Manan Sagar, CEO of Gallagher Bassett UK, has a wealth of experience and a strong background in leveraging technology to enhance insurance operations. In this three- part series Manan shares his insights on current trends and threats impacting insurers, the role of AI in improving the customer journey and finally, highlights the emerging tech tools that excite him, and how GB is investing to help their customers stay ahead.
Part One:
Manan Sagar, CEO of Gallagher Bassett UK, joined the team in February of this year and is committed to driving superior outcomes for GB’s clients and customers. Below, Manan discusses the industry trends and threats that are shaping the industry.
Q: What are some of the current industry trends that you think are impacting clients and insurers the most?
There are several current trends in the insurance industry that are significantly impacting both clients and insurers. These trends are reshaping the way insurance products are offered, how risks are assessed, and how claims are processed. Here are some of the most impactful trends:
1. Personalisation: Clients now expect personalised insurance solutions tailored to their specific needs. Insurers are leveraging data analytics and AI to gather insights on customer behaviour, preferences, and risk profiles. This allows insurers to offer customised policies, pricing, and coverage options, enhancing customer satisfaction and retention.
2. Usage-based insurance: With the advent of telematics and IoT (Internet of Things) devices, insurers can collect real-time data on client behaviour, such as driving habits or home security. This data enables insurers to offer usage-based insurance, where premiums are based on actual usage or behaviour. This trend promotes safer practices and rewards clients with lower premiums, while insurers gain more accurate risk assessment.
3. Seamless customer experience: Clients now expect seamless experiences throughout their insurance journey across voice, digital and in-person. Insurers are investing in user-friendly websites, mobile apps, and self-service portals to provide easy access to policy information, claims filing, and customer support. This trend improves customer satisfaction, reduces administrative burdens, and increases efficiency.
4. Cybersecurity: As technology advances, the risk of cyber threats and data breaches increases. Insurers are focusing on cybersecurity measures to protect sensitive customer information and prevent financial losses. Cyber insurance policies are also gaining popularity, providing coverage for cyber-related risks and helping clients recover from cyber incidents.
5. Attracting and retaining Talent: Technology and innovation are being utilised by companies to attract and retain talent in various ways. Firstly, advanced data analytics and artificial intelligence (AI) are being employed to augment employees by streamlining and automating processes, freeing up employees to focus on more strategic and value-added tasks. Additionally, insurance companies are embracing digital platforms and mobile applications to provide employees with easy access to training, development and hybrid working opportunities. This not only creates an innovation-focused work environment but also allows companies to tap into a wider pool of talent.
6. Climate change and natural disasters: The increasing frequency and severity of natural disasters due to climate change have a significant impact on insurers and clients. Insurers are adapting by developing new risk models, offering specialised coverage for climate-related risks, and promoting sustainable practices. Clients are seeking insurance solutions that address climate risks and provide adequate coverage for property damage or business interruption.
7. Regulatory changes: Regulatory frameworks are constantly evolving, impacting insurers and clients alike. Changes in regulations, such as data protection laws or consumer protection measures, require insurers to adapt their processes and policies. Clients benefit from increased transparency, data privacy, and fair treatment.
These trends are shaping the insurance industry, driving innovation, and transforming the way insurers interact with clients. Embracing these trends allows insurers to stay competitive, provide better customer experiences, and effectively manage risks.
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