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retirement

75% of People Not on Track for Retirement

A new study shows that three in four Canadians are not on track for retirement. With the recent economic turmoil, many working Canadians are struggling to make ends meet as it is. The same survey indicated that half the population is living paycheck to paycheck, and very few have any emergency savings built up. Living in the moment means that they’re not focused on retirement goals, and many expect to be working several more years as a result.

Although workplace pensions, the Guaranteed Income Supplement (GIS), Old Age Security (OAS) and the Canada Pension Plan (CPP) can provide funds, it’s often not enough. Moreover, the higher your income is now, the less likely you are to have your future needs met by these types of programs. If you’re among the 75% who are not on track to retire, here are the changes you need to make now:

Take a Hard Look at the Money Coming In

You’ll need to set a budget, but long before you get to it you must have a full accounting of how much money is coming into the household. Then, you’ll need to deduct between 20% and 30% of the gross for emergency expenses and retirement. Focus on building emergency savings that will cover you for three to six months first.

Eliminate Bad Debts

Carrying a balance for a mortgage or vehicle isn’t usually a problem, but more and more Canadians are maxing out credit cards and racking up other smaller debts. These things should also be knocked out of the way first.

Say Goodbye to Luxury Spending

While the older population is much better at assessing value and affordability, the younger generation is geared toward luxury items. Expensive cars, lavish clothing and trending technology add to debt. If you aren’t on track for retirement, and you’re carrying unnecessary debts, you should get yourself back on track and only purchase essential and value-oriented products.

Reevaluate Your Investment Choices

Unfortunately, many investment firms take a chunk of payments, and they fail to deliver in returns. Do a cost-benefit analysis and see if you need to consider moving your money to another firm or program. Diversification, both on a local and international level, is essential, as it provides a kind of insurance in case the economy falters. Think beyond stocks, as well. Bonds, commodities and real estate holdings can provide extra layers of security.

Use a Budgeting Program

There are numerous options available, but they all serve the same essential function. Using software or an app to track expenses takes the brainwork out of it and enables you to stick to your budget without having to work so hard.

Incrementally Increase Retirement Savings

As you pay off your debts and eliminate your mortgage, and your children become self-sufficient, you’ll obviously have more money to spend on yourself. Many people jump into doing the things they’ve been holding off on, like vacations and home remodels, but this becomes a slippery slope. As you find yourself free of expenses and debts, it’s imperative to increase your retirement savings, as well. During your last decade or two of work, your goal should be buildings toward setting aside 60% of your income for retirement. Some of the cash should go into savings, but a fair amount should be invested into dividend-paying stocks, which will add a steady trickle of supplemental cash as your non-working days progress.

Reevaluate Your Goals and Get Expert Advice

Even though most people can benefit from visiting with a financial planner, very few people do. You don’t have to be wealthy to benefit from one, either. A financial planner can help you figure out ways to minimize debts and how to save and may be able to help you get lower interest rates on the debts you already carry. If you choose not to visit a financial planner, you should still reevaluate your budget and strategy on a regular basis. This way, you can find ways to increase your savings if you aren’t setting aside enough, or enjoy more of your income now, provided you’re on track for retirement.

There was a time when a person could outright retire at a certain age, but it’s not like that any more. Today’s workers have to contribute more on their own to be able to maintain the same standard of living, and they have to work longer to be prepared. It’s still possible to retire at about the age your parents and grandparents did, but it requires more planning on your part.

Innovation Trends in 2016

For the past few years, the innovation rate in the global insurance industry has run at peak levels, in good part because of digitization, which continues to be a pervasive influence—if not as disruptive as early projections.

Initial expectations of a departure from traditional distribution channels turned out not to be the case. Clients preferred direct, personal contact when buying insurance products. While online channels have not generated major changes—for example, in the vehicle insurance sector in Italy (5% of premiums today are generated online, compared with 1% in 2012) —telematics has had a substantial impact. It represents 15% of all insurance policies today in Italy. (These policies did not exist in 2002.)

Digital transformation is, of course, leaving its mark in four macro areas.

First, consumer expectationsA Bain survey suggests that more than three out of four consumers expect to use a digital channel for insurance interactions.

Second, product flexibility: The traditional Japanese player, Tokio Marine, for example, started offering temporary insurance policies via mobile phone, e.g., travel insurance limited to the dates of travel and personal accident coverage for people playing sports.

