February 2, 2017 by Canadian Underwriter
The global insurance services market is expected to grow at a compound annual growth rate (CAGR) of 4.9% over the next five years due to the increase in the use of the Internet of Things (IoT) and changes in operating models adopted such as the emergence of peer-to-peer and on-demand insurance models, according to a new report.
Global technology research and advisory company Technavio released Global Insurance Services: Procurement Intelligence Report 2017-2021 on Thursday. The research report provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at “helping organizations achieve superior business performance,” Technavio said in a press release. The report also provides insights on pricing, supplier positioning and “top” companies.
The report noted that insurers utilize IoT in the form of vehicle telematics, connected home technologies (such as smart security systems, switches, and other devices) and wearables, which collect information about physical activities of wearers. Insurers also automate various office functions using artificial intelligence. “Recent developments in the industry involve the use of robo-advisors or chatbots to resolve customer queries,” the report noted.
Other trends discussed in the report: