Usage-based insurance (UBI) products appeal to consumers who prefer customized services, and their success is attracting droves of new entrants to the UBI arena.
Spurred by shifts in customer expectations, incumbents will race to personalize services and enhance distribution strategies. Fintechs will focus their attention on tapping opportunities that first emerged in 2021.
Although the benefits of 5G for financial services firms are less flashy than in other industries, lower latency, faster speed, and improved reliability will play a big role in the financial services sector.
Global insurers have been rocked by large, unexpected payouts and falling revenues amid the coronavirus pandemic. Yet, P&C and life insurers in leading markets will still increase their tech spend and accelerate their digital transformations in the next several years to enhance the online user experience.
Incumbent insurers have accelerated their use of mature AI deployments in the past year to meet changing customer expectations and better compete with insurtechs. They’ll now need to infuse the tech across their business segments to unlock the full potential—including enhanced personalization, cost cutting, and stronger risk management—of AI-driven digital transformation.