Insuranceciooutlook

Top 4 Trends Transforming the European P&C Insurance Market

By Insurance CIO Outlook | Friday, September 13, 2019

The European P&C insurers are embracing futuristic business strategies by investing in precision technologies to create growth opportunities.  

FREMONT, CA:  The European market offers a wide variety of insurance policies and services. The Property and Casualty (P&C) segment that provides a host of products under its banner has seen steady growth owing to the upward trend shown by the combined GDP of the region. Many sweeping changes have been taking place in the P&C insurance services which are determining its service quality and future potential. Technology is playing the role of enabler, and tech-based solutions are helping insurance companies enhance their capabilities as consumer expectations evolve. This article throws light upon the European P&C insurance sector and tries to unravel the trends.  

• Modern IT Services  

The insurance industry banked on several conventional core processes, and the traditional approaches to these processes are losing relevance today as technology has advanced significantly. The European P&C service providers with legacy business models are re-evaluating their operational processes by looking for feasible technological interventions that can help them deliver the goods in the modernised ecosystem. This necessity of migrating to advanced technologies has increased the demand for IT service providers. Software suites with solutions that aid insurance players to adopt optimised back-end as well as front-end service development are becoming more popular among well-established companies. By providing robust platforms for quick deployment of digital working prowess and scalable architecture for seamless growth, these tech-based ideas are powering meaningful transformations.

 Higher Demand for Motor and Higher Claims for Property Insurance

Among all the insurance segments that come under P&C, motor insurance premiums have seen higher growth. In most European countries, motor insurance took a clear lead, followed by property insurance. Premiums for motor insurance in Europe show different trends in different countries with factors like falling risks of accidents and changing traffic regulations determining the trend. In the case of property insurance, the claims have been on the rise due to the onslaught of various natural catastrophes which have caused severe damage to property in vulnerable regions. An increase in the frequency of floods, storms, and wildfires have led to increased spending.

• Popularity of Configurable and Cloud-Based Offerings

P&C companies have to cater to a larger variety of procedural requirements when compared to other categories of insurance service providers. In Europe, P&C insurance providers have been creating the demand for exclusive software solutions with high degrees of configurability. Most of these companies have been on the look-out for vendors that bring with them speed and functionality. Depending on the products offered by an insurance firm, service providers are now tailoring their solutions. Business demands are increasingly becoming unique as variability is scoring better than pricing in giving a competitive advantage. Thus, flexible and cloud-based operation and management solutions have found valuable clients among P&C insurance companies in Europe.

• Automation-Oriented Growth

With the rise of insurtech companies, the dynamics of competition are now changed. Taking the lead is now solely dependent on technological superiority. Big and small European insurance players have now acknowledged the value of automation in the industry. The transition from manual tasks to automated ones is enabling stakeholders to drive error-free and time effective functioning. The P&C sector has figured out the potential of using automation in claims management and processing, dealing with customer queries and in many other areas.

The wave of digitalisation has intensified, and P&C insurance firms in Europe are poised to integrate their facilities to make them comprehensive and convenient. How the segment scales its transformation will determine its market health in the longer run.  

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