Insurance Disrupted Through Exponential Technologies
The rate of technological change is accelerating so fast that our ability to understand the implications of it has never been so challenging and so important. Startup companies unburdened by inertia or Wall St. expectations are growing faster than everand displacing incumbents in record time. Recognizing and embracing exponential opportunities sets apart successful leaders who shape the future of an industry from linear thinkers at risk of being disrupted. Over the next five years, financial services and indeed all sectors of the economy will be dramatically disrupted, primarily by greater customer empowerment and technology driven innovation. Deloitte has evaluated the key trends impacting the insurance value-chain. Insurers need to understand these in order to position themselves to respond to the threats and opportunities disruption affords. Refer to Figure 1.0 The insurance sector is considered to be highly regulated, complicated, and impenetrable. This is no longer the case; more than ever, insurance start-ups are popping up and finding both funds and users within the space to give consumers more options than ever for every type of insurance experience or need one might have.
Exponentials in Insurance
We live in an era of unprecedented change, driven by rapid and exponential evolution of disruptive technology and game-changing ideas. These disruptors are not decades from reality —many have already realized mainstream adoption across multiple industries (e.g., 3D printing), while others aren’t far away (e.g., nanotechnology, driverless cars). While individual technologies and organizational enablers have the power to disrupt existing business models or even entire industries, their real power emerges when they converge. A diverse set of exponential technologies and organizational enablers are converging and disrupting the “old” way of doing business.