This implies that in the future, behaviour may no longer be sufficient indicators of risk, and motor insurance may well shift to become liability insurance bought by car manufacturers. Third, dynamic products. The global insurance industry today, has shrunk in terms of its percentage of global economic activity insured; some estimates put the figure at as little as 10% of global corporate risks covered by insurance. Clearly, risks landscapes are rapidly changing and insurers must look beyond traditional products, and innovate to address new and emerging risks. Yet, innovation eschews the traditional, and thus one of the most significant challenges of established insurers in this area comes from small challengers with big ideas: start-ups. Start-ups are nimble, hungry, and more often than not, represent the very consumers they seek to solve problems for. In the insurance space, these players are moving to directly address the consumer’s problem, which at its core, is one of managing risk, and not simply monetary coverage. We already see this happening in health insurance, where start-up insurers are creating new tools such as doctor and drug research, fitness tracking, and telemedicine5 tools6 that can interface with each other. In return, policyholders are rewarded with an effective, convenient and holistic healthcare package alongside their health insurance policy. Seizing opportunities using technology and innovation With the digital revolution rapidly underway, insurers must adapt quickly to transform their mind-sets and business models.
Conclusion •  the Eurosystem is not only helping to create a more integrated financial market but is also contributing to greater financial stability by ensuring a strong and efficient European market infrastructure;  BIS central bankers’ speeches  3  •  Looking to the future, the Eurosystem remains committed to these objectives and will seek to exploit technological advances and innovation while maintaining safety, reliability and, ultimately, confidence and stability. 4  BIS central bankers’ speeches