LONDON, 22 June 2023 - Aon plc (NYSE: AON), a leading global professional services firm, today launched its Transformative Trends report, which reveals the key growth opportunities for insurers across a wide range of evolving risks with estimated time horizons to help them make better decisions to protect and grow their business.
Developed by Aon’s Strategy and Technology Group, the report reveals the top 10 growth opportunities for insurers to respond to customer demand while increasing the industry’s relevance, growth and diversification. The findings are the result of the Strategy and Technology Group’s analysis of several global industry trends and global market size, combining Aon’s proprietary research with more than 100 third-party sources and over 30 interviews with sector specialists.
The report reveals that prescriptive analytics – which applies machine learning and data influx to provide actionable insights, with authority to make automatic decisions – represents the single largest megatrend re/insurance opportunity, with potential gross written premium (GWP) expected to exceed $100 billion by 2030. However, being linked to multiple other trends, prescriptive analytics requires careful consideration and planning by re/insurers to seize the opportunity and mitigate the risk.
The second biggest growth opportunity identified is shared mobility – which includes shared autonomous vehicles, hailed vehicles, car sharing and air taxis with a potential to exceed $40+ billion in GWP by 2030. Intellectual property (IP) and the Metaverse could each generate in excess of $20 billion in GWP by 2030, the former driven by a global economic shift from tangible to intangible assets, which were estimated to have reached around $60 trillion in value in 2022.
Sherif Zakhary, CEO of Aon’s Strategy and Technology Group, said: “These megatrends each equate to risk and opportunity for the global insurance industry, and so as risk experts we cannot afford to sit on the sidelines and wait for these trends to crystalize. We have the technology and ability to anticipate the future landscape and develop innovative products and solutions to enable stakeholders to fulfill their biggest needs, from accessing new forms of capital to navigating emerging volatility. In order to accelerate this innovation, insurers must attract a broader range of talent and make use of cutting-edge technology, including advanced analytics.”
The study outlines further growth opportunities for insurers, including carbon capture, carbon asset decommissioning, nature-based products and biodiversity, biotechnology, electrification, and ”build back better” – also known as resilient infrastructure development.
In addressing these transformative trends, Aon’s Strategy and Technology Group is helping insurers to establish frameworks to understand the future landscape, using intelligence and insights to anticipate global macro trends. This will enable insurers to explore the highest potential areas of opportunity for their portfolio, identify relevant growth products and services based on their risk appetite, and execute on entering new markets. In addition, re/insurers will have to focus on new and appropriate talent, infrastructure and business culture, which will be key to capturing opportunities.
Aon’s Transformative Trends report is available here. For more information, please visit: https://www.aon.com/solutions/strategy-technology-group.
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