
The current economic climate will mark the trends for 2023. As SMEs navigate new challenges, insurance plays a critical role in helping them to keep operating successfully: from protecting against potential losses to managing risks and complying with regulations.
Today, we will look at these 4 trends for 2023 and how they will shape how SMEs purchase and manage their insurance coverage:
1. The increasing use of AI
AI is being used in a variety of ways recently, and, it has also arrived in the commercial insurance sector. Insurance professionals are using it to analyze large amounts of data to base their risk assessment and premium setting on real-time data.
Additionally, AI can be used to automate routine tasks which, as mentioned by Accenture in this report, an estimated efficiency loss of $85-$160 billion is expected over the next five years due to insurance professionals spending 40% of their time on non-core activities.

2. Focus on risk management
As SMEs face an increasingly complex risk landscape, there is a growing recognition of proactive risk management. This includes internal controls and processes to reduce losses.
Also, insurance companies are increasingly offering risk management services to help SMEs identify and mitigate potential risks beforehand.
3. Greater use of data and analytics
Insurance companies are using data and analytics to better understand their clients, automate processes, and price risk, among other uses.
In other words, by collecting and analyzing data on a wide range of factors, insurers can more accurately assess the probability of losses and set premiums accordingly. This trend is expected to continue in 2023, as insurance companies increasingly rely on data and analytics to make underwriting, risk, or pricing decisions.

4. The rise of InsurTech
InsurTech companies are disrupting the traditional insurance industry by using technology to streamline the commercial insurance value chain.
Also, many InsurTech companies offer digital platforms that allow insurance professionals to easily classify clients, get the most updated data, or customize policies. The increased adoption of InsurTech solutions is making insurance carriers increase by 10 the ROI.
Overall, the commercial insurance industry is undergoing significant change in 2023. If you are an insurance professional seeking to stay up-to-date on the latest developments, it is important to be aware of these trends and how they may impact your carrier.
Stay on top of the latest insurance trends by contacting us at wenalyze@wenalyze.com now.