ODE) is presenting both opportunity and disruption to the traditional insurance sector, through the requirement for a greater range of time-based insurance products that recognize that assets such as cars and homes are increasingly used on both a commercial and personal basis - driven by the increasing utilization of services such as Uber and Airbnb.

In terms of disruption, the report highlights that US motor pure premiums could decrease by more than 40% of their 2015 levels by 2050 - the point at which autonomous vehicles are expected to be fully adopted. However, while accident frequency is anticipated to reduce as a result of driverless technology, the study warns that accident severity could increase and that a transfer of liability could occur, from drivers to car manufacturers and software providers.

Paul MANG, Aon's Global CEO of Analytics, said: "We know that the insurance sector is facing challenges in the current macroeconomic environment; so we should expect leading organizations in the industry to drive change.  We are already using technology to make us more efficient as a sector, and to expand into emerging risk markets. However, the true transformation will happen as we re-imagine risk management altogether. In this new environment, collaborations, or what we call open architecture innovation, will be key to creating net new growth."

The 2017 GIMO report contains extensive analyses of the cyber sector; it reveals that the handling of cyber risk is moving beyond traditional insurance, and that a typical cyber insurance policy should now offer access to a panel of service providers for incident response and additional services. These services - whether offered by a carrier directly or through partnerships - will provide insurers with a way to broaden their value proposition beyond the traditional insurance policy.

Related articles

Reputation of travel insurers affected by flight operators

The travel insurance industry has perennially suffered from a lack of customer awareness around policy terms, and is currently facing issues surrounding customer satisfaction, according to the research and consulting firm GlobalData.

2017-11-15
photodune-3834701-laughing-girl-xs

"IIF2017 - Insurance in the DIGITAL World" Conference took place in Vienna

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.

2017-11-14

PartnerRe appoints Turab HUSSAIN as Chief Risk Executive

Turab HUSSAIN has been appointed to the position of Chief Risk and Actuarial Officer at PartnerRe, starting from December 4, 2017. He succeeds Marvin PESTCOE, who will retire in 2018 after working to ensure a smooth transition.

2017-11-13

ON THE MOVE

TOP EVENT

photodune-3834701-laughing-girl-xs

"IIF2017 - Insurance in the DIGITAL World" Conference took place in Vienna

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.

14.11.2017

photodune-3834701-laughing-girl-xs

Croatian Insurance Days Live

On 9 November has started in Opatija, Croatia, the 2017 edition of the Croatian Insurance Days Conference, the traditional meeting of the Croatian insurance top professionals with their European peers. XPRIMM Publications are supporting the event as Media Partners.

09.11.2017

photodune-3834701-laughing-girl-xs

The 2017 Baden Baden Meeting: Short recap

The Baden-Baden meeting, one of the key events in the reinsurance calendar, has just set the final point of this year's edition. XPRIMM Publications have reported from the meeting's premises. Let's recap!

26.10.2017

Baden Baden Headlines 3: CEE insurance markets are attractive for reinsurers

Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".

25.10.2017

Baden Baden Headlines 2: cyber insurance market set to grow under regulatory presure; nat cat events more frequent, but losses per event are decreasing

Asian insurance market, especially the Indian market - are considered to be "the new El-Dorado" of the global re/insurance market, with rapidly expanding markets and an dynamic environment: "Indian P&C re/insurance markets are expected to grow at a pace of 15% per annum", according  to Victor PEIGNET, CEO, Global P&C, SCOR SE. The French -based reinsurer setted-up its Indian branch in 2016, after the authorisation from the local market authority - IRDAI. India's re/insurance market has become more attractive for global companies following the relaxation of regulatory requirements, and lately, "big names" in the industry entered the market by opening branches: GEN Re, SCOR, Lloyd's of London, MUNICH Re, SWISS Re, Reinsurance Group of America (RGA), HANNOVER Re, XL Catlin and others.

24.10.2017

BB Headlines: Rates are settled to increase following Q3 events

The main effect after the Q3 nat cat bill of over USD 100 billion: Global reinsures said - the "discounts and reductions in tariffs era" especially in European reinsurance market for the January 2018 renewals, will come to end. At the same time, some reinsurers might disappear and there are likely to be more mergers, acquisitions and run-offs processes.

23.10.2017

photodune-3834701-laughing-girl-xs

Baden-Baden Reinsurance Symposium: the industry-wide impact of disruption

"In our business we are more than used to disruptions [...] But the pace of disruption has been amplified by new sources of data and by the increase in the power to collate this data", James NASH, the President, International of GUY Carpenter stated during his opening address at the Reinsurance Symposium in Baden-Baden on 22 October.

23.10.2017

See all