For 2019, what are the emerging trends for the property and casualty insurance industry? Evolving technology, terrorism, natural disasters, and increasing threats of cyberattacks present factors that impact the trajectory of insurers. For insurance producers and advisors, staying on top of these trends is equally important for risk management and insurance counsel. Here are three trends that will play a part in shaping the insurance and risk management landscape this year.
Wearable Technology in Wellness Programs
Wearable technologies are on the rise, and shipments are expected to reach 225 million in 2019, according to Gartner. This includes smartwatches, head-mounted displays, smart clothing, ear-worn devices, wristbands, and sports watches. Because they help increase employee health and reduce claims costs as well as absenteeism and tardiness, the use of wearable technology in wellness programs is expected to reach 90 percent by 2021.
Cyber Coverage Evolution
New laws and regulations mean insurers must continually assess and adjust cyber coverage products. Two of the most recent changes include the General Data Protection Regulation (GDPR), which went into effect May 25, 2018, in the European Union and the California Consumer Privacy Act (CCPA), which goes into effect Jan. 1, 2020. They are not only complex but also bring with them the potential for high fines and penalties.
The use of unmanned aerial vehicles (UAVs), more commonly known as drones, is a perfect fit for both pre- and post-loss purposes. For example, after catastrophic events like Hurricane Michael, which decimated the Florida Panhandle, insurers are able to deploy drones to assess the damage quickly, easily, and more important, safely.
Currently, the insurance industry represents 17 percent of commercial drone use, but that figure is expected to rise considerably. According to Deloitte, insurers are expanding commercial drone use as they eye “two strategic objectives: better risk management through improved data collection, and reduced operational costs through improved efficiency and effectiveness related to claims.”
The velocity of change and growth in technologies that impact the insurance will not slow up any time soon. That means their impact on insurance coverages, risk management strategies, and claims impacts will not slow as well. Be sure to stay informed as these and other trends develop so that you can provide expert counsel for your clients at all times.