The Insurer of the Future‘s customer won’t have to buy individual products. Instead, she’ll buy a total risk management solution which flexes to her needs month by month, day by day, and hour by hour. And she’ll be billed according to her actual usage, so she’ll never be under, or over, insured.
When the Insurer of the Future‘s customer leaves her house, the accidental damage element of her home cover will decrease – because she’s no longer there to damage anything. But her flood and fire cover will go up, as she’s less likely to spot such events early.
If she buys a new TV, her Insurer will know that, and add it to her policy. They will also ask what’s happening to the old one, and remove it if no longer relevant.
If the customer goes hiking in the wilderness, the Insurer of the Future will pick that up and increase her life cover. If her hiking is abroad, travel covers will kick in automatically. And once the customer is back home safely, her cover, and her premium, goes down again.
Once the Insurer of the Future has earned its customer’s trust, she might choose to open up her current and future Search history and Social Media accounts to its systems. That way it can monitor what she’s thinking about doing (bungee jumping, getting married, having a baby?) and step in with timely advice and support.
Some of the Insurer of the Future‘s older employees remember when ‘customer lifetime events’ were the elusive holy grail. Not any more – now the Insurer knows about all of these events, often before they even happen.
Please see Part 7 – Product Development for further predictions.