In this post we’ll explore some of the key trends that could define the insurance market in 2024. As well as some key opportunities for growth, we’ll also discuss some of the major challenges that the next year could pose to insurers and insurance brokers.

Further Advancements in AI

Artificial intelligence (AI) has given the insurance industry a significant shake-up in recent years. By 2025, some estimate that the market potential for generative AI could reach $15 billion in the insurance industry alone.

How can Insurance Brokers Use AI?

Insurance brokers can embrace generative AI applications to:

• Improve the accuracy and efficiency of underwriting processes.
• Deliver a superior customer service experience with responsive chat functions.
• Automate certain time-consuming administrative tasks, leaving more time to focus on your core offering.

AI Policies and Procedures

As the technology becomes more advanced and more widespread, you should consider developing a robust set of AI policies and procedures for your business. Consider aspects such as risk management, governance, and how you’ll ensure the accuracy and reliability of your AI systems.

Cybercrime, Cybersecurity, and Cyber Insurance

While AI will bring a lot of opportunities, it will also bring a lot of new challenges. And cybercrime is one area in which it’s going to create a lot of problems.

Cyber criminals can use generative AI tools to automate certain cyberattacks. Potentially, AI could also make phishing attacks a lot harder to guard against, putting more businesses than ever before at serious risk of data breaches.

How Increasing Cybercrime Affects Insurance Brokers

Insurance brokers will have to be as wary of these risks as any other business. Yet the rise in cybercrime also presents something of an opportunity: As growing numbers of businesses develop cyber security policies, expect cyber insurance products to become increasingly popular.

Inflation and Insurance

There is a strong link between inflation and insurance. As inflation drives up the cost of fuel and materials, insurance premiums also tend to rise.

Inflation is relatively unpredictable, and it’s hard to say how global events could influence the insurance climate throughout 2024 and beyond. But already we’re seeing growing conflict in the Middle East, with some attacks specifically targeting international shipping routes.

This situation could lead to issues with supply chains, along with rising prices for construction materials and other products. This could increase the cost of certain claims – such as building repair claims – so insurers will likely raise their premiums to cover their costs.

Are You Ready For The Challenges and Opportunities of 2024?

Whatever challenges 2024 brings, we can support you to stay compliant, resilient, and adaptable in an increasingly volatile world.

At Tapoly, we offer bespoke insurance software solutions for insurance companies of all sizes. Our software as service (SAAS) can include both tailored brokerage and end-to-end fulfilment solutions.

Learn more about how our award-winning SAAS helps insurers, brokers, MGAs, agents, and program providers.

If you have any questions, or you’d like to discuss your options, you can contact the Tapoly team at info@tapoly.com, call our info line on +44(0)207 846 0180, or use the chat box on our website.