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It's that time of year to reflect on the year that just passed us by in a what feels like a flash, mark my predictions from last year and throw some light on what I see 2017 holds in store for us all.
In my post from this time last year (here) - I made a number of predictions, I wanted to recap on how I did. Feel free to jump in and see how close to the mark I was and share your perspectives.
Reviewing 2016 - how did I do?
1. FinTech and InsurTech. We have seen some heavyweight investment (more so in the USA and Asia) and no major failures to my knowledge. Trending up. Marks 1.
2. Evolution of IoT. Evolution here is continuing, but not at the pace I expected. New firms such as Concirrus have sprung up with some great examples of managing & leveraging the ecosystem, plus many others of course. More below. Marks 1
3. Digital & Data. Progress, yes, pace and traction ahead of what's expected, not in my view. yet, but it feels like it's matured for sure. Marks 1.
4. M&A continue, but will slow. I think this has slowed this year, with the latter half the year focused on Brexit and the US Election in two of the three major regions, now with folks working out where that leaves FinTech/InsurTech. Marks 1.
5. Will the CDO Survive? In short, Yes. No sign of my Chief Customer Officers yet! (although after writing this, I came across 3 Chief Customer Officers, so it's a start). Have you ever asked an insurance company 'who owns the customer' or multiple people inside the insurer this question? That means for me we will still be product centric rather than customer centric. Marks 0.
6. New Business Models. Lots of talk in this area, including here at Deloitte in our Turbulence Ahead report. We identify four business models for the future, These are 1) Individualisation of Insurance, 2) Off-the-shelf Insurance, 3) Insurance as Utilities and finally 4) Insurance as Portfolio. They will take longer for this to materialise, but without doubt are coming. See my colleague Emma Logan describe these here. Marks 1.
7. What we buy & sell. We are still in talking mode, although the ideas here are evolving rapidly. Expect an all risks policy in Q2 2017. Marks 0.
8. Cyber is the new digital. An increase in the number of products and players, but still no personal cyber policy. I expect that in 2017 still. Marks 1.
9. Partnerships & Bundling. In short, Yes. Marks 1.
So in summary, I'm marking this as 7/9 or 78% - good effort, but my I may have been more ambitious than the pace I expected or hoped for.
Moving into 2017
Re-reading the above, I still feel they are all valid and will continue to push forward, be it the end of the CDO, the birth of personal Cyber or an All Risks Policy, I have been involved in enough conversations over the last 12 months to say these are very real, some closer to seeing the light of day than others. Moving into 2017, here's my Top 10 trends to watch:
Interestingly, there is now also so many accelerators, garages, hubs etc - that startups all now have a lot of choice and options as to where to incubate and grow their startup. A whole new challenge on the rush to Insurance Disruption.
Finally, two other observations that I wanted to share.
As always, I look forward to your feedback and views here too! What I have I missed? Here's to an exciting 2017!
Nigel Walsh | @nigelwalsh
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
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