For hundreds of years, the insurance industry was based on a model of generalization. Risk was calculated with limited tools: age, gender, income, and a handful of statistical filters based on demographic groups. Everyone in each segment was treated the same, more or less. By 2025, the old way of doing business, just like many outdated practices from past decades, will no longer be effective.
Consumers in both categories, individuals and organizations, desire an increased quantity of services. Insurers are required to perform thorough and detailed studies of their clients. Customers expect insurers to treat them personally in the same way as Netflix, Amazon, or Spotify do. Customers expect to be treated fairly, to have clear business operations, and to receive the feeling that the company is familiar with them, aids them, and is ready to follow the changes in their lives.
This desire for insurance has catalyzed a customer-first revolution in the insurance space; Big Data and Customer Insights are the fuel. They permit insurers to forecast, personalize, and pivot away from “standardized policies” to flexible coverage that incorporates the reality of true risk, behavior, and context.
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