Home Technology Technology is changing consumer behaviours: Moody’s

Technology is changing consumer behaviours: Moody’s

Technology is changing consumer behaviours: Moody’s

According to Moody’s, the fast take-up of digital know-how by companies and shoppers through the pandemic underlined its crucial significance for the insurance coverage sector.

Moody's Investment ServiceThe firm’s analysis confirmed that insurers more and more use information from social media and gadgets linked to the web to achieve actionable insights into policyholder behaviour, which helps underwriting margins.

However in the long run, interconnected gadgets, reminiscent of driverless automobiles and wearable tech, will make sure widespread accidents and accidents much less frequent, decreasing demand for some conventional insurance coverage merchandise.

The unfold of linked gadgets additionally brings new dangers, notably these associated to cybersecurity and software program malfunction.

However, these will probably be tough for insurers to cowl, as a number of interconnections between good gadgets will improve occasion correlation, making extreme losses extra probably.

Moody’s expects tech-driven disruption to be comparatively gradual, giving modern gamers time to adapt. Incumbents will nonetheless have to foster a tradition of steady innovation, and construct agile digital-led operations and powerful information capabilities, to drag forward of friends and change into beneficial companions to adjoining gamers.

Helena Kingsley-Tomkins, VP-Senior Analyst at Moody’s commented: “To stay aggressive, insurers could search distribution partnerships with Big Tech teams, or with dominant gamers in adjoining sectors reminiscent of automotive manufacturing.

“But insurers danger revenue margin erosion in the event that they change into reliant on their companions to generate gross sales and step by step lose management over their buyer relationships. In a extra extreme situation, Big Tech gamers or auto producers could even begin offering insurance coverage themselves, displacing incumbents from some worthwhile markets.”

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