Insurance Insights That Matter

In 2023, insurance leaders will navigate turbulence not seen since the 2008 financial crisis. Insurance cover will shrink or disappear as consumers and small businesses face cash flow pressures. Tech teams will batten down the hatches with less fulsome budgets and greater regulator attention on AI — the technology that’s most likely to help them thrive. More insurers will launch value-added services that shore up revenues while reducing claims. And recession reality comes home to roost as the IPO market evaporates, with many insurtechs exiting through wind downs, roll-ups, or carrier acquisitions. In this report, we delve into Forrester’s predictions for insurance in 2023.

Why Read This Report

Read this Forrester Predictions report to get a clear view on some of the upcoming trends in banking to help guide your firm through a period of recovery and innovation. Here are a few predictions:

• Policy lapses will rise by 20% as customers tighten purse strings. As a result, smart carriers will launch new products like month-to-month coverage; usage-based insurance, as one of the only means to get a discount, will finally achieve double-digit market share.
  
  
• At least half of the top 10 insurers will roll out fee-based, value-added services. To offset declines in premiums and policies in force, more insurers will introduce new non-insurance services.
  
  
• Reducing costs will be one of the top insurance business priorities into mid-2023. Budget cuts won’t be equal across IT priorities, and insurers will still grow IT budgets — albeit modestly — in 2023.