Insurance sector in the UK is expected to get a $64.3bn (£49.5bn) booster shot due to tectonic changes in technological, macro-economic and behavioural patterns by 2030, reveals a report published by PwC.
Overall, the UK financial sector is expected to gain more than $137.66bn (£106bn) in new business in service developments as companies work to fulfil the changing habits of consumers.
Titled ‘Harnessing the power of disruption’, the report highlights that the emerging risks and new tech could drive disruption in commercial lines insurance, which will be equal to 25% of current revenues.
This change will lead to an estimated market surge of £27.6bn by 2030.
Additionally, the report predicts that disruption opportunities in the life and pensions sector could benefit the market by £15.7bn.
Technology to play important role in Insurance Industry
By 2030, almost a quarter (24%) of the personal insurance market could be interrupted due to the changing nature of risk and better data. As a result, it will give a £6.6bn boost to the business.
The disruptions, according to report, is being fuelled by “new entrants” due to their approach of offering new, more customer-centric and digitally enabled services.
PwC strategy and financial services head Shazia Azim said: “Our analysis shows an upswing of more than £100bn by 2030, if sector incumbents and new entrants successfully horizon scan evolving consumer needs across key areas including insurance, SME lending and asset management.
“FinTech presents a fantastic opportunity for financial services businesses to harness technological disruption and help shape the future of the industry.
“Crucially it helps level the playing field for those start-ups and scale ups using and developing cutting edge technologies. As a result, these newer players will be better equipped to battle for market share with the larger firms still adapting to the rapid pace of change.”
PwC said that the analysis was carried out in April 2019.