Between mergers and politics, insurance took center stage in the 2016.
As we near the year’s end and begin preparing for the road ahead, it is clear that this spotlight on insurance will continue to shine in 2017.
Next year, the insurance market can expect even more challenges and opportunities, particularly in health care, all of which will greatly influence the way insurtech approaches consumer and business pain points.
Before ringing in the New Year, we’ve looked ahead to the top 3 insurtech trends to expect in 2017.
No. 1: Year of the Smart Shopper
Consumers today are more empowered than ever before. New technologies give consumers access to an unlimited supply of shopping information, and many are discovering creative ways of interacting with retailers. Today, 8 out of every 10 shoppers’ purchasing decisions around the world are informed by a digital device, indicating that consumers are searching beyond traditional means to be more informed.
In 2017, we will see this trend transcend industries, primarily in health care, an industry that has been moving toward a consumer-centric model of decision-making and a retail-oriented way of doing business. This is especially true in the world of health insurance, as consumer expectations of their health plan providers have changed. Consumers are beginning to realize that they can expect the same level of satisfaction and responsiveness in insurance that they could out of any other industry. As a result, insurance consumers will continue to shop around until their demands are met.
No. 2: Rise of digital insurance technologies
Digital technologies will have an outsized impact on the health insurance industry in 2017. The shift to a hyper-competitive marketplace means that all insurance stakeholders must improve the consumer’s digital experience to keep consumers coming back to their services. In health insurance, simple and modern technologies that make the complicated process of selecting coverage transparent, trustworthy and efficient will dominate the marketplace next year.
Innovative companies that develop integrated digital capabilities will open up access to a large subset of consumers, particularly millennials and young consumers who rely heavily on online and social tools to make purchasing decisions. Sixty-eight percent of millennials actively seek a shopping experience that is integrated and seamless, regardless of the channel. Engaging digital experiences are no longer the exception; they are the norm.