Collaboration with InsurTechs can create growth for insurers: Aon

On-demand economy presents opportunities as well as disruption

Aon plc has launched its annual Global Insurance Market Opportunities (GIMO) report, examining areas of potential growth for insurers.

The report identifies cyber risk, casualty catastrophe risk and pathogen risk as key areas of potential growth, noting that insurers can provide new and enhanced products through collaborations with InsurTech companies and analytics providers.

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The on-demand economy presents opportunities as well as disruption to the insurance sector, Aon notes. The GIMO report observers that there is a greater need for insurance products that recognize that cars and homes are increasingly used for both commercial and personal purposes, citing services such as Uber and Airbnb as examples.

Aon predicts that by the year 2050—when autonomous vehicles are expected to be fully adopted—U.S. motor pure premiums could be more than 40% below their 2015 levels. The frequency of accidents is expected to go down, but the severity of accidents could increase, and liability could be transferred from drivers to car manufacturers and software providers.

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The GIMO report also has a strong focus on the cyber sector, and notes that cyber insurance policies should now offer access to incident response teams and additional services, allowing insurers to increase their value proposition to clients.

Read the full report here.

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