World

ReportSeries2023Property

and

CasualtyInsuranceFROM

INSURING

ASSETSTO

PROTECTING

MOBILIT

YDRIVINGGROWTH

INTHEEVOLVING

MOBILITY

ECOSYSTEMIn

cIonlcl

aoblloarbaotri

oantiowni

twhith2World

Property

and

Casualty

Insurance

Report

2023CONTENTSForeword345Executive

Steering

Committee

2023Executive

summaryMobility

market

evolution

drives

ACES

andmulti-modal

premium

growth69Shifting

from

auto

insurance

to

mobilityprotection

requires

new

business

modelsMake

the

move

from

product

developerto

solution

co-designer19232425In

conclusionMethodologyPartner

with

CapgeminiWorld

Property

and

Casualty

Insurance

Report

20233FOREWORDAs

the

song

goes,

“Life

is

a

highway...”

And

now,

policyholders

are

in

the

driver’s

seat.

Many

own

bicycles,cars,

trucks,

e-bikes,

or

two-

or

three-wheeled

motorcycles.

Others

participate

in

co-worker

driver

pools.Some

share

bikes

and

cars,

rent

vehicles,

and

use

public

transportation.

They

are

sensitive

to

fuel

costs,parking,

repairs,

and

environmental

impact.Yes,

mobility

is

in

?ux,

and

insurers

are

feeling

the

impact.

As

policyholders

become

more

aware

ofautonomous

driving

and

multi-modal

travel

options,

automotive

manufacturers

and

Property

andCasualty

insurers

are

pragmatically

switching

gears.

Insurers

face

transformational

challenges,

andlucrative

opportunities

asa

triple-zero

future

(zero

congestion,zeroemissions,zerocrashes)

loomslarge

on

the

automotive

radar

screen.Our

2023

World

Property

and

Casualty

Insurance

Report

analysis

found

that

consumers

are

enthusiasticabout

the

evolution

of

transportation

and

the

increasing

array

of

mobility

solutions-multi-modal,micro-mobile,

and

shared

options.Toseize

mobility

prospects,

however,

carriers

must

invest,

strategize,

prepare,

and

implement

complexchanges

and

adopt

new

business

models.

Many

strategic

insurers

are

already

assessing

embeddedsolutions

and

modular

subscription

propositions

to

ensure

relevance

in

the

future

value

chain.

However,success

is

contingent

upon

deep

ecosystem

integration,

unique

customer

insights,

continuous

riskassessment

models

and

a

well-de?ned

technology

roadmap.The

auto

insurance-to-mobility

transition

means

the

move

from

individual

risk

coveragetoseamlessmobility

experience

solutions

enabled

by

co-design

and

innovation

with

ecosystem

partners.Transformation

can

yield

measurable

operational

bene?ts

and

unlock

revenue

growth.Ecosystem,

risk

management,

and

technological

capabilities

that

once

seemed

farfetched

will

becomefoundational

requirements

for

the

future

of

mobility.

Is

your

organization

prepared

for

this

journey?Anirban

BoseJohn

BerryFinancial

Services

Strategic

Business

Unit

CEO&

Group

Executive

Board

Member,

CapgeminiCEO,

Qorus4World

Property

and

Casualty

Insurance

Report

2023EXECUTIVESTEERING

COMMITTEETheExecutiveSteeringCommittee(ESC)

forthe16th

editionoftheWorldPropertyandCasualtyInsuranceReportincludedCxOs

andotherbusinessleadersfromInsurers,InsurTechs

andTechnologypartners,Automotives,andotherindustryin?uencers.Theyhelpedsteerourreportcontentthroughideation,hypothesesre?nement,validationofkey