Third, ecosystems: They are created when the insurance value proposition depends on collaboration with partners from other sectors. For example, when Mojio sells a dongle (at, say, a supermarket) that requires connection to an open-source platform to be installed in a car, third-party suppliers are able to extract driving data from that platform and create services based on it. Onsurance, for one, offers tailor-made insurance coverage based on the data collected.

Fourth, services: Insurers today are moving away from the traditional approach of covering risks to a more comprehensive insurance plan, which includes additional services.

Connected insurance: a telematics “observatory” to promote excellence 

The fact that the Italian insurance market represents the best of international automotive telematics practices gave rise to the idea of creating an “observatory” to help generate and promote innovation in the insurance sector. Bain, AniaAiba and more than 25 other insurance groups are among its current participants.

The observatory has three main objectives: to represent the cutting edge of global innovation; to offer a strategic vision for major innovation initiatives while reinforcing the Italian excellence paradigm; and to stimulate research and debate concerning emerging insurance issues such as privacy and cyber risk.

The Observatory on Telematics Connected Insurance & Innovation, will focus not only on vehicle insurance (where Italy has the highest penetration and the most advanced approach worldwide), but on additional important insurance markets related to home, health and industrial risk, which, I am convinced, represent the next innovation wave.

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Italy is currently the best practice leader in connected insurance. Italian expertise in vehicle telematics is finding applications in other insurance areas, particularly in home insurance—where Italy is the pioneer—and in the health sector, where we recently launched our first products.

InsurTech on the rise

Another sector that has seen an increased number of investments in 2016 is InsurTech. Until last year, attention focused on many types of financial service start-ups. Today there is significant growth in investments in insurance start-ups: almost $2.5 billion invested in the first nine months of 2015, compared with $0.7 billion in 2014 [according to CB Insight]. Many new firms are entering the sector, bringing innovation to various areas of the insurance value chain. The challenge for traditional insurers will be to identify firms worth investing in, and also to create the means for working with those new players.

The challenge is integration

Ultimately, the main challenge for insurers will be to find ways to integrate the start-ups into their value chains. The integration of user experience and data sources will be key to delivering an efficient value proposition: It is untenable to have dozens of specialized partners with different apps in addition to the insurer’s main policy. It will be necessary to manage the expansion and fragmentation of the new insurance value chain.

To come up with an answer to this problem, start-ups are generating innovative collaborative paradigms. One example is DigitalTech International, which offers companies a white-label platform that integrates various company apps and those of third-party suppliers into a single mobile front end, even as it offers a system for consolidating diverse client ecosystems (domotics, wearables, connected cars) into a single  data repository.

Integrating and managing complex emerging ecosystems will be one of the greatest challenges in dealing with the Internet of Things (IoT) for the insurance industry.

(A version of this article first appeared on Insurance Review.)

P2P Start-Ups From Around the World

Before the advent of underwriting in London’s coffee houses in the 1600s, civilizations used various mechanisms to provide financial protection within their communities. For example, in the Middle Ages, tradesmen learned their skills through apprenticeships in the guild system. These guilds collected fees, and the wealthier guilds used these fees as a kind of insurance safety net.

If a member of the guild was robbed, if his house burned down or if he died, the guild used money from the safety net to rebuild the house, support the family or settle any financial obligations.

The world of insurance has changed a lot since those times, but the fundamental definition of insurance as “the mutuality in the sharing of losses” hasn’t.

Which brings us to emergence of the new generation of peer-to-peer (P2P) insurance firms. These InsurTech start-ups want to address the conflict between the insured and insurer, because the insurer is betting that the insured won’t make a claim, while the insured is betting he will. The P2P InsurTechs also want to address human behavior and moral hazard.

P2P insurance protagonists around the world

Friendsurance – Germany

The pioneer of P2P insurance in 2010, Friendsurance pools its users into small groups and gives its customers a cash-back bonus at the end of each year if they remain claim-less. Friendsurance operates as an independent broker in Germany. See here for an interview with CEO and founder Tim Kunde.

Lemonade – U.S.

Claiming to be the “world’s first P2P insurance carrier,” little is known about Lemonade other than that it is coming soon. The company hit the press when it was reported it had raised a massive $13 million in seed funding (a strong indication where the puck is heading).

