Within a somewhat harsh macro environment, the P&C insurance landscape is evolving quickly. Policyholders are looking for more personalized offerings through the platform/channel of their choice. Now, more than simply a concept, the sharing economy is gaining ground and opening new market opportunities for insurers. Non-traditional players have actively entered the insurance space. As P&C insurers work to manage the evolving business landscape, they are taking steady transformational steps to become an Inventive Insurer by developing direct-engagement channels with customers. Moreover, insurers are leveraging AI-based tools to create auto-adjudication systems and techniques for quicker and more effective underwriting and claims processing. Firms are also developing sophisticated methods for understanding the evolving risk scenario to accurately price products and create customer awareness. These approaches can help insurers provide superior customer experience during critical moments of truth. Top Trends in Property and Casualty Insurance: 2020 explores the innovative approaches future-focused insurers are taking to stay competitive within today’s dynamic business landscape.

1. Top Trends in P&C
Insurance: 2020
December 2019
Link: https://www.capgemini.com/top-
trends-in-2020/

2. 2© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019
Top Trends in Property and Casualty Insurance for 2020 by Capgemini
P&C insurers are responding to shifting market dynamics
Source: Capgemini Financial Services Analysis, 2019
Enhancing
operational
efficiency
Changing
business
environment
Evolving
customer
preferences
Insurers explore auto-adjudication in personal lines, to process more complex claimsTREND 9
Insurers are using blockchain to create a more integrated insurance ecosystemTREND 10
More insurers use the cloud to deploy core systemsTREND 8
Insurers launch new offerings suited to the sharing economy
Non-traditional firms slowly but steadily enter the insurance space
TREND 5
TREND 7
Regulations, customer concerns necessitate insurer focus on data privacyTREND 4
A rise in natural catastrophes drives insurers to update risk assessment modelsTREND 1
Insurers are leveraging AI-based solutions to improve risk management capabilitiesTREND 2
Emerging
risk
landscape
TREND 6 InsurTech investment is on the rise; late-stage startups draw the most attention
TREND 3 Insurers offer direct-engagement channels to small and micro-commercial businesses

3. 3© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019
Source: Capgemini Financial Services Analysis, 2019
Trend 1: A rise in natural catastrophes drives insurers to update risk assessment models
Business
Environment
Operational
Efficiency
Risk
Landscape
Customer
PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini
Global natural disasters have spurred the industry to augment risk-assessment
techniques for more accurate pricing – and to narrows the coverage gap
3© Capgemini 2019. All rights reserved |
Reduce
losses
Close
coverage
gaps
Price
optimally
Upgraded risk-
assessment
techniques -
benefits
Estimate
risk more
accurately
Plan
product
pipeline
strategically
Create
customer
awareness

4. 4© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019
Trend 2: Insurers are leveraging AI-based solutions to improve risk management
capabilities
Source: Capgemini Financial Services Analysis, 2019
Insurers use AI to strengthen assessment and risk monitoring to focus on prevention
Business
Environment
Operational
Efficiency
Risk
Landscape
Customer
PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini
Key benefits of AI-based solutions in risk management
Continuous risk
assessment
Real-time risk
monitoring
Risk prevention
Better pricing and profits Mitigates loss incident severity and frequency

5. 5© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019
Trend 3: Insurers offer direct-engagement channels to small and micro-commercial
businesses
Source: Capgemini Financial Services Analysis, 2019
5© Capgemini 2019. All rights reserved |
Business
Environment
Operational
Efficiency
Risk
Landscape
Customer
PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini
Easier to access underserved
markets such as the gig economy
Operational and
cost efficiencies
Enhanced
customer
experience
Advantages of direct-engagement channels
Direct engagement channels offer personalization and convenience to small- and micro-commercial business
owners who purchase business insurance similarly to their personal lines

6. 6© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019
Source: Capgemini Financial Services Analysis, 2019
Trend 4: Regulations, customer concerns necessitate insurer focus on data privacy
6© Capgemini 2019. All rights reserved |
As insurers leverage data to improve processes across the value chain, they must also address
data-privacy concerns from customers and regulators
Business
Environment
Operational
Efficiency
Risk
Landscape
Customer
PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini
Regulatory
pressure is
increasing, and
heavy penalties are
levied for data
breach incidents
Policyholders are
becoming more
aware and worried
data privacy
However,
innovative offerings
require access to a
variety of data

7. 7© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019
Trend 5: Insurers launch new offerings suited to the sharing economy
Source: Capgemini Financial Services Analysis, 2019
7© Capgemini 2019. All rights reserved |
Business
Environment
Operational
Efficiency
Risk
Landscape
Customer
PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini
Potential benefits
of new insurance
offerings for the
sharing economy
Increase
users’ trust
in sharing
economy
Generate
new revenue
streams for
insurers
Enable
millennial/
insurer
relationships
Insurers consider innovative new offerings as sharing-economy developments open opportunities

8. 8© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019
Trend 6: InsurTech investment is on the rise; late-stage startups draw the most attention
Source: Capgemini Financial Services Analysis, 2019
8© Capgemini 2019. All rights reserved |
As InsurTechs
become a primary
source of industry
innovation,
interest in mature
and established
firms is growing
Business
Environment
Operational
Efficiency
Risk
Landscape
Customer
PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini
Insurance
firm
investment
arms
Venture
capitalists
Incubators/
accelerators
BigTechs
Who is
investing in
late-stage
InsurTechs?

9. 9© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019
Advantages
of non-
traditional
firms
Access to
customers’
data
Have
earned
customers’
trust
Focus
on robust
ecosystems
Trend 7: Non-traditional firms slowly but steadily enter the insurance space
Source: Capgemini Financial Services Analysis, 2019
9© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019
Business
Environment
Operational
Efficiency
Risk
Landscape
Customer
PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini
With keen customer insights and superior digital distribution capabilities, non-traditional firms have the potential to
carve significant market share from traditional insurers

10. 10© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019
Trend 8: More insurers use the cloud to deploy core systems
Source: Capgemini Financial Services Analysis, 2019
10© Capgemini 2019. All rights reserved |
More insurers are using the cloud to deploy core systems so they can improve digital agility
and enhance operational efficiency
Business
Environment
Operational
Efficiency
Risk
Landscape
Customer
PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini
Benefits of
cloud-based
core systems
Enhanced business
agility
Higher operational
efficiency
Stability
Better customer experience
Cost savings
24 x 7 system availability even
during times of catastrophe

11. 11© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019
Trend 9: Insurers explore auto-adjudication in personal lines, to process more complex
claims
Source: Capgemini Financial Services Analysis, 2019
11© Capgemini 2019. All rights reserved |
Business
Environment
Operational
Efficiency
Risk
Landscape
Customer
PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini
Benefits of
auto-
adjudication
After the success of auto-adjudication for basic automotive claims, insurers are exploring
emerging technologies to automate more complex claims

12. 12© Capgemini 2019. All rights reserved |P&C Insurance Trends 2020 | December 2019
Trend 10: Insurers are using blockchain to create a more integrated insurance ecosystem
Source: Capgemini Financial Services Analysis, 2019
12© Capgemini 2019. All rights reserved |
Blockchain solutions can be used to build a more integrated insurance ecosystem with simplified processes and
streamlined information exchange
Business
Environment
Operational
Efficiency
Risk
Landscape
Customer
PreferenceTop Trends in Property and Casualty Insurance for 2020 by Capgemini
Lower operational costs
Streamlined information
exchange
Real-time access to
information
Better transparency and
security
Key
advantages of
blockchain
technologies

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