?ndings,andsharingofbestpractices.ParticipantsrepresenttheAmericas,EMEA,

andAPAC

toensureamixofglobalperspectivesandexperiences.Insurance

FirmsJean-Marc

PailholHead

of

Global

StrategicPartnershipsMike

KishHead

of

Corporate

andBusiness

DevelopmentState

FarmGellert

Eduard

FabianChiefInformation

O?cer,Information

Technology,APACChubb

Asia

Paci?c

Pte

LtdAllianzLuke

HarrisVice

President,InnovationUSAATracy

RileySVP,ChiefInsurance&TechnologyO?cerWawanesa

InsuranceGiacomo

LovatiChiefBeyond

InsuranceO?cerUnipolSai

S.p.AInsurTechsand

TechnologyPartnersShaughn

McCluskeyGlobal

IndustrySpecialist

-InsuranceAWSLarry

RaskVice

President,Global

Sales

andBusiness

DevelopmentArityJean-Charles

VelgeCo-FounderQoverAutomotiveFirms,

Industry

Bodies

and

ExpertsEdouard

de

LamarzelleCEO,Stellantis

InsuranceStellantisRoger

OdleExecutive

Vice

President,Head

of

InsuranceandDistributionVanessa

GoviGroupChiefDigital

O?cerALD

SABryan

FalchukPresident&CEOPLRBAAA

-The

Auto

Club

GroupWorld

Property

and

Casualty

Insurance

Report

20235EXECUTIVE

SUMMARYThe

mobility

market

evolution

poses

and

claims

management.

One

way

to

navigate

thechallenges

and

opportunities

for

Property

and

ACES

wave

and

disintermediation

challenges

is

toCasualty

insurers.

The

automotive

industry

create

a

mobility

ecosystem

that

o?ers

modularstrives

for

a

triple-zero

future

with

zero

subscription

insurance

to

meet

customers’congestion,zero

emissions,andzero

crashes.

expectations

for

seamless

A-to-B

coverage

whileThis

vision

aligns

with

shifting

customer

delivering

di?erentiated,

value-added

services.preferences,

such

as

those

of

urbanites

who

have

However,

only

21%

of

insurers

say

they

havewoven

new

mobility

solutions

into

their

personal

advanced

partnership

capabilities.and

business

lifestyles.Our

auto-to-mobility

navigational

guideoffers

ways

to

operationalize

the

newbusiness

models

by

reassessing

insurers’

valuepropositions.

It

unlocks

ecosystem

benefits,showcases

insurers’risk

managementexpertisearound

underwriting

and

claims,

enablessustainable

value-added

services,

and

illustratesmethods

to

re-evaluate

insurance

firms’

coretechnology

layer.Mobility

market

evolution

drivesACES

and

multi-modal

premiumgrowthOn

one

side,

premiums

for

autonomous,connected,

electric,

and

shared

(ACES)

vehiclesare

poised

to

grow

eightfold

to

more

than

halfatrillion

USdollars

in2030.On

the

other,urbanadoption

ofmulti-modal,

micro-mobility,

and

Make

the

move

from

productshared

modes

of

transportation

is

on

track

todeveloper

to

solution

co-designerdouble

from

29%

today

to

58%

in

2025.Insurers

can

leverage

their

risk

expertise

andpartner

with

mobility

ecosystem

specialists

toCarriers

face

critical

challenges

to

embark

onthis

journey:

63%

of

insurers

are

concerned

aboutsuccessfully

transition

from

developing

insurancethe

adequacy

of

their

technology

capabilities

andproducts

to

delivering

mobility

experience45%

about

evolving

customer

expectations.

Newsolutions

by:business

models

and

advanced

underwritingwillbe

essential

togrowsustainablyand

ensure?

Revamping

organizational

strategy

and

cultureto

enable

rapid

innovation

and

value-alignedProperty

and

Casualty

insurer

relevance

within

aecosystem

partnerships,multi-modal

mobility

future.?

Testing

high-potential

mobility

valueShifting

from

auto

insurance

tomobility

protection

requires

newbusiness

modelspropositions

by

co-designing

innovativesolutions

with

trusted

ecosystem

partners,and?

Scaling

mobility

solutions

through

a

connectedand

intelligent

insurance

platform

thatgenerates

customer

value

by

optimizing

thetotal

cost

of

mobility.As

the

mobility

market

evolves,

carrierswill

shift

from

insuring

assets

to

protectingmobility

journeys

by

launching

new

businessmodels

focused

on

personalization.

In

fact,The

time

is

now

for

Property

and

Casualty42%

of

policyholders

want

a

single

policy

that

insurerstodrive

growth

bytaking

advantage

ofcovers

them

irrespective

of

their

mode

of

changing

customer

preferences

and

the

futuretransportation.

