There is no doubt that with the digitalization factor gaining terrain across industries, the insurance sector is no exception to the norm. The current landscape has definitely had a significant impact on the entire business environment, changing the rules of doing business and boosting the technological advancements for insurers worldwide.
On the other hand, customer expectations, especially in Retail, are now being shaped by digital experiences with tech-led companies in other industries. For traditional insurers, this shift in market dynamics could only be translated into the need to embrace disruptive technologies like artificial intelligence (AI) and big data analytics. Digitalization is the way to move forward and remain competitive on the market.
How can we really translate this technological impact? And why is InsurTech so important nowadays? These two questions are equally important and we are going to explore answers and practical examples in the infographic below.
Conclusion
As the traditional insurance marketplace evolves on its digital transformation journey, InsurTech opportunities are fueling the creation of a more resilient future for clients, companies, and communities. More and more retail insurers nowadays are leveraging innovative technologies and use of data to promote the development of insurance products that are responsive to emerging risk, are accessible and highly customizable.
In other words, InsurTech is powering the digital evolution in the insurance market. By unlocking this untapped potential, new tech opportunities are reshaping the world of insurance, powering game-changing solutions that optimize business processes, allow for cost savings and deliver cutting edge customer experiences.
As a data analytics, software engineering and technology consultancy group, we take an interest in keeping our customers and partners updated with the latest trends in the insurance industry. Whether you are an Insurance Carrier, a Broker or a Managing General Agent (MGA), our digital insurance software solutions and services will help you optimize your business performance for enhanced efficiency with new technologies.
Get in touch to help your organisation accelerate growth with our custom data-driven services.
Infographic Transcript
| InsurTech means the combination of insurance and technology to bring game-changing solutions into the business. | By 2023, the global InsurTech market is expected to reach $1,119.8 million at a CAGR of 41%. |
Interesting insights on how insurance is embracing digitization
| 96% of insurers believe digitization is fast becoming an integral part of the insurance industry |
AND YET… | …76% of insurance executives agree their employees are more digitally mature than their organization |
| 61% of customers confirmed they prefer to check their insurance application online | …9/10 insurers are struggling to develop the required technological infrastructure | |
| 79% of insurers say advanced data management capabilities are important | …only 37% have a concrete digital transformation strategy in place |
Growth drivers for InsurTech innovation
96% of insurance executives reported that technologies
accelerate innovation in their organizations
| SMAC Technologies | Social Mobile Analytics Cloud | 82% of insurance executives agree that the SMAC combination has become part of their core technologies |
| DARQ Technologies where do insurers expect to see the highest impact by 2022? | 42% – Artificial Intelligence (AI) 20% – Distributed Ledgers/Blockchain 19% – Extended Reality (XR) 18% – Quantum Computing | 7/10 of insurance executives anticipate that the DARQ combination will transform their organizations by 2022 |
Impact of social distancing on InsurTech growth
| Digital insurance becomes the new norm, boosting the shift from physical sales towards online sales | Insurers are using data analytics to advance customer-centricity and reduce mismatch of insurance options | The incorporation of AI-powered tools helps insurance companies identify new markets of uninsured or underinsured prospective customers |
Opportunities generated by the most popular InsurTech trends
| #1 – Artificial Intelligence | Opportunity to automate repetitive processes Deploying AI-powered bots that review claims autonomously will save loads of manpower resources while also providing instant claim settlement for customers |
| Insurance tech firms employ 58% of their AI power to enhance customer experience | |
| #2 – Big Data Analytics | Opportunity to provide personalized insurance services A life insurance based on Big Data can become more personalized by taking into account not only the customer’s medical history but also habits detected by activity trackers |
| 36% of executives in the insurance sector report that their companies can utilize insights from new data sources | |
Examples of game-changing solutions created by InsurTech
| ● Predictive analytics used for customer acquisition, risk assessment, and policy development | ● White-label platforms that allow brokers to sell short-term insurance products via omnichannel |
| ● Parametric insurance solutions that leverage real-time Big Data to provide faster remediation to customers | ● Computer vision with geospatial imagery solutions to improve underwriting quality and efficiency |
Top reasons to embrace InsurTech
| ● Make underwriting and actuarial decisions faster and more efficiently | ● Deliver a tailored customer experience |
| ● Unlock the potential of advanced analytics | ● Drive cost savings with greater operational efficiency |
90% of insurance executives agree that the integration of hyper-personalization and real-time processing is the next big wave offering competitive advantage
Resources:
- https://carsurance.net/blog/what-is-insurtech/
- https://www.capgemini.com/news/world-insurtech-report-2019/
- https://insuranceblog.accenture.com/6-key-statistics-from-technology-vision-2019-for-insurance
- https://thinkjets.com/5-most-crucial-insurtech-trends-of-2020/
- https://4tifier.com/what-is-insurtech-what-you-should-know-about-emerging-technologies-in-the-insurance-sector/
- https://www.prnewswire.com/news-releases/impact-insurtech-report-predictive-data-and-historic-shifts-in-global-risk-are-driving-insurtech-and-transforming-the-insurance-industry-300968331.html
- https://www.pwc.com/ee/et/publications/pub/blockchain-for-reinsurers.pdf
- https://datafloq.com/read/big-data-changing-insurance-industry/6425
