As we move into 2018, the only thing that is certain is the level of uncertainty about where we will be at the end of 2018! Recent trends in the insurance industry which have challenged Insurers in 2017 will continue to dominate, but with a fresh set arriving, predominantly surrounding the forthcoming uncertainty facing organisations with Brexit and continued Regulatory initiatives including GDPR.
The IoT and Connected homes, autonomous devices and the rising threat of Cyber Attacks are transforming the way people engage with Insurers and their products. Therefore, insurers will need to continue to adopt new technologies in order to identify opportunities as well as challenges. What will be the challenges facing the insurance industry in 2018?
Economic outlook: Uncertainty will impact insurer growth prospects in 2018
The UK economy is heading into unknown territory. 2016 saw Britain voting to leave the EU, bringing to the forefront an array of challenges and highlighting key considerations for insurance providers, many of which were heightened further with the announcement of GDPR set to be implemented in May 2018.
The challenges for insurers include:
No one knows where this will end up or what the macro societal effect will be. Furthermore, there are legislative challenges of passing European laws into British law. Uncertainty can breed fear and the economy’s ability to grow may be impaired.
- Low but rising interest rates
This is a hard one for Insurers on our list of insurance industry challenges– higher interest rates will slow spending, but these will allow increased flexibility in commercial and margin calculations as well.