Inspeer – France

Here, customers form friend-and-family groups to share the deductible (aka excess) element of a claim. This enables high deductibles, thereby reducing premiums from the insurance carrier. The group shares the benefit of lower premiums and provides each other with financial cover for the higher deductible if there is a claim.

PeerCover – New Zealand

This is a friend-and-family savings scheme to provide financial cover for deductibles in the event of a claim. Like Inspeer, the higher deductibles result in lower premiums for everyone in the group. However, unlike Inspeer, in the event of a claim, members get as much as three times their initial contribution back to cover their excess.

Guevara – UK, TongJuBao – China

For Guevara and TongJuBao, I spoke with the founders to find out more about how P2P insurance works and why it is different from traditional insurance. The two companies have two very contrasting stories.

I’ll start in China—or Shanghai and Hong Kong, to be precise. Recently, I skyped with Tang Loaec, founder of the Community Risk Sharing platform, TongJuBao (aka P2Pprotect).

Tang is on his third financial business launch after a career in banking and risk management. In his spare time, he writes fiction books!

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Like most involved with InsurTech start-ups, Tang wants to disrupt insurance.

Tang explained, “We all want protection, but nobody loves insurance. And our insurance providers have not done a good job. In China, customer satisfaction is low at around 19%. Something needs to be done.

“People think the process is unfair. Consumers pay premiums regularly and on time, but, when it comes to the claim, insurers often delay and deny the amount to be paid out. This just leads to a breakdown of trust.”

Often, an InsurTech startup builds a business model that relies on a traditional underlying insurance business model. Tang aims to build a P2P insurance model that is more than a social group sharing each other’s exposure to deductibles. TongJuBao, like Guevara and the recently announced Lemonade, plans to go further and completely redefine the end-to-end insurance model.

This is not just a distribution play built on some social novelty factor. This is the start of a new wave of insurance business!

With TongJuBao, there is no underlying insurance carrier. Its model separates the underwriting process from the claims process, thereby removing any conflict of interest. First, TongJuBao creates social communities or groups that customers join. The company then creates a deposit account for every member.

All members pay two sums of money into their deposit accounts. One is the fee for administration. The other is, effectively, a guarantee deposit to cover the risk being insured. All members pay the same amount into the deposit account to buy units of protection — in other words, if one unit provides £10,000 of cover, and I want £50,000 of cover, I buy five units.

Tang explained that his first-year focus is on launching a range of social risk products into the Chinese market:

– Marriage cover is typically not insurable because divorce is a human-based, not event-based, decision. TongJuBao’s product will launch with a flat-rate premium and a short-term, no-claims period (to guard against early payout on someone buying, marrying, divorcing and claiming in a very short period). Effectively, this is selling an insurance product as an alternative to a pre-nup.

There is a similar product in the U.S. market from Safeguard Guaranty, which claims to offer the “world’s first divorce probability calculator.”

– In China, child abduction is a massive social problem (see this report from the Guardian). Nobody knows the true scale of the issue, but it has been a problem since the 1980s and is possibly an unintended consequence of the “one child” policy.

TongJuBao’s policy will provide immediate support to the family through an agency that will offer emotional support as well as initiate search-and-rescue activity in the critical early hours after abduction.

How does TongJuBao work?

Tang explained, “The members of each community pay premiums into a large pot, and then members draw on the pot when they claim. Essentially, everyone in the community signs a contract with everyone else. The members all share the risk and reward.“

This is a mutualization model, but there is a capital limitation with this model, so all payouts are restricted to a capped amount. In many ways, you could look at the TongJuBao model as a marketplace more than as an insurance carrier. However, unlike the Uvamo model, members are not speculative investors looking to get a return on an investment.

As for regulation, TongJuBao operates under a civil law contract and not as a regulated insurance business. This is the model that has been working for P2P lending over the past eight years, and Tang expects it to work just as well for P2P insurance.

Can this business model scale?

Tang believes he can get the same rates of growth in protection as the ones China has seen in lending. He told me, “The model will scale. Just look at P2P lending in China, which has scaled to over 2,000 platforms and [where] total volume of lending is four times more than [the] rest of the world put together! And how did this happen? Because, in China, banks were not meeting customer needs. It’s the same story for insurance; they are not serving customer needs.”

