How are InsurTech innovations changing the shape of the insurance industry?
Waterstreet has revealed its vision of the future of insurance in its study, shedding light on the transformative impact of innovations in insurance technology, artificial intelligence (AI), machine learning, and blockchain on the industry landscape.
The vast majority of survey respondents believe that insurtech startups are the driving force behind the industry’s development, with 59% supporting this belief. This underscores the growing influence of technology initiatives in changing the insurance sector (see the ranking of the largest insurtech unicorns by capitalization and venture capital raised).
The study highlights the consensus among 47% of respondents who believe that artificial intelligence, machine learning, and blockchain are the main changes in the property and casualty (P&C) insurance industry. These technologies are expected to revolutionize various aspects of the industry, from underwriting to claims processing.
Effective risk mitigation is a key strategy for profitability, with 41% of industry leaders citing it as a key driver of growth. Insurers are focusing on predictive data analytics tools, such as safe driving apps and flood detection sensors, to drive proactive risk management.
In a rapidly evolving technological environment, reliable customer support is becoming a critical factor in facilitating the transition to new systems and products. The study shows that 45% of respondents prefer comprehensive customer support during the stages of technological transition.
The study sheds light on the development of policy administration systems (PAS). Previously, insurance companies relied on their own PAS, but the study found a close connection between those who choose to update PAS internally (43%) and those who seek external expertise (40%) to keep up with changing industry dynamics.
Integration of external data is becoming a cornerstone of a comprehensive risk assessment, particularly with geographic data that provides insights that go beyond traditional risk assessment methods. Notably, an overwhelming 80% of tech leaders emphasize the importance of integrating digital payments in the coming years.
Business Intelligence (BI) is becoming the main driver of the industry’s evolution, helping to harness the potential of data. With 63% of CTOs valuing mobile app compatibility for real-time access to insurance contracts, the industry is moving toward ease of use and user-friendly interfaces.
The Waterstreet study paints a vivid picture of the rapid development of the insurance sector. With tech innovations, artificial intelligence and data integration at the forefront, policyholders can anticipate improved communication, streamlined claims processes and an increased focus on customer satisfaction.
As the industry continues to embrace technological advances, it remains poised to deliver unmatched accuracy, efficiency and customer-centric services in the years ahead.