Here are seven Predictions for 2022, by Michal Trochimczuk, Managing Partner at Sollers EU;
1. Premium growth: business will grow more slowly than expected due to increased competition in personal lines and life insurance suffering from the scenario of low interest rates and high inflation. Insurers are forced to focus on higher operational efficiency.
2. Natural catastrophes: There is a trend of increasing natural catastrophe exposure, which is likely to continue. The industry will have to re-evaluate its risk management.
3. Claims management: pioneering insurers will exhaust their investments in modernized claims systems and invest more in artificial intelligence, which will help them better understand claims patterns and optimize the process.
4. Cloud: the shift towards the cloud will increase sharply as many companies follow suit.
5. Lloyds and the London Market I: Insurance in the City will see a year of operational success as companies and the market actively modernize their systems and APIs. There is great potential for further efficiencies once the operating model (TOM) for the market is defined and the supporting systems are implemented.
6. Lloyds and the London Market II: Current optimism in business terms will be followed by disappointment as the economic recovery is slower than expected. Rate increases in the commercial sector have attracted new market participants. This will have an impact on pricing. Here, too, insurers will strive for greater efficiency.
7. Motor insurance: with margins shrinking, digital motor insurance is on its way to becoming a new standard. The shift towards digital motor insurance is accelerating as car manufacturers use their digital platforms to provide value-added services for the vehicles they sell.