With

ACES

mobility

gaining

scale,

of

mobility–

is

your

organization

prepared

forembedded

insurance

models

are

increasingly

the

journey?popular,

raising

a

legitimate

concern

ofdisintermediation

for

carriers

across

the

wholevalue

chain,

including

distribution,

underwriting,6World

Property

and

Casualty

Insurance

Report

2023Mobility

market

evolution

drives

ACESand

multi-modal

premium

growthCountless

automotive

manufacturers

and

shift

to

zero

emissions.9,

10OEMs

adopted

versions

of

the

Triple-Zeroinitiative,GeneralMotorsCEOMaryBarraoutlined

future

advocates.

For

example,

the

United

Statesin

2018.

The

zero-congestion,

zero-emission,

and

plans

to

invest

USD

14.5

billion

in

EV

chargingFurther,

governments

are

also

triple-zero1zero-crash

vision

accelerated

industry

changes

infrastructure

and

components

between

2022while

creating

challenges

for

Property

and

and

2030.11

And

a

two-year

EUR

20

billion

schemeCasualty

insurers

and

risk

coverage.of

grants

and

guarantees

announced

by

theThe

automotive

industry

is

on

the

cusp

of

European

Union

in

2020

should

boost

sales

ofprofound

change.

Revenues

are

on

track

to

reach

clean

vehicles.12USD

3.8

trillion

by

2030,

up

35%

from

2020.

By

the2Changing

customer

behavior

alsofuels

transformationend

of

the

same

period,

autonomous,

connected,and

electric

vehicles(EVs)

may

comprise

about40%

of

the

market,

up

from

10%

in

2020.3,

4,

5As

part

of

our

2023

Voice

of

the

Customer5,990

Numerous

high-impact

technologies

are

(VoC)

survey

–

which

included

5,990

policyholdersreaching

maturity

and

sparking

sweeping

from

19global

markets

–

66%

of

participants

saidchanges.

Automotive

market

analysis

predicts

they

were

both

interested

in

and

supportive

ofrelativelyhighcompoundannualgrowthduring

connectedandalternateenergyvehicles.And49%customerresponses

across19markets

the

period

2022-30

for

fifth

generation

(5G)

expressed

enthusiasm

for

autonomous

vehicles.mobile

networks

(27%),

artificial

intelligenceDespite

this

sentiment,

consumers

seem(23%),

and

automotive

telematics

(21%).6,

7,

8

5G

unwilling

to

replace

cars

inthe

short-term

butstrengthens

vehicle

data-sharing

capabilities

will

add

new

mobility

options.

Survey

responsesthroughtelematics,andAIaugmentsautonomous

suggest

that

adoption

of

micro-mobility,

shareddriving

capabilities,

making

zerocongestion

and

vehicles,andmulti-modaltransportationsolutionszero

crashes

attainable.

In

addition,

despite

recent

will

double

by

2025,

accelerated

by

increasedprice

increases

expected

to

last

until

2024,

lithium-

demand

from

urban

customers,

which

we

de?neion

battery

prices

may

decrease

by

58%

by

2030,

as

individuals

residing

ina

metropolitanareaofsupporting

greater

EV

adoption

and

enabling

the

more

than

1

million

people

(Figure

1).Figure

1.

Urbanites

add

new

mobility

solutions

to

their

transportation

repertoireCustomersusingorplanningto

usedi?erentmobilityservices,%98%UrbanTraditionalpersonalcarsandmotorcycles92%98%94%Non-urban58%Micro-multi-Urban29%2Xadoptionincreasesharedmobilitysolutions34%16%Non-urbanCurrentlyPlanningto

innext24monthsSources:

Capgemini

ResearchInstituteforFinancialServicesAnalysis,2023;

World

Property

andCasualtyInsuranceReport

2023VoiceoftheCustomersurveyWorld

Property

and

Casualty

Insurance

Report

20237Vanessa

Govi,

the

Group

Chief

Digital

O?cererror.

For

example,

if

an

algorithm

fails

toperform

in

an

autonomous

car

or

when

ajourney

is

hacked

(cyber

risk).?

Liability

coverage

will

shift

from

individualpolicyholders

to

commercialclients

such

asvehicle

original

equipment

manufacturers(OEMs)

or

?eet

managers.at

French

?eet

management

?rm

ALD

SA,

said,

“Inthe

future,

the

car

will

be

just

one

element

ofamobility

solution.

