Insurtech has become a major part of the insurance market, with record-breaking amounts spent on technology-based innovations that can revolutionise the sector. It's an area ripe for investment – with more than $1bn (£760m) spent every month on investment into insurtech startups in 2021, according to reinsurance broker Wills Re. The momentum that carried insurtech through 2021 is forecast to continue in 2022, with plenty of areas within the sector ready for disruption. But what should you be looking out for as the next big thing? Here are five tech trends that could transform the way we buy, sell and claim on insurance.
Lloyd's and the London market has a long and well- earned reputation for product innovation. It created the first ever marine insurance product back in Edward Lloyd's famous coffee shop over 325 years and has remained at the forefront of product, if not technology, innovation ever since. Its continuing ability to remain at the forefront of product innovation will define its future. In a rapidly changing world, the demand for greater certainty increases and that's what insurance is designed for. But it follows that the increased speed of change requires from the insurance industry a commensurate evolution in insurance product and that requires understanding what the future holds and the role that insurance can play within it.
Zelros is a B2B independent software vendor specialized in the insurance market. Their flagship solution currently focuses on helping insurance advisors to better serve their clients by up-selling and cross-selling personal insurance products thanks to artificial intelligence and machine learning. Their primary focus is to become the leader of Artificial Intelligence for insurers by increasing the performance of their client's employees. The young company has developed a virtual assistant using artificial intelligence technologies to support insurance company employees in two specific segments: sales support and claims management. Zelros already covers two use cases: increase sales efficiency and enhance customer relationships.
The insurance sector is now seeing the same dynamics already experienced in many other sectors, including financial services: with startups and other tech firms innovating one or more steps of the value chain traditionally belonging to financial institutions. InsurTech has seen extremely important investments in the last years, and the word "disruption" is coming out frequently on the insurance debates. But I consider it a joke for an industry conference to show a picture of a newborn and sell it as the last intermediary or the last client to have purchased an insurance policy. One UK insurer MORE TH N addressed the claims related to the obesity of the insured dogs. They invented a value proposition that provides the insurance coverage adding all the preventive treatments your dog needs, a monthly box delivered at your home with the accessories and the food that your specific dog needs and a pet tