_ Future trends shaping the insurance sector: Knight Frank launches 2019 report

The report is an essential read for anyone advising occupiers from the insurance sector or landlords who want to attract insurance companies into their buildings.

The interactive report provides full exposure to the scale of structural change and transformation happening in the insurance sector, expressed through five key trends.

It concludes with six key real estate implications. The report also includes an overview of the top global markets for the insurance sector, a guide to some of the top insurance innovation labs operating today and a map of recent insurance company relocations.

The five trends are:

1. Navigating a new path to growth – Insurers will pivot business models towards growth opportunities emerging from new geographical markets and product types. 
2. Revive to survive – Multiple disruptive forces threaten traditional insurance business models, necessitating a rapid and transformational response in order to survive or remain relevant. 
3. Big data as the route to out-performance – Big data enables the greater customisation and accuracy of insurance products.  Achieving the full benefits will require cross-sector partnerships and significant investments in data, infrastructure and talent. 
4. CX is integral to success – In an increasingly crowded market-place it will be the front-end customer experience that will be the point of differentiation. 
5. Back to front office – The path to becoming a digital, data-led, leaner, agile and customer-centric organisation will require a fundamental rethink of the insurance value chain.  This will blur the traditional distinctions between front, middle and back offices.

The changing dynamic of the insurance sector will be reflected in the future real estate decision making of those active in, or entering into, the sector.

We anticipate six key property implications: 

1. Face-to-Face Space - Have the right spaces for face-to-face connections between colleagues and customers, as technology removes process driven work and value is created from continual innovation.
2. Back to front office - Review current real estate locations to ensure they are aligned to the changing scope and importance of different corporate functions.
3. Spaces for ideas - Create the right physical spaces to drive innovation. Seek locations that are supported by an innovative, academic infrastructure and have a strong talent pool.
4. A workplace for all ages - Adopting the mantra of a great customer experience starts with a great employee experience, seek workplaces that accommodate the work and life preferences of all employees. Amenity will be crucial.  
5. Carry on clustering - Cluster together with peers, customers, third-party providers and other partners to thrive in the broader insurance ecosystem.
6. Perfect the portfolio - Deliver a platform that enables the business to pursue growth opportunities, while simultaneously right-sizing real estate portfolios within non-core markets.

In summary, it is all change in the insurance sector. Understanding the scope and scale of this transformation will be fundamental to delivering robust and future-proof real estate strategies. This report is designed to be an essential guide in doing just that.

View key findings of the report here.