A brief view of the insurance industry today

The insurance industry is undergoing a period of significant change. The rise of digitalization, the growth of new markets, the increasing importance of data analytics, and the emergence of insurtech are all having a major impact.

In addition, as weather-related claims have become more frequent and severe, insurers have chosen to manage risk exposures by exiting certain regions and, in the US, states such as Florida and California. US and UK Inflation has been driving up costs to the point where significant premium price increases have been imperative. Combined ratios, which skewed heavily into losses during 2022, are now improving significantly for most insurers giving rise to renewed budgeting for innovation.

The majority of consumers continue to be price-driven, which can lead to low-margin business models with falling retention rates and customers who have little connection with their insurance provider. Insurance is widely acknowledged as one of the sectors most exposed to disruption, a trend that has been aided by the efficient use of data and the segmentation of different risks and customers. To compete in this environment, incumbent insurers now understand the need to differentiate their products and add value.

That's where we come in. We understand the importance of making the customer proposition tangible and relevant, significantly improving customer experiences. We know that precise and highly granular data, generated from new and often digital customer interactions, can be used to create dynamic ecosystems, deeper engagement, greater risk mitigation, and more revenue-generating opportunities.

No matter the type of insurance product, LJS breathes new life into the industry to the benefit of customers and insurance providers alike.