Insurance 2020: innovating beyond old models

Dramatically different products, services and business processes will emerge in the insurance industry in response to changes in demographics, technology and information over the next 15 years.

by World Business
Last Updated: 23 Jul 2013

There will be entirely new policies such as 'just-in-time' insurance, where each step of a journey, such as car-to-train station, train-to-city, station-to-office, will be risk-rated separately. Policyholders will trade location and time of day privacy data for lower insurance bills and there will be real-time calculation of risks and a running premium tally.

Insurers will also pursue active risk management to reduce claims and costs by emphasising preventative actions. Policyholders could be relayed convenient information; for example, advice to avoid an overloaded road.

The study, based on interviews with global insurance industry executives, forecasts a need for growing innovation as technology lowers barriers to entry, leads to growing numbers of niche players and creates more active, informed consumers who will demand more and who will reward non-traditional operators. 

Insurance 2020: innovating beyond old models
James Bisker
IBM Institute for Business Value, 22 May 2006

Review by Steve Lodge

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