Insurtech (or Insuretech) represents the latest wave of innovation for the insurance industry. While it’s been around for a while, the past year has seen a significant acceleration in its adoption across the sector. As a result, it’s shifting from a disruptive, novel concept to a must-have component of any successful company’s strategy.
Similar to how fintech has revolutionized the financial sector, insurtech is leveraging the latest technology and AI developments to modernize the insurance business model. Companies that focus on insurtech recruiting in the first quarter of 2022 will be better positioned to become thought leaders in the insurance sector, provide superior services to clients, and maximize their earnings in the coming months and years.
Whether you’re a startup looking to compete with insurance giants or an established corporation hoping to update your processes, insurtech is an appealing solution. As with any developing technology, it’s important to stay on top of the latest trends and news to make the best use of these innovative systems. Let’s take a look at what’s happening now in insurtech so you can stay in-the-know.
Predictive Analysis Is Giving Companies a Competitive Edge
Predictive analysis is nothing new for insurance companies. The ability to collect and analyze data to predict customer behavior and needs is crucial for any business in the insurance sector, and insurtech allows you to make better predictions faster than by using traditional methods.
A study by Valen Analytics found insurance companies that use predictive modeling grew their direct written premiums by 53%, roughly 35% more than the market average over the same time span. Their loss ratios also improved by between 3% and 9% compared to companies that failed to implement these processes.
The Use of AI Is Expanding
In a March 2021 article by McKinsey and Company on the future of the insurance industry, AI was cited as the number one disruptive factor that will spur significant changes for both companies and customers. Large consumer insurance companies like Progressive and Geico are already utilizing this technology in the form of apps that track customer behavior to personalize their premiums and coverage. The adoption of these technologies has only accelerated over the past two years as the Covid-19 pandemic changed how people interact with their world.
There were 4.2 billion voice assistants in use in 2020, and this number is expected to double by 2024. Along with changing how customers expect to engage with companies, this has created a mountain of new data that can be leveraged to gain new insights into customer behaviors, letting companies make more accurate data-based decisions about what services to offer and what premiums to associate with them.
Historic Patterns Aren’t the Indicators They Used to Be
The old way of thinking in the insurance industry used data from the past to predict what would happen in the future. In 2022, however, it’s becoming increasingly clear that the “new normal” of coming years won’t always align to the truisms and expectations many relied on in 2019 and before.
This is certainly related to the adoption of more smart technology that we noted above. Smart sensors and other devices connected to the Internet of Things aren’t just useful to collect more data. These devices are interactive, allowing companies to nudge and change customer behavior at the same time customer habits are altering the services offered by companies. It’s yet to be seen how this more symbiotic customer/company relationship will evolve, but it’s absolutely certain that the patterns of the future will be different than those followed in the past.
Embedded Insurance Is Becoming Scalable
This is another aspect of insurtech that’s existed for some time but is taking on a new life thanks to new technology. Common past examples of embedded insurance usually accompanied large purchases, like device protection that comes with a computer or travel insurance added on to a flight.
Today’s technology allows more automation of the embedded insurance process. This cuts its costs for implementation, ultimately lowering costs on the consumer end and making it a more convenient and feasible option for a wider variety of purchases and activities. Digitization of embedded insurance makes it faster and easier for the end user to personalize their protection, increasing its desirability and making it more feasible to offer on a larger scale.
The Bottom Line on Insurtech Trends
As we said before, the insurtech sector is rapidly evolving. Staying current with the trends as they develop is key to keeping up with these developments and optimizing your insurtech implementation. If you haven’t yet considered how machine learning, AI, and other technologies can improve your operations, now is the perfect time—and follow
Insurtech (or Insuretech) represents the latest wave of innovation for the insurance industry. While it’s been around for a while, the past year has seen a significant acceleration in its adoption across the sector. As a result, it’s shifting from a disruptive, novel concept to a must-have component of any successful company’s strategy.
Similar to how fintech has revolutionized the financial sector, insurtech is leveraging the latest technology and AI developments to modernize the insurance business model. Companies that focus on insurtech recruiting in the first quarter of 2022 will be better positioned to become thought leaders in the insurance sector, provide superior services to clients, and maximize their earnings in the coming months and years.
Whether you’re a startup looking to compete with insurance giants or an established corporation hoping to update your processes, insurtech is an appealing solution. As with any developing technology, it’s important to stay on top of the latest trends and news to make the best use of these innovative systems. Let’s take a look at what’s happening now in insurtech so you can stay in-the-know.
Predictive Analysis Is Giving Companies a Competitive Edge
Predictive analysis is nothing new for insurance companies. The ability to collect and analyze data to predict customer behavior and needs is crucial for any business in the insurance sector, and insurtech allows you to make better predictions faster than by using traditional methods.
A study by Valen Analytics found insurance companies that use predictive modeling grew their direct written premiums by 53%, roughly 35% more than the market average over the same time span. Their loss ratios also improved by between 3% and 9% compared to companies that failed to implement these processes.
The Use of AI Is Expanding
In a March 2021 article by McKinsey and Company on the future of the insurance industry, AI was cited as the number one disruptive factor that will spur significant changes for both companies and customers. Large consumer insurance companies like Progressive and Geico are already utilizing this technology in the form of apps that track customer behavior to personalize their premiums and coverage. The adoption of these technologies has only accelerated over the past two years as the Covid-19 pandemic changed how people interact with their world.
There were 4.2 billion voice assistants in use in 2020, and this number is expected to double by 2024. Along with changing how customers expect to engage with companies, this has created a mountain of new data that can be leveraged to gain new insights into customer behaviors, letting companies make more accurate data-based decisions about what services to offer and what premiums to associate with them.
Historic Patterns Aren’t the Indicators They Used to Be
The old way of thinking in the insurance industry used data from the past to predict what would happen in the future. In 2022, however, it’s becoming increasingly clear that the “new normal” of coming years won’t always align to the truisms and expectations many relied on in 2019 and before.
This is certainly related to the adoption of more smart technology that we noted above. Smart sensors and other devices connected to the Internet of Things aren’t just useful to collect more data. These devices are interactive, allowing companies to nudge and change customer behavior at the same time customer habits are altering the services offered by companies. It’s yet to be seen how this more symbiotic customer/company relationship will evolve, but it’s absolutely certain that the patterns of the future will be different than those followed in the past.
Embedded Insurance Is Becoming Scalable
This is another aspect of insurtech that’s existed for some time but is taking on a new life thanks to new technology. Common past examples of embedded insurance usually accompanied large purchases, like device protection that comes with a computer or travel insurance added on to a flight.
Today’s technology allows more automation of the embedded insurance process. This cuts its costs for implementation, ultimately lowering costs on the consumer end and making it a more convenient and feasible option for a wider variety of purchases and activities. Digitization of embedded insurance makes it faster and easier for the end user to personalize their protection, increasing its desirability and making it more feasible to offer on a larger scale.
The Bottom Line on Insurtech Trends
As we said before, the insurtech sector is rapidly evolving. Staying current with the trends as they develop is key to keeping up with these developments and optimizing your insurtech implementation. If you haven’t yet considered how machine learning, AI, and other technologies can improve your operations, now is the perfect time—and following up on the trends discussed in this article is a great place to start.
ing up on the trends discussed in this article is a great place to start.