US premiums are expected to fall as the industry adopts technology to reduce distribution costs, according to insurance exchange MarketScout.

Property and casualty insurance has the highest distribution expense of almost any financial services industry, it says.

But rapid advances in technology have made it possible to “reformat” distribution models.

“By utilising new tech-enabled distribution, underwriters are ultimately going to reduce acquisition expenses, which will enable them to offer the consumer a lower premium,” MarketScout CEO Richard Kerr said.

“The end result will be a win-win: a net premium reduction for the insured and an increase in return on equity for the insurance company.”