Future of General Insurance Industry

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Future of General Insurance Industry
The need to be protected can be traced back to
being as old as the history of human existence.
It started with the discovery of fire, finding
shelter for ourselves then further graduated
towards setting up communities, villages and
civilizations. The fundamental thought behind
these was to stay together and protect each
other. And to ensure that in our time of need we
have someone to help us and be with us. The basic
idea is to provide protection if something goes
wrong. This is essentially what the principle
of insurance is all about. But as societies
started expanding it was getting difficult for
smaller communities to take the responsibility of
bigger risks and thats how the concept of
insurance was conceived.
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Need for Security When we talk about the future
of insurance, we have to clearly understand that
the need for security will always exist and human
beings will continue to live for as long as this
planet continues to be liveable. Thus
inevitably insurance will definitely be around
for as long as human beings will survive. The
world around us is evolving, be it business,
customer needs, distribution network etc. But one
thing which remains constant is human emotions,
bonding and our need to stay protected. If we
clearly understand these fundamentals, itll be
easier for us to see how the future of insurance
will look like. Insurance is a service industry
and it has to place the customer at the center of
all its functions. In its initial phase, the
insurance industry only provided protection
against particular incidents such as fire or
accidents.
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Future of Insurance Much is being talked about
driverless cars being the next disruptive
innovation in the automobile industry. In an
environment where driverless cars become a
regular occurrence, who would be held responsible
for an accident? Not the driver of course but the
manufacturer can be held responsible. From
motor insurance which covers the damage to the
vehicle, the cover will shift to a liability
insurance for the manufacturer. Weve heard
about the recent case wherein the driver of a
Tesla car was killed in a road accident after its
autopilot mode failed to recognize the
approaching truck. 
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Reportedly the driver was watching a Harry Potter
movie and wasnt manually controlling the car
when the crash happened. In such a case it is
very likely that the car manufacturer would be
held liable for the crash. Today automobile
insurance constitutes half of the general
insurance business globally. It is likely that
this may suddenly reduce to a very small
percentage. But this trend shouldnt come to us
as a shock. Because if we look at the history,
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