Future of General Insurance Industry

2. Future of General Insurance Industry The need to be protected can be traced back to being as old as the history of human existence. It started with the discovery of fire, finding shelter for ourselves then further graduated towards setting up communities, villages and civilizations. The fundamental thought behind these was to stay together and protect each other. And to ensure that in our time of need we have someone to help us and be with us. The basic idea is to provide protection if something goes wrong. This is essentially what the principle of insurance is all about. But as societies started expanding it was getting difficult for smaller communities to take the responsibility of bigger risks and that’s how the concept of insurance was conceived.

3. Need for Security When we talk about the future of insurance, we have to clearly understand that the need for security will always exist and human beings will continue to live for as long as this planet continues to be liveable. Thus inevitably insurance will definitely be around for as long as human beings will survive. The world around us is evolving, be it business, customer needs, distribution network etc. But one thing which remains constant is human emotions, bonding and our need to stay protected. If we clearly understand these fundamentals, it’ll be easier for us to see how the future of insurance will look like. Insurance is a service industry and it has to place the customer at the center of all its functions. In its initial phase, the insurance industry only provided protection against particular incidents such as fire or accidents.

4. Future of Insurance Much is being talked about driverless cars being the next disruptive innovation in the automobile industry. In an environment where driverless cars become a regular occurrence, who would be held responsible for an accident? Not the driver of course but the manufacturer can be held responsible. From motor insurance which covers the damage to the vehicle, the cover will shift to a liability insurance for the manufacturer. We’ve heard about the recent case wherein the driver of a Tesla car was killed in a road accident after its autopilot mode failed to recognize the approaching truck. 

5. Reportedly the driver was watching a Harry Potter movie and wasn’t manually controlling the car when the crash happened. In such a case it is very likely that the car manufacturer would be held liable for the crash. Today automobile insurance constitutes half of the general insurance business globally. It is likely that this may suddenly reduce to a very small percentage. But this trend shouldn’t come to us as a shock. Because if we look at the history,

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