According to Sean Kevelighan, President & CEO of the Insurance Information Institute (III), says catastrophes, both natural and man-made, are having a large impact on personal lines insurance carriers. An increase in natural catastrophe has an impact on auto and homeowner’s insurance, and the “vastly underserved” flood market continues to be an issue.

The auto insurance market is being impacted greatly by daily manmade catastrophes on the road that are reaching epidemic proportions, from more drivers on the road to more distractions, drugs, and electronics. And cyber risk is also entering the personal lines insurance market as individual electronics are being hacked more frequently.

Mr. Kevelighan sees opportunity for personal lines insurance carriers if they can “capture what the consumer wants.” The customer has been “Amazoned.” With that as the new bar, carriers need to consider ways to deliver real time insight and feedback, including risk mitigation, including flood sensors in the home, auto technology to improve driver safety. It’s a real opportunity.

The next two to three years will see incredible change. The sharing economy will only increase, as will the use of semi-autonomous vehicles and other technologies. Mr. Kevelighan advises personal lines executives to “move with the change.” Those that identify how to manage the new risks and help customers mitigate risk, will be the real winners.

Special thanks to AAIS for their contribution.

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