Capgemini in partnership with Qorus published World Report Series 2023 Property and casualty insurance: from asset insurance to mobility protection, which discusses the future of the traditional auto insurance industry and the coming era of mobility insurance. As consumers begin to adopt new mobility solutions such as autonomous, connected, electric and shared (ACES) vehicles, the report indicates that insurance companies will have to adapt business models and move from traditional auto insurance products to protection offerings. mobility.
According to the report, the mobility insurance market is expected to double to $1.38 trillion in 2030. It is predicted that modes of transport such as micromobility, i.e. transport such as bicycles or motorcycles using multiple modes of transport and the use of shared vehicles, will increase. from 29% to 58% in 2025, according to Capgemini experts.
“The mobility industry is on the cusp of a major transformation. To successfully move into this new era of mobility, insurers need to leverage their risk management expertise and partner with experts like InsurTechs and BigTechs in the ecosystem to protect throughout the consumer journey. “Organizations that test high-value mobility offerings with high potential and scale mobility solutions with connected insurance platforms will position themselves for sustainable relevance and growth,” said Kiran Busam, global insurance industry leader Capgemini, in the report.
The report notes that insurers are likely to use new business models to adapt to changing insurance needs, using more personalization for consumers in both personal and commercial lines. The report highlights usage-based insurance (UBI), plug-and-play and modular subscription insurance offerings, technology solutions that can provide more dynamic risk assessment capabilities that will be needed in risk assessment as the mobility industry rapidly evolves.
“Mobility is at the heart of tomorrow’s world. It also underlies the concerns of insurance companies. [that] must rethink their business model from top to bottom to adapt to the profound changes that threaten the auto insurance industry,” said John Berry, CEO of Qorus, in a press statement.
According to the report, less than a third of insurers, 29%, report that they currently have the capacity to grow to meet consumer expectations. Only 26% of companies say they have enough talent to support customer-facing mobile products.
The report also mentions that a mobility insurance-focused technology business model is paramount for 67% of insurers, although only one in three insurers report that they have such a plan. Capgemini envisions that in order to meet consumer expectations and adapt business models accordingly, insurers can leverage risk knowledge with experience in the mobility industry to ensure a smooth transition from selling products to providing more customer-centric mobility insurance solutions.