Christmas is fast approaching, which means December is the month of industry Predictions features. May we make merry and present you with a few insights from Forrester;
Insurers will strive to bolster their ESG credentials and reevaluate cyber products amidst growing threats. Insurtechs will continue to drive innovation and we expect funding for digital insurance platforms will increase robustly as transformation in the industry extends across the value chain. In 2022:
· Insurers will try to outcompete each other on ESG credentials. On the back of the UN Climate Change Conference (COP26) and strong pressure from investors, insurers will incorporate ESG factors into risk management and underwriting more than ever.
· One-third of insurers will embed insurance. In 2021, 54% of insurers invested in digital channels to differentiate, but only 17% believe partnering with other organizations is a differentiator. In 2022 we see a third of insurers increasing their willingness to embed products within others’ ecosystems to extend their product distribution.
· A ransomware attack will hit a major financial market, forcing a cyber insurer exit. Cyber attacks are a huge risk for insurers. At least one top 10 cyber carrier will cease writing new business and selectively run off existing business in 2022.
· Digital insurance platforms will raise $20 billion. Ongoing digital disruption is prompting insurance companies to embrace digital platforms for delivering enhanced services. In 2022, funding will be its strongest yet.
Every year, Forrester publishes predictions reports to look at what might come to pass in the year ahead. Forrester’s Predictions reports analyze the dynamics and trends in different disciplines and industries, including technology and innovation, customer experience (CX), employee experience (EX), and B2C and B2B marketing. We intentionally make bold calls to push the limits and challenge the market rather than state obvious trends that are already in the works. To hold ourselves accountable and be fully transparent, we score our predictions at the end of each year to see where we hit the mark and where we didn’t as markets dynamics can change.
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