The Future of Motor Insurance Gus Park MD, Motor Insurance Direct Line Group Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016)
Disclaimer The views expressed in this presentation are those of the authors, Gus Park, of the paper and not necessarily of the Staple Inn Actuarial Society or Direct Line Group Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016)
Questions for the audience 1. How big will the UK motor insurance market be in 2040? (% change in £bn premium) There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers. Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 3
What others think… Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016)
Questions for the audience 2. Will there be more or fewer cars on the road in 2040? There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers. Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 5
What others think…when they’re being optimistic Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016)
What others think… Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016)
Questions for the audience 3. What % of people will own their own car? There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers. Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 8
What others think… Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016)
Questions for the audience 5. How much safer do autonomous cars have to be in order to be trusted? There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers. Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 10
Questions for the audience 6. If you could travel to work in a robotaxi, would you? There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers. Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 11
Questions for the audience 7. Will we end up in product liability market? There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers. Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 12
How should an incumbent car insurer respond? Embrace change and disrupt own market Pluralistic Collaborative Look forward, not backwards Use brand and distribution Rethink traditional product structures There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers. Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 13
Thank you – Questions?