IDC FutureScape: Worldwide Insurance 2024 Predictions

IDC FutureScape Figure

• Figure: IDC FutureScape: Worldwide Insurance 2024 Predictions

Executive Summary

IDC FutureScape Predictions

• Summary of External Drivers

• Predictions: Impact on Technology Buyers

• Prediction 1: By 2024, 33% of insurers will increase investments in external app development services, positively impacting digital monetization models and increasing the share of digital revenues by 15%.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 2: By 2024, embedded payments in P&C insurance will cut operational costs by 25% and streamline payments collection and reconciliation for policy bounding, renewals, and claims settlement.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 3: By 2025, insurtech market consolidation drives outcome-based pricing adoption by 60% of tier 1 and 50% of tier 2 global insurers, enhancing value-driven partnerships and efficiency.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 4: By 2025, bridging the silver economy protection gap will lead 60% of worldwide health insurers to collaborate with telehealth providers, offering wider access to personalized and preventative care.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 5: By 2026, as public cloud is given priority for modernizing agent-producer relationship systems, 35% of insurers will adopt sovereign solutions to foster regulatory compliance.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 6: By 2027, due to AI regulations, 60% of AI algorithms adopted by insurers along the policyholder value chain will leverage synthetic data, to ensure system fairness and regulatory compliance.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 7: By 2027, climate risk modeling tools will enable reinsurers to improve NatCat risk exposure estimation accuracy by 50%, resulting in a reduction of NatCat loss ratio via risk-adjusted pricing.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 8: By 2027, GenAI-based advisor enablement tools will lead to a 15% spike in distribution sales volume and a 20% boost in sales ROI by delivering personalized and empathetic engagement at scale.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 9: By 2028, 60% of auto insurers will spend 30% more on trusted data exchange technologies, to become preferred partners of OEMs bundling insurance, increasing auto coverage revenues and IP monetization.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 10: By 2029, 80% of auto insurers adopting claims process digital twins will prioritize accident recreation underlying capabilities to reduce 40% of casualty claims adjustment expenses and fraud losses.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

Advice for Technology Buyers

External Drivers: Detail

• AI Everywhere — Generative AI Takes the Spotlight

• Economic Uncertainty — IT Malaise and Market Volatility

• Cybersecurity and Risk — Building Resilience Against Multiplying Threats

• The Digital Business Imperative — Competitiveness and Outcomes

• Everything as a Service Intensifies — Transforming Models to Drive Change

• Dynamic Work and Skills Requirements — New Work Mode Era

• Shifting Tech Regulatory Landscape — Navigating Risk and Opportunity

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