And

wewilllikelyusesmaller,more

sustainable

vehicles

in

combinationwithother

means

of

transportation

to

move

aroundmore

e?ciently.”?

Protection

of

assets

–

a

motorcycle,

car,

ortruck

–

will

switch

to

insurance

of

a

customer’smobility

journey

experience

from

point

A

to

B–

and

multiple

destinations

afterward.For

instance,

German

luxury

and

commercialvehicle

brand

Mercedes-Benz

stands

behind

itsSAE

Level

3

automated

driving

function

–

and,

inMarch2022,

announced

liability

acceptance

forMobility

changes

bring

growthopportunities

for

insurersAs

the

definition

of

mobility

expands,

themobility

insurance

market

is

poised

to

doublefrom

USD

0.65

trillion

in

2021to

USD

1.38trillionin

2030

(Figure

2).13Behindthisgrowth,however,isatwo-speedjourney.

collisions

or

crashes

(in

parts

of

the

United

States)caused

by

technological

malfunctions.17?

The

traditional

auto

insurance

market

willgrow

to

keep

pace

with

in?ation

while

basingpricing

on

factors

suchas

age,

postal

code,driving

experience,

and

insurance

history.?

Meanwhile,

autonomous,

connected,

electric,and

shared

(ACES)

nominal

premiums,

basedon

real-time

data,

will

grow

eightfold

to

morethan

half

a

trillion

US

dollars,

according

to

ouranalysis.14,

15,

16Future-focused

mobility

solutionsare

disrupting

traditional

coverageas

policyholders

demand

embeddedThe

time

is

now

for

early

adopters

to

take

protection

for

theirjourney.”decisive

action

to

capture

their

share

of

the

ACESmarket

opportunity.As

ACES

mobility

goes

mainstream,

insurersLaurent

Floquetcan

expect

three

fundamental

changes:?

The

nature

of

risk

will

change

as

more

policies

CEO,

Mobility

&

Assistance,

Member

of

thecovervehicular

liabilities

in

additiontodriver

Board

of

Management,

Allianz

PartnersFigure

2.

The

mobility

insurance

market

may

double

by

2030,

driven

by

autonomous,connected,electric,

and

shared

(ACES)

mobilityMobilityinsurancepremiums,

USDtrillion0.652.1x1.38Total

marketACESpremiums0.578x0.070.58Traditionalpremiums0.811.4x20212030Sources:StraitsResearch,

Research

and

Markets,AlliedMarket

Research,

Capgemini

ResearchInstituteforFinancialServicesAnalysis,20238World

Property

and

Casualty

Insurance

Report

2023But

with

new

opportunities

comenew

business

challengesOur

analysis

indicates

that

insurers

that

wantto

take

advantage

of

this

opportunity

shouldbegin

preparing

for

aworld

in

which

connected-vehicle

data

will

swell

by

148%

between

2021

and2025.18,

19Vehicle-generated

data

puts

car

anddriverinsights

directly

into

the

hands

of

OEMs

andautomotive

manufacturers,

giving

them

anembeddedinsuranceadvantage.

By

Q3

2021,

atleast

17

OEMs

sold

connected

car

services

withdynamically

priced

insurance,

including

prominentnames

such

as

Ford,

GM,

Kia,

Hyundai,

Mercedes-Benz,

Stellantis,

Tesla,

Toyota,

and

Volkswagen.20Additionally,

due

to

privacy

concerns,18%of

oursurvey

respondents

are

unwilling

to

share

theirmobility

data

with

insurers.Most

of

the

nearly

300

insuranceexecutiveswe

interviewed

for

this

report

know

that

themore

agile

models,

shifting

from

a

monolithic

toamorecomposabletechnology

infrastructure,”said

Dror

Pockard,

Chief

Strategy

O?cer

at

TelAviv-based

Earnix

–

an

enterprise

platform

forpricing

analytics.Hence,emerging

business

models,

dynamicunderwriting,

and

advanced

technology

will

beessential

tosustainable

growth

while

managingnew

and

evolving

competition.Nearly300

mobility

future

holds

challenges.

