2018 Predictions: Five things that will influence the future shape of the insurance technology landscape

At this time of year, it’s customary for firms like ours to take a look at what 2018 may hold for our industry.

As we have said already this year, both proposition and technology-wise, things appear to be in a state of flux. Distribution remains the largest battleground in many markets globally with players from within and outside the industry vying for position. Propositions are starting to change with the emergence of external data and artificial intelligence (AI) helping to make smarter decisions and smooth the customer engagement process. New innovations and tests of the incumbent model come from both mature and emerging markets. However, it is still a more difficult space to call, with questions like “When will the Internet of Things (IoT) in the home, health, or a commercial segment really take off?” and “When will blockchain change insurance ,and how?” being asked.

Meanwhile, the macro-environment remains challenging. Historic low interest rates and changing demographic patterns continue to apply pressure on both costs and product relevance. Outside of a few growth areas (such as in developing markets and digital risks), making a decent return for investors is simply not the "walk in the park" it perhaps once was.

So, what does this all mean for 2018? Here are our top five technology-led predictions that we expect to take hold in 2018 and then continue to develop over the next few years.