IDC FutureScape: Worldwide Insurance 2023 Predictions

IDC FutureScape Figure

• Figure: IDC FutureScape: Worldwide Insurance 2023 Top 10 Predictions

Executive Summary

IDC FutureScape Predictions

• Summary of External Drivers

• Predictions: Impact on Technology Buyers

• Prediction 1: By the end of 2023, global travel insurance providers that will modernize their offerings with parametric capabilities will experience a 10% surge in GWP and a 15% surge in overall NPS

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 2: By 2023, 80% of tier 1 and 60% of tier 2 global P&C insurers will halve the underwriting turnaround by resorting to modern intelligent workbench applications

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 3: By 2024, 60% of commercial line insurers will launch on-demand products for the gig economy by investing in AI to handle the complexity, diversity, and unpredictability of gig worker risks

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 4: By 2024, 60% of insurers building functionally driven open-connected insurance ecosystems will put in place stringent mechanisms to meet evolving regulatory & resilience mandates

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 5: By 2024, a 35% YoY increase in demand for cyber-insurance policies will push toward stronger resilience by adopting ecosystem-led cyber securities services, placing prevention at the core

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 6: By 2025, gamification techniques such as customer incentives & rewards for choosing self-directed customer assistance approaches will lead to a 30% drop in policy administration costs

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 7: By 2025, 70% of FNOL calls will be automatically routed with voice-enabled digital assistants, improving the speed of settlements and claims handlers' productivity

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 8: By 2026, powered by DLT, reinsurers will save up to $10 billion in operational efficiency by eliminating reconciliation pain points, boosting transparency, and bringing complete contract certainty

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 9: By 2027, 60% of global insurers will strategize their market approach for B2B data monetization, predominantly on a transactional basis, by building on cloud computing, IoT, and AI investments

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 10: By 2028, more than 20% of the current insurance business will migrate to embedded distribution, resulting in a more profitable and cost-effective customer acquisition model

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

Advice for Technology Buyers

External Drivers: Detail

• Storms of Disruption — Accelerating, Interconnected Uncertainty

• Geopolitical Reality — Sovereignty in the Digital World

• Cybersecurity and Risk — Scaling and Evolving Threat Environment

• Global Supply Shock — Refocusing on Multisource and Resilience

• Digital Business — Stepping Stone to the Future Enterprise

• Meaningful Intelligence — Differentiated Decision Power

• Ecosystem-Based Innovation — Driving Enterprise Value

• Work Mode Upheaval — New Models and Leadership

• Everything as a Service — Thriving Through the Change

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