Digital services could displace $280B of traditional premiums by 2025

“Insurers who move from traditional to technology-led offerings that are better integrated with customer data are better positioned to lead; others risk losing revenues to digital-first competitors and new entrants,” said Kenneth Saldanha of Accenture. (Credit: Rawpixel.com/Shutterstock.com)

Demand for digital insurance tools and online distribution is anticipated to displace as much as $280 billion of current insurance revenue by 2025, according to Accenture, which noted current customer retention levels will be challenged by digital disruptors.

As consumers renew policies with data-driven offerings, up to $140 billion of current insurance revenue will likely shift to tech-enabled products. An additional $140 billion of current revenue is expected to transition from traditional distribution models to digital distribution experiences as shoppers move toward online channels and third-party platforms, according to Accenture.