From business perspective, many changes noted in insurance sector are occuring in other professions

QUOTE: As insurance shifts from being a risk product to a consumer product that is more usage-based, there will be dramatic changes in the way insurance is bought, sold and distributed.   The shifts in business models will dramatically change the way insurance is bought, sold and distributed. The historical strength and pride of every insurer has been agency. The future consumer will want experience, ease and choice. The old model of distribution based on trust, relationships — the agency — will face extinction and will move to a more experienced, choice-based, real-time distribution model via Facebook, Amazon, eBay and many other channels. Insurance will no longer be an annuity product or even a term-based. It will be a choice and usage based.

Consumerization will force the death of fixed-cost in insurance companies. Just as their customers are demanding of them, insurance companies will demand variable cost and “pay as you go” models from their suppliers of technology. Large change programs will be replaced by small agile based many projects. Software licensing will be replaced by utility.   The insurance industry will demand a new, fresh approach to talent building.   It won’t be too long until there will be a green field virtual insurance company which will completely disrupt the way insurance is bought and sold. Underwriting will be on the spot, policies will be simple, customer behavior will be analyzed to petabyte and claims will be handled in real-time with customer interaction at its finest.