In many ways, TongJuBao’s business model takes us back to the roots of insurance. Way back in 1696, Hand in Hand Fire & Life Insurance,  the predecessor to Aviva, the UK’s largest insurer, was created to provide everyone in the community with protection in the event of a fire. Members paid a subscription, and Hand in Hand owned its own fire brigade. Everyone in the community enjoyed the collective support of all the other members in the event of a fire.

Moral hazard

A common theme when talking to InsurTech firms is “the moral hazard.” The long form definition of moral hazard can be found here, on Wikipedia. In the modern context, the term is used to define the actions and choices of the protected party when it doesn’t carry the financial consequences of those actions. If an insured party knows it is protected financially should it crash a car or drop an iPhone in the street, does it act with the same level of precaution as it would without any financial cover? And why should it? That’s what the insured party has bought insurance cover for, isn’t it?

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(Source: http://www.lifetonic.co.uk/articles/moral-hazard)

Leaving personal responsibility and the moral dimension of this debate to one side, the fact is that a riskier attitude ultimately leads to higher premiums for everyone.

This is why P2P insurance offers the potential for lower-cost insurance. By having you join groups or communities you have an affinity with—whether family, friends or people with common interests—the business model relies on a socially responsible attitude to risk-taking, as well as a financial one.

If the insured knows the deductible is going to be funded by family members, is she less likely to make an exaggerated claim, especially when she is also taking the deductible from her own pocket?Guevara_Logo_black

Hanging out with Guevara 

One sign of success appears when your name is regularly dropped as a pioneer in your field, which was the case when Guevara and Friendsurance were prominently named when the story about Lemonade hit the press

So, it was my absolute pleasure to spend time with three of the four founders of Guevara at their London headquarters—Paul AndersonRich Philip and Mike Greer. (The fourth founder is Kim Miller.)

Anyone who spends time in the investor community, especially during early-stage investing, will tell you it’s all about the team. And there’s no better example than the team at Guevara, with a wide range of backgrounds, skill sets and experiences.

Everything about Guevara is incredibly professional, from the cool branding and young Turks’ positioning to the grey-haired underwriting and pricing experience in the back office.

Formed in 2013, Guevara started offering motor insurance in late 2014. As the founders explained the origins of this digital insurance business, they relayed their personal experiences in buying insurance, from paying high premiums to having no idea with whom they were insured.

The best story came from Anderson, who is from Australia. When he first came to the UK, he bought car insurance based on having an Australian driver’s license. It cost him £1,000.

Close to renewal time, his insurance provider reminded him that his Australian driver’s license was only valid for a year and that he needed to switch to a UK one. However, there was an unintended consequence of swapping. He was recategorized as a new/inexperienced driver of less than a year! His premium shot up to £4,000. Same driver, same car, same location.

Sadly, this is an all-too-real illustration of how motor insurance works today and why there is real market opportunity for a new approach.

‘Old insurance is rubbish’

Guevara offers a standard motor insurance policy that is underwritten using traditional rating factors (ABI rating, driver history, location). The premiums are competitive, although drivers are unlikely to find Guevara on the aggregator sites.

This is because Guevara is different. Here’s why.

New customers are offered a choice of groups to join. Their base price (which is what Guevara calls the premium) is split in two, with one portion going into the individual group (called the protection pool) and the rest going into a single pot that supports all of the groups (called the insurance fees).

The amount of the split is anything up to 50% and depends on the number of members in the group. For groups of fewer than 10, the pool contribution is 20%, with 80% going into insurance fees. But when groups get to be larger than 100 members, the base price is split 50-50 between the two pots.

Claims are first paid from the money collected in the protection pool associated with each group until it runs out (or doesn’t, in which case there is a surplus). In the event that the protection pool runs out, claims are covered out of the collective pot (insurance fees). And in the event that the collective pot runs out—i.e. the combined ratio exceeds 100%—Guevara is reinsured by a traditional carrier.

The key here is that any surplus is redistributed back to the members. At renewal time, all money in the protection pool stays where it is, and the renewal premium is discounted accordingly.

The model works so that members can achieve 100% discount on their protection pot contribution and only pay the insurance fees element if everyone in their group does not make a claim. For larger groups, this is 50% of the originally quoted motor premium.

To affinity and beyond!

What makes Guevara work is affinity. Having an association with the group is really important, because this model relies on keeping claims expenses down. Even if there has been an accident and a claim needs to be made, the member has direct incentives to minimize the claims expense.