They

saytheir

top

three

concerns

revolve

around

havingappropriate

tech

capabilities

to

seize

mobilityinsurance

opportunities,

fulfilling

policyholders’

multi-executives

modal

mobility

expectations,

and

competitioninterviewed

from

new

players

such

as

OEMs

(Figure

3)."Customers’personalizationrequirementsandcompetitive

pressure

are

pushing

insurers

towardFigure

3.

Top

challenges

insurers

faceinadapting

to

the

future

of

mobilityInsurers’topmobilityconcerns,%Technology

capabilties63%Evolving

customerexpectations45%IncreasedcompetitionMonetization42%37%Macroeconomics32%Sources:

Capgemini

ResearchInstituteforFinancialServicesAnalysis;2023

World

Property

andCasualtyInsuranceReport

2023ExecutiveInterviewsWorld

Property

and

Casualty

Insurance

Report

20239Shifting

from

auto

insurance

tomobility

protection

requires

newbusiness

modelsIn

response

to

new

mobility

solutions,

their

regulatory

frameworks

to

leverage

theseinsurance

will

transition

from

static

premiums

developments.”to

dynamic

risk

assessment

and

coverage.

Tocapitalize

on

this

transformation,

insurers

willMore

and

more

opportunities

are

opening

foradopt

new

business

models

and

unlock

theModular

subscription

insuranceinsurers

to

cover

mobility

experiences

rather

thanpowerof

personalization

across

personal

andassets

through

a

modular

subscription

model.small

commercial

lines.Insurers

co-create

a

mobility

ecosystem

withAs

part

of

the

evolution

of

mobility

insurance,products

distributed

through

existing

channelswe

have

identi?ed

three

business

models.(such

as

brokers)

and

new

channels

(such

asmobility

platforms)

toleverageawealthof

newUsage-based

insuranceThis

model

adjusts

premiums

based

on

driver

data

emerging

from

micro-

and

multi-modalbehavior

data

from

the

vehicle

ora

connected

transportation

providers.

The

aim

is

to

meetdevice.

Policies

cover

personal

injury

and

liability

customer

expectations

around

comprehensiveand

include

specialized

services,

particularly

?eet

multi-modal

liability

coverage,o?eringinsurersmanagement.

Insurers,

agents,

and

brokers

prospects

to

orchestrate

various

value-addeddistribute

the

product

–

while

underwriting

services,

including

best-route

recommendationsrisk

and

handling

claims.BigTechandInsurTech

and

risk

prevention

solutions.partnerships

enable

seamless

ecosystemModular

subscriptions

highlight

insurers’integration.

Direct

or

traditional

intermediated

advanced

risk

modelling

capabilities

tocreatechannels

provide

a

competitive

edge

through

flexible

coverage

options

and

innovativeenhanced

pricing

capability,

but

variable

supplemental

services.

Modules

–

such

aspremiums

can

complicate

agents’

remuneration.

coverage

formicro-mobility

or

shared

rides

–Additionally,

shifting

to

new

mobility

options

and

can

be

added

to

an

existing

policy

or

boughtchanging

policyholder

expectations

may

?atten

as

standalone

products

to

offer

insurers

newgrowth

of

standalone

usage-based

insurance.revenue

streams.Embedded

insuranceAs

ACES

mobility

options

become

increasinglyprevalent,

embedded

insurance

follows

suit.This

model

is

already

experiencing

acceleratedmarket

adoption,

reducing

acquisition

costs,and

accelerating

economies

of

scale

as

insurersbearthe

risk

and

manageclaims.

Intermediateddistributors

–

OEMs,

vehicle

marketplaces,and

fleets

–

are

becoming

primary

customertouchpoints.As

new

players

eye

opportunities

inunderwriting

and

claims

handling,

incumbentsface

reduced

margins

and

the

potential

loss

ofmind

andwalletshare

as

they

lose

policyholdervisibility.

The

embedded

insurance

model

ispoised

to

become

more

prevalent,

and

future-proofing

carriers

are

acting

now

to

navigatethe

new

paradigms.

