The future of insurance is the aftermath of today. The instability of the market has become a permanent condition and affects the intensity and extent of these changes. This requires investment in something new and unknown.
Insurance companies face challenges of inflation, interest rates and so forth. They handle risks of pandemics, cyberspace and the natural environment, which already have a significant impact. All this, combined lead the insurance industry to necessary institutional changes.
Many changes made during the pandemic will continue. More than 65% of consumers intend to continue the habits they have adopted. Many of the pandemic changes in the insurance industry, especially those related to claims, are likely to be sustained as well.
Important opportunities for those who will be ready
By 2026, the millennial and post-millennial generations will make up almost half of the adult population. These digital consumers demand seamless, multifaceted real-time contacts, integrated with platforms they already know as well as new ones.
Insurers will continue with the needs of the other half of the population. The X generations and the post-war (baby boomers), who do not have the same preferences.
The Acceleration of technology
Some of the biggest technological changes concern the adoption of possibilities for digital claims, such as the significant increase in the use of Artificial Intelligence (AI) in motor vehicle and property claims and a significant increase in the use of telemedicine for injury claims. The opportunities are plentiful.
The Customers of the New Age
Millennials and Gen Z, as the dominant buyer are shifting insurers’ confidence because they do not follow the traditional life and market patterns set by older generations. Young people have changed the types of insurance products, the growing desire for value-added services and the expectation of personalization, by leveraging new data sources. These changes will drive demand for new, innovative products and services.
The use of digital payments will continue to increase. Insurers have to support a wide range of digital payment options, both for paying premiums and for paying claims.
Conclusions
Based on all the forecasts, it is obvious that everything will increase due to the changes and the innovation that is coming. The development path now categorically determines where the insurance sector of Cyprus will be in 2026. Networking teams need to be created as part of our development strategy. This will create new productive business relationships, and offer creative solutions to take advantage of new business opportunities.
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The G.A.P. Vassilopoulos acts as Brokers through their well-established relationships with international ‘A’ Rated insurers’ as well as the local Cyprus market can cater for a wide range of insurance products.
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