Guevara screen

For example, following an incident, how frequently does the insured go and arrange a hire car instead of letting the insurer do it at a much lower expense? If the Guevara customer knows that a claim will directly affect friends or family or will hurt its affinity group, the customer is more likely to only claim what is necessary.

What you see is what you get

Guevara also wants to tackle the continued complaint of customers is that there is no transparency with motor premiums — How are they calculated? Why do they vary so much from one insurer to another? Why do they go up from one year to the next?

Guevara not only lets customers make their own choices about the group they join but always lets them see who is in the group, how much money is in the protection pot, who is making a claim and, most importantly, how much is left in the pot at renewal time.

Philip, one of Guevara’s founders, said the company’s aim is to “encourage customers to engage and understand our insurance product. … Insurance is such a large proportion of household discretionary spending. By giving our customers accountability within their groups and making that transparent for everyone, we can reduce the cost of motor insurance for everyone.”

What next for Guevara?

For now, the team is totally focused on the UK motor market, but I can sense they won’t stop there. And this is more than a distribution play. Guevara is building a full-stack insurance model, and building an insurance business is no small feat. It takes time and a lot of capital to do that. Plus, there is the whole subject of regulation, which has to be embraced and fully adopted into the business model.

Guevara’s product is ultra-sticky because the upsides come at renewal time, just when buying decisions are being made. For Guevara to succeed, it has to show, over time, that it can deliver a better trust engagement, a change in driving behavior and, ultimately, lower, fairer premiums for group members (which is the goal for all the P2P InsurTechs I’ve listed).

Insurance evolution

Evolution-Of-Travel-Insurance1Jeff Bezos is credited with saying, “What is dangerous is not to evolve.” The traditional insurance model is not in good health, and this is creating the dynamic for change. The emergence of P2P insurance is evolution in action, even if it is taking us back to the roots of the industry!

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InsurTech Trends to Watch For in 2016

The excitement around technology’s potential to transform the insurance industry has grown to a fever pitch, as 2015 saw investors deploy more than $2.6 billion globally to insurance tech startups. I compiled six trends to look out for in 2016 in the insurance tech space.

The continued rise of insurance corporate venture arms

2015 saw the launch of corporate venture arms by insurers including AXA, MunichRe/Hartford Steam Boiler, Aviva and Transamerica. Aviva, for example, said it intends to commit nearly £20 million per year over the next five years to private tech investments. Not only do we expect the current crop of corporate VCs in the insurance industry to become more active, we also expect to see new active corporate VCs in the space as more insurance firms move from smaller-scale efforts — such as innovation labs, hackathons and accelerator partnerships — to formal venture investing arms.

Majority of insurance tech dealflow in U.S. moves beyond health coverage

Insurance tech funding soared in 2015 on the back of Q2’15 mega-rounds to online benefits software and health insurance brokerage Zenefits as well as online P&C insurance seller Zhong An. More importantly, year-over-year deal activity in the growing insurance tech space increased 45% and hit a multi-year quarterly high in Q4’15, which saw an average of 11 insurance tech startup financings per month.

In each of the past three years, more than half of all U.S.-based deal activity in the insurance tech space has gone to health insurance start-ups. However, 2015 saw non-health insurance tech start-ups nearly reach parity in terms of U.S. deal activity (49% to 51%). As early-stage U.S. investments move beyond health coverage to other lines including commercial, P&C and life (recent deals here include Lemonade, PolicyGenius, Ladder and Embroker), 2016 could see an about-face in U.S. deal share, with health deals in the minority.

Investments to just-in-time insurance start-ups grow

The on-demand economy has connected mobile users to services including food delivery, roadside assistance, laundry and house calls with the click of a button. While not new, the unbundling of an insurance policy into financial protection for specific risks, just-in-time delivery of coverage or micro-duration insurance has already attracted venture investments to mobile-first start-ups including Sure, Trov and Cuvva. Whether or not consumers ultimately want the engagement or interfaces these apps offer, the host of start-ups working in just-in-time insurance means one area is primed for investment growth in the insurance tech space.

Will insurers get serious about blockchain investments?

Thus far, insurance firms have largely pursued exploratory investments in blockchain and bitcoin startups. New York Life and Transamerica Ventures participated in a strategic investment with Digital Currency Group, gaining the ability to monitor the space through DCG’s portfolio of blockchain investments. More recently, Allianz France accepted Everledger, which uses blockchain as a diamond verification registry, into its latest accelerator class. As more insurers test blockchain technologies for possible applications, it will be interesting to monitor whether more insurance firms join the growing list of financial services giants investing in blockchain startups.