Saad

Mered,

CEO

at

ZurichCanada

notes

that,

“Insurers

worldwide

shouldwork

with

regulators

to

enable

embeddedinsurance

or

early-stage

modular

subscriptionbecause

many

countries

have

yet

to

update10World

Property

and

Casualty

Insurance

Report

2023Modular

subscription

insurance

has

urban

commuters

coveredIn

modular

subscription

insurance,

data-driven

insights

enable

the

insurer

to

identify

protection

gaps

in

travel

journeysand

the

customer

has

the

option

to

activate

or

opt

out

of

the

additional

coverage.Aided

by

technology,

subscriptions

empower

customers

to

optimize

their

unique

A-to-B

journey

through

value-addedservices

and

personalized

solutions.During

multi-modal

journeys,

customers

may

face

a

variety

of

risks

(see

example

below).

The

modular

subscriptionmodel

o?ers

peace

of

mind

while

providing

appropriate

coverage.Riskscoveredby

modularsubscriptionduringamulti-modaljourneyPublic

transportation

to

city

center

(metro,

bus

etc.)?

Publictransportliabilities?

Delays?

Propertylossordamageduetonegligence?

Theft,loss,ordamageofpersonalbelongingsMicro-mobilityforlast-mileconnectivity(bicycles,e-bikesetc.)?

Personalliabilitiesduetousageofe-bikes?

Propertylossordamageduetonegligence?

Theft,loss,ordamageofpersonalbelongings?

Personalinjuries?PersonalinjuriesPersonal

car

to

closestpublictransportation?

Personalcarliabilities?

Damagetocarduetoaccidents?

Personalinjuries?

CyberriskHOMEWORKSharedmobilityforlateeveningjourney

to

pick

up

car

(Uber

etc.)Personalcarbackhome?

Risksarisingduetousageoftaxiandsharedvehicles?

Personalliabilitiestowardstaxiandsharedvehicles?

Theft,loss,ordamageofpersonalbelongings?

Personalcarliabilities?

Damagetocarduetoaccidents?

Personalinjuries?

Cyberrisk?

PersonalinjurySource:

CapgeminiResearchInstituteforFinancialServicesAnalysis,2023As

an

example

of

modular

subscription

services,

and

the

purpose

of

users’

journeys

to

createBelgium-based

platform

partner

Sentiance

supports

user

profiles

based

on

real-world

mobilitycarriers,

InsurTechs,

automotive

providers,

and

other

behavior.

As

a

result,

insurers

can

boost?nancial

service

?rms.

Its

platform

turns

datainto

customer

retention,

develop

personalizedactionable

insights

that

help

detect

multi-modal

trips

engagements,

and

drive

dynamic

pricing.Bundling

coverage

across

di?erent

modesof

transportation

may

pose

challenges

forInsurers

have

the

opportunity

togoinsurers,

mainly

concerning

personal

injuries,liabilities,

and

even

property

loss

or

cyberrisk.

Carriers

laying

the

groundwork

formodular

subscriptions

must

also

prepare

theirdistribution

channels

to

sell

mobility

solutionsversus

traditional

automotive

insuranceproducts.beyond

embedded

insurance,

ingestingmultiple

data

sources

toprovide

end-endsolutions

that

are

more

holistic.”Laura

DrabikChief

Evangelist,

GuidewireUSAThese

three

business

models

will

modifyinsurance

fundamentals

as

coverage

pivotsfrom

individual

assets

to

mobility

experiences.World

Property

and

Casualty

Insurance

Report

202311Fine-tune

business

strategy

forrelevancy

in

the

future

mobilityecosystemToe?ectively

set

the

stage

for

mobility,

it

maybe

necessary

formanyinsurers

toreassess

theirbusiness

strategy.

Tohelp

insurers,

we

developeda

navigational

guide

for

an

auto-to-mobilitytransition

built

on

value

proposition,

ecosystems,risk

management

and

technology

(Figure

4).When

an

organization’s

strategic

goalsfocus

on

evolving

customer

expectations

andaculture

thatenablesthe

evolution

to

mobility,value

propositions

are

augmented.

Start

bystrengthening

ecosystem

capabilities

to

enhancedistribution,

driving

better

insights

through

real-time

data,

and

engaging

with

regulators

to

bridgenew

mobility

protection

gaps.Risk

carriers

must

prioritizethree

critical

customer

needs

toremainrelevant

inthe

new

mobility

paradigm–

simple

processes,

hassle-free

claimsmanagement,