Innovations in InsurTech
Insurtech is driven by the strong belief that the insurance industry needs to be reinvented and modernised to fit the ever-evolving needs of today’s customer. Across each industry, Covid-19 has demonstrated inefficiencies and risks with everyday operations and highlighted the urgent need for companies to embrace collaborations with technology companies instead of viewing them as the competition.
According to Willis Tower Watson (WTW), there is an argument for the fact that this digitisation is so vital for insurance companies to survive that the term ‘insurtech’ will rapidly become redundant. Technology will soon be a consistent and innate part of the insurance industry. It is, according to WTW, clear that companies need to act now to stay relevant in 1, 5 or 10 years’ time. It takes time to introduce digital ways of working, particularly into legacy systems, and to forge meaningful partnerships with fintechs.
We’ve taken a look at the latest research in the Insurtech sector and the key priorities for the industry:
Insurtech’s place in a COVID-19 world
According to KPMG, insurance companies have been very keen to keep their relationship going with existing insurtech providers. However, it is likely to be a difficult market for insurtechs looking to break into the sector as businesses exercise caution in the face of economic uncertainty. Operational efficiency is a key priority for insurers looking to innovate including improved digital customer interaction and better capture and analysis of data.
InsurTech investment surge
A record $5 billion was invested in Insurtech in 2019 with a shift focusing on Life and Annuity innovation. New insurance technology has allowed traditional life insurers to use third party data, advanced analytics and predictive modelling to expedite the underwriting and policy process. Deloitte looks at the new opportunities Insurtech may add to improving the customer experience and strengthening such relationships.
The companies all players in the insurance industry needs to know about
The report from the Global Insurtech summit looks at the top 100 companies making breakthroughs in the industry. Fintech Global Director Richard Sachar states that the companies comprise a number of different solutions including “marketing & distribution, underwriting & risk rating, claims and customer retention” and that they “incorporate the latest technologies, such as big data analytics, blockchain, artificial intelligence, the internet of things and bot-assistants.” Take a look at the list here:
PWC focuses on the fact that legacy institutions are quickly realising that they need to team up with techy-savvy newcomers to stay relevant in an evolving market. Such partnerships need a strong plan with a clear strategy for growth. Amongst many growing priorities for consumers is the need for expediency. People want instant credit decisions, a quick underwriting process and innovative products – when used intelligently, insurtech can help to achieve these objectives.
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