- World Economic Forum(WEF) Global Risks Report 2019 highlights worsening international relations hindering action across a growing array of serious challenges
- Comments on Brexit vote impasse
- Allianz Risk Barometer highlights cyber and concerns around Brexit as as top risks in UK
- Willis Re's Summary of Natural Catastrophe Events 2018 report estimates insured losses from major natural catastrophes at around $71.5bn
- BIBA highlights opportunities for business in 2019 Manifesto
- UK Comprehensive car insurance prices fell by 6% in 2018 says Confused.com/ Willis Towers Watson analysis
- Insurance Europe concerned that the European Commission’s proposal for an ePrivacy Regulation could hamper insurers’ ability to offer innovative insurance policies to consumers expired
- ArgoGlobal collaborating with broker Axieme and digital platform Jobby in Italy to respond to a need for on-demand, pay-as-you-go insurance for temporary and short-term workers expired
- LV= General Insurance successfully deploys Guidewire Core and Data solutions in the largest transformation the business has ever undertaken expired
- Marsh announces that it had placed more than 10,000 risks in 2018 through Placing Platform Limited(PPL)-over 15,000 in total expired
- ZhongAn and Grab to establish joint venture company to enter the digital insurance distribution business in Southeast Asia expired
- Greenlight Capital Re becomes largest shareholder in Chicogo-based MGU AccuRisk expired
18th April 2018
Global Data reports that over 30% of UK consumers say they would purchase some form of insurance product from alternative providers such as Google, Apple, Facebook, and Amazon
The UK insurance market remains vulnerable to the entrance of ‘alternative providers’ such as Google, Apple, Facebook and Amazon(GAFA), with over 30% of consumers saying they would purchase some form of insurance product from certain providers, according to GlobalData. This suggests an opening potential of around £9bn in UK gross written premium.
The company’s latest report: "The Impact of Alternative Providers in Insurance" states that the insurance industry has seemingly awoken from a slumber in the last few years and is now comparatively surging with innovative energy and insurtech propositions. However, with the industry still learning to build closer engagement with customers, there is a clear opportunity for ‘alternative providers’.
Daniel Pearce, Financial Analyst at GlobalData, explains “The technological capabilities of these alternative providers far exceed those of current market incumbents and with consumers open to purchasing an insurance product from them, the demand is also there. Should the likes of Amazon and Google enter the insurance industry, disruption will be widespread, particularly within the home, motor and travel markets where consumers are most open to purchasing some form of insurance product.”
For example, with almost a fifth of consumers open to purchasing home insurance from Google, there is an opportunity for the tech giant to leverage its smart home devices in this space. The insurance industry is swiftly moving into territory where the ability to thoroughly understand the customer, implement technology to effectively pre-empt a number of claim situations and be brands that are trusted, particularly with customer data, will be pivotal. The tech brands lead on the potential to achieve these goals.
In order to overcome the potential threat of alternative providers, insurers would be best collaborating with these companies in order to leverage their knowledge of the latest technologies and further enhance their product offerings.
Pearce continues “The threat which is often talked about within the industry is from these alternative providers; however insurers should also be aware of the potential threat posed by reinsurers, who have been investing heavily in a number of customer-facing InsurTechs and may be in a position to bypass primary players.
Over the next two years the threat posed by both alternative providers and reinsurers will likely become a reality. However, from a consumer perspective, increased competition in the market and the implementation of the latest technologies will only prove to be beneficial with the potential for lower premiums and increasingly personalised products.”
Global Data Trends(8 articles)