The insurance industry is at a crossroads and faces perhaps its most significant strategic decision in decades. The rapid rise of big data, algorithms and artificial intelligence (AI) to analyze, process, underwrite and pay claims will provide incumbent insurance firms with the means to synchronize with evolving digital customer needs over the next five to ten years.
Of course, the stakes are high. Insurers that fail to embrace a digital mindset risk missing out on the $1.6 trillion of value that next-generation insurance is set to create in the next three years. To better understand this expected realty, we conducted a thorough review of the latest trends, competitive threats, promising opportunities and best ways for insurance executives to prepare a favorable response.