Top Issues in 2020
Best’s Review recently asked readers: What are some of the top issues insurers will be focusing on in 2020?
- January 2020
The biggest benefit to the insurance industry in 2019 was that there were no new, big surprises. It implies that the top issues predicted for 2019 were accurate. This definitely does not mean that those issues are resolved by the industry, but it does portray that overall, the industry has the right direction(s).
The majority of carriers will continue to face the same top issues in 2020: the retirements of an experienced workforce; modernizing the workforce to compete in the industry; investments and an increase in spending for the modernization of legacy systems/products; remaining nimble to competition from insurtechs; and the need to assess and establish better partners to improve bottom lines. To remain profitable, insurers need to determine new products, ways of negotiation or underwriting relaxation to attract new customers. Insurers with a lot of legacy products/systems need to identify ways to consolidate them.
Advanced technologies like artificial intelligence, machine learning and blockchain ceased to be mere buzzwords in 2019. They have proven their utility and have impressive investments and results. Carriers being both rich and dependent on data need to start developing the culture and infrastructure to assimilate this new knowledge in 2020. Insurers also need to identify new data sources and capabilities in-house and outside to gain maximum benefits.
Privacy and cybersecurity laws will (and should) continue to evolve and provide new safeguards to policyholders. Insurers have already done their part in protecting policyholders and will continue to do so.
Pranav Sirvaiya, CPCU
Senior Domain Lead - Insurance
Value Momentum Inc., Erie, Pa.
‘Monte Carlo Conversations’
I found Stephen Catlin’s article, “Monte Carlo Conversations” in the November 2019 issue, to be quite informative.
For those of us who have been in the business for a while, it confirmed a general sense of what must happen next. Because the article was written by Mr. Catlin, the content of the article carries great weight.
I look forward to more from Mr. Catlin!
E&S Casualty Underwriter
Axis Insurance, Alpharetta, Ga.