UPFRONT
HEAD TO HEAD
What will be insurance’s biggest challenge in 2019? From rapidly evolving technology to massive consolidation, the industry will have no shortage of challenges next year
Chief innovation officer Nationwide
Scott Sanchez
Laird Rixford
CEO Insurance Technologies Corporation
J. Patrick Gallagher Jr.
“Defining and leveraging innovation will be the biggest challenge and opportunity in 2019. We’ve seen accelerated disruption in our industry by startup companies, especially in the insurtech and fintech spaces. ‘Innovation’ can mean different things to different people. Nationwide defines it as delighting people by solving their needs in ways they can’t even imagine. We are focused on new opportunities that will transform how we meet consumer demand and serve the needs of our members. In addition to the development of innovationrelated products and services, we feel it’s critical to invest in providers of emerging technologies and industry disruptors.”
“As we near the next decade, it’s not the perceived threat of disruptors or insurtech that are the biggest challenges to independent agents. It’s the industry’s continued consolidation of both agencies and carriers that is creating the largest risk moving forward. These consolidations are creating increasingly competitive environments, which make it difficult for smaller independent agents to survive. Using technology, open data access and data analytics, larger corporations can maximize their operations to prevent their size from burdening their growth. Smaller agents must leverage these same technologies to secure their future in 2019 and beyond.”
“In 2019, general increases across many lines of business can be expected, as the global economy remains robust, despite trade tensions. The biggest challenge in 2019 will be understanding that in an ever-developing, technologically driven world, risks are taking on new shapes and more complicated forms. For example, automotive vehicles are safer, and yet auto rates will continue to rise because of how expensive new vehicle accidents are due to the advanced technology contained within the car. In addition, in a data collection environment enabled by evolving tech nologies, cyber risks continue to rise, making cyber insurance more paramount.”
Chairman, president and CEO Gallagher
LOOKING TO THE FUTURE Insurance companies not already grappling with cutting-edge technology should prepare to get up to speed in 2019. According to Insurance Nexus project director Ira Sopic, “A firm idea of what artificial intelligence is and its relevance is now non-negotiable for anyone who considers themselves a market contender in insurance.” Meanwhile, the major natural disasters that marked the latter half of 2018 – including Hurricanes Florence and Michael, which inflicted a combined $31 billion in damage, along with the 30 wildfires that tore through California – will undoubtedly have an impact on the industry in the new year.
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22/11/2018 11:00:03 PM