The Future of Insurance: Trufla’s Predictions and Insights
The insurance landscape is continuing to shift to a state where modern technology, customer-centric approaches, and adaptability will be the key drivers of success in the insurance brokerage space. Below we delve into the top trends Trufla sees for 2024.
Major Trends to Impact Brokerages in 2024 and Beyond
“2024 is going to be the year the trajectory begins to change for technology,” Trufla’s CEO Sherif Gemayel stated. This was an intriguing message from industry veteran Gemayel, when he spoke about the future predictions of the insurance space.
Here are the highlights:
1. Adopting New Tech to Power Growth
Despite continued growth in the sector, rising interest rates have put unrelenting pressure on brokerages’ valuations, sparking a need for an avenue for growth in 2024 and beyond. Adopting new technology, while not a new s`trategy, is becoming essential for brokerages to survive in this economy. As brokerages navigate this dynamic environment, they must increasingly leverage cutting-edge tools and digital solutions to enhance operational efficiency, client engagement, and overall competitiveness.
2. The Emergence of AI in Insurance
“Brokers using AI will replace brokers Not using AI,” says Jeff Roy, CEO of Excalibur Insurance. Roy’s comments signal a need for brokerages to jump on the AI bandwagon, or risk getting lost in the dust. It’s not a surprise that AI intelligence can help a brokerage in many different areas, including ratings, E&O coverage, retention, and client segmentation. Specifically, excelling at client segmentation is going to be imperative for brokerages to remain competitive. The better you can segment, the better you’ll be able to grow and survive. Any kind of AI intelligence used to power distribution is going to be crucial in the coming years, especially considering any regulatory changes (e.g., auto cap in Alberta) or if the global hard market continues.
3. Big Data
Central to the future trends is the accelerating integration of Big Data, presenting insurance brokerages with unprecedented opportunities to optimize operations, and enhance decision-making processes. The integration of Big Data also extends beyond internal operations, influencing customer interactions and experiences. Brokers can leverage data-driven insights to offer personalized services, anticipate client needs, and enhance customer satisfaction. This strategic use of Big Data not only fosters client loyalty but also positions brokerages as forward-thinking industry leaders in a competitive market.
4. Embedded Insurance
Embedded insurance is a trend that is starting to heat up as carriers enter the driver-tracking space. Car manufacturers are selling vehicles with embedded insurance, making it easier for customers to choose an insurance policy on-the-go, while insurers reap the benefits. If you purchase a GM or Tesla car via OnStar, for example, your car insurance is automatically added to your bill before you leave the car lot. This trend threatens brokerages’ growth potential and is a further indication that brokerages must keep pace with updated tech products that can help them carve their own path to profitability. However, there is also an opportunity for brokerages to explore partnerships with these emerging players, collaborating to provide specialized insurance products or leveraging digital platforms for distribution.
Get on Board the Tech and AI Train: A Brokerage’s Survival Plan
There will be a tipping point where more and more brokers will be affected by advances in technology. Meaning, brokers can either adopt new technology and thrive now, or risk lagging the industry pace. For a brokerage, it’s becoming more expensive to go through acquisitions than it is to gain efficiency and grow organically by adopting new technology. Change happens fast in the competitive insurance space, where you must act fast to survive.
At Trufla, we help brokerages prosper in the ever-changing economic climate, where AI and tech are the harbingers of a brokerage’s success or failure.
Are you interested in reading more about Trufla’s insuretech tools to boost your brokerage’s growth? Find out more about our data and AI-centered products or contact us for a demo of our 2023 products and what’s coming for 2024.