Spotted at CES 2023 —
New SMA Blog by Mark Breading, Partner, Strategy Meets Action —
CES has become one of the biggest auto shows in the world – but rather than focusing on new models and styling, the orientation is toward the most advanced technology capabilities and the user experience. Among the many sessions and exhibits featured this year, I spotted four interrelated themes. I discuss these trends in this blog, which will be followed by a second part examining the implications for property & casualty insurers.
Mobility explosion:
There continues to be an expanded emphasis on moving people and goods – whether on land, air, sea, and even space – via new and enhanced modes of transportation. This is true for both public and private forms of transportation, whether traveling across the world, across town, or across the room. Micro-mobility is especially important and is growing rapidly. There were so many displays of electronic bikes, scooters, wheelchairs, golf carts, and other devices for individuals, along with electric and/or autonomous vehicles for public transportation or commercial use. And those are just the ones for movement on land. Flying cars (yes, they are becoming real), autonomous vessels, and electric airplanes were also featured. Especially interesting with a potentially large impact was the first all-electric commuter aircraft by Eviation. These aircraft are targeted initially at short flights from small regional airports (24% of all flights are less than 250 miles and thousands of small regional airports are underutilized today).
Electrification acceleration:
The move to electronic vehicles (EVs) is inexorable and gaining steam. You probably would not need to visit CES to identify this trend. EV legislation is expected to accelerate the market away from gas-powered vehicles. As evidenced in the discussion of the mobility explosion, most of the new mobility options have an electric-first design approach, which will force insurers to think about new coverage options and liability implications in the future. The critical success factor for broader adoption over time will be the build-up of the charging infrastructure – and there were new options and partnerships announced in this space as well.
Sustainability focus:
The move to electrify transportation is aimed at sustainability, although the design and manufacturing of new types of vehicles and vessels have other sustainability dimensions. The notion of circularity is emerging in the vehicle manufacturing world. In its ultimate form, it dramatically reduces or eliminates the consumption of finite resources through recycling and reusing materials. Reducing pollutants is also a vital aspect of sustainability and circularity.
Digital experience:
For several years, a major theme among OEMs has been to enhance the in-vehicle experience through digital capabilities. This may take the form of augmented reality heads-up displays, enhanced voice commands, and access/integration with social media, commerce, and digital payments.
What do all these trends and developments mean for the insurance industry? The next installment in this blog series will explore the implications for the P&C insurance industry.
About The Author
Mark Breading is known for his insights on the future of the insurance industry and innovative uses of technology. Mark consults with insurers and technology companies on forward-thinking strategies for success in the digital age. His inventive methodologies, fresh ideas, creative conceptualizations, and ability to incorporate InsurTech and transformational tech in business strategies are unparalleled. He also leads SMA’s research program, publishing 25-30 research reports per year and conducting various custom research projects for insurer and vendor clients. His thought leadership in the areas of InsurTech, transformational technologies, customer experience, and digital strategies has earned him a ranking of one of the “Top Global Influencers in InsurTech” by InsurTech News and Onalytica and a place in the ten finalists for the “Top Global IoT in Insurance Influencer Award.”
Before joining SMA in 2009, Mark spent 25 years with IBM in roles including the Global Insurance Strategist and Director of Global Financial Services Executive Conferences in addition to leadership roles in consulting and marketing. Mark co-developed IBM’s Account Based Marketing program and led the global project office to implement ABM across all industry verticals worldwide. Mark has held both technical and business roles in sales, consulting, marketing, and business strategy and has advised insurers around the world for almost 30 years.
About SMA, a ReSource Pro company
At Strategy Meets Action, our clients advance their strategic initiatives and accelerate their transformational journeys by leveraging our forward-thinking insights, deep vendor knowledge, and vast industry expertise. Strategy Meets Action is an advisory firm that works exclusively with insurers, MGAs, and vendors in the P&C market. For more information, visit www.strategymeetsaction.com.
About ReSource Pro
ReSource Pro brings integrated operational solutions to insurance organizations to improve growth, profitability and insurance outcomes. Headquartered in New York, ReSource Pro’s global service centers address client operational needs around the clock. Recognized as an industry thought leader and listed as one of Inc. 5000 Fastest Growing Private Companies annually since 2009, the company is renowned for its focus on innovation, service excellence and trusted partnerships, and its unique productivity platform for insurance operations. More than 5,000 ReSource Pro employees provide dedicated support to hundreds of insurance organizations, consistently achieving a +97% client retention rate over a decade. For more information, visit www.resourcepro.com.
SOURCE: Strategy Meets Action (SMA)
