Four key issues that drive the change in the industry

Customer relevance – Closer customer interaction, primarily through digital channels, creates higher customer loyalty. A success factor is to work more proactively and preventively with customers. Tips in lifestyle and health prevent damage and accidents. Then you can manage risk more efficiently and at the same time create higher customer relevance to customers. This enables a potential to sell complementary products and services.

Transparency – better informed consumers lead to more rational decisions regarding insurance and savings. Today, it’s cool for a customer to compare insurance products from different players. Here, for example, customer information sites like My Pension and Consumer’s website and price comparison sites such as InsPlanet and Compricer play an important role. Regulatory directives such as IDD and PRIIPS also force the industry to clearly and uniformly report prices and fees for their insurance offers. Customers are therefore better at choosing the most affordable products, which puts pressure on lower fees.

Disruptive technology – The use of Artificial Intelligence and Machine Learning for all virtual assistants, advanced robotised counseling, dynamic pricing and automated claims settlement waiting around the corner. Internet-of-Things with the ability to gather large amounts of data in real-time from products and living creatures provide support for prevention and individual pricing. Blockchain technology is expected to have a dramatic potential and be able to function as tomorrow’s central infrastructure for transferring value over the Internet. Itello, together with Royal Institute of Technology in Stockholm, conducted a project during the year to evaluate the potential and applicability of the Nordic life and pension insurance industry.

Compliance – The industry’s actors also have the daily business to handle. This is stressed by new regulations and laws. In recent years, Solvency 2, GATCA, FATCA, IDD, MIFID and GDPR have been introduced. Now IFRS17 and PEPP are waiting, changes are in other words constant and must be handled. Operators with modern IT system support see opportunities for new regulations. Others need to put resources on many proprietary systems to meet the new requirements.nities for new regulations. Others need to put resources on many proprietary systems to meet the new requirements.​

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