The UK motor insurance industry is going through significant shifts in technology, regulation, economic conditions, and customer behaviour, with insurers urged to go digital to beat competition.
The revelation was made by Innovation Group’s report, ‘The Future Now Report – All change for the UK motor insurance industry’.
The report highlighted the current trends within the UK motor insurance market and its effect on the motor insurance sector.
The report said that the changes are throwing the insurance industry into a state of uncertainty, and with the increased competition from disruptive digital brands, the market share of insurance providers are likely to be hit.
These changes are expected to force many insurance providers to re-think the way in which insurance is provided as a service now and in future.
The emergence of new technology such as big data and advances such as connected cars has raised consumer expectation and is posing challenges to the insurers to keep up with the changes.
UK Motor at Innovation Group Managing Director Chris Ashworth said: "One change is difficult enough but four at the same time is incredibly challenging for insurers.
"The customer is currently in the driving seat when it comes to motor insurance.
"Digital transformation and increased competition have both helped push premiums down for sales teams and aggregators. As such, smart insurers must focus on delivering more value and a wider range of products to consumers.
"It’s not a threat, it’s very much an opportunity to embrace change and lay the foundations for future success, particularly in the claims arena."