Fintech start-ups adding insurance applications

In an interview with Business Insider, SoFi CEO Mike Cagney said he believes there’s a lot more room for its origination platform to grow, adding,

“We’re looking at the entire landscape of financial services, like life insurance, for example.”

A day later, an article on European neobank Number26, which is backed by Peter Thiel’s Valar Ventures, mentioned the company would like to act as a fintech hub integrating other financial products, including insurance, into its app. We should expect to see more existing fintech start-ups in non-insurance verticals not only talk publicly but also execute strategic moves into insurance.

More cross-border blurring of insurance tech start-ups

Knip, a Swiss-based mobile insurance app backed by U.S. investors including QED and Route66, is currently hiring for U.S. expansion. Meanwhile, U.S. start-ups such as Trov are partnering and launching with insurers abroad. We can expect more start-ups in the U.S. to look abroad both for strategic investment and partnerships, and for insurance tech start-ups with traction internationally to expand to the U.S.

Top 10 InsurTech Predictions for 2016

2015 was the year that InsurTech emerged from the shadow of Fintech. This story has been told through my last 40 research notes published on DailyFintech.com over the past eight months. Including 28 interviews with the CEOs and founders of InsurTechs, this story spans the globe from the U.S. to China, from South Africa to Estonia, and a few stops in between.

So, what does this tell us about the next chapter of this story? Here, I give you my Top 10 InsurTech predictions for 2016.

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In no particular order…

Prediction #1

Insurers will create lifestyle apps that provide additional consumer value on a continuing basis. Continuous consumer engagement will start to replace price as the key buying criterion. The result will be sticky insurance with strong brand loyalty.

Prediction #2

The person-to-person (P2P) insurance business model will struggle to reach scale in its current form. This will drive the P2P insurers to find new ways to replace the traditional carrier model, and we will see signs of a completely new business model for insurance. That will scale.

Prediction #3

Much greater levels of personalized rating will become widely available using new sources of data from technology such as wearables, the Internet of Things and smartphone apps. This will lead to variable premiums over the policy term to encourage better behavior (although insurers will hold back and not introduce corresponding punishments in 2016).

Prediction #4

“All in one policy” cover (aka, all-risks insurance) will emerge for consumer protection. Policyholders will be able to insure their lifestyle (their home, motor, dog, holidays, iPhone, treasures, travel) in a single policy based on highly personalized risk assessment through a digital platform.

Prediction #5

“All in one place” platforms (aka a concierge service) will replace traditional intermediaries with a digital broker. These services will consolidate multiple policies, converge with financial planning tools and provide robo-advice on gaps and duplication in cover.

Prediction #6

New entrants will come into the market with highly sophisticated data modeling and predictive analytics solutions. They will exploit mass-scale technologies, high-performance computing and techniques developed in high-frequency trading.

Prediction #7

Convenience and the ability to digitally turn insurance cover on and off as needed will be steadily accepted and adopted. As will microinsurance, sharing insurance and pay-per-mile. Unit premiums will be higher, but this will be outweighed by Millennial attitudes toward insurance cover and paying a price for convenience.

Prediction #8

The poorest in our world are the ones who need insurance the most. In 2016, the insurance industry will (finally) start to better serve the massively underinsured populations in developing countries. This will be driven by a combination of the massive market opportunity that exists for insurance, global economic forces and a socio-political agenda.

Prediction #9

There will be widespread deployment by traditional insurers of new digital solutions to reduce cost of claims and loss handling. Serving both ends of the insurance workflow, these tech solutions will enable better collection of data and evidence to improve risk rating at the front end and the claims handling processes, especially at first notice of loss (FNOL), at the back.

Prediction #10

2017 will be the year of block chain and insurance. No list of predictions would be complete without reference to block chain, but IMHO it is going to take all of 2016 for the insurance industry to get to grips with what block chain is, what it can really do for insurance and (most important) why we should use block chain as opposed to any other database or enabling technology.

Don’t get me wrong, for I am squarely in the camp that believes “block chain is the next Internet.” And we will continue to see a lot of block chain insurance activity throughout the year. But adoption in insurance won’t take hold until we’ve seen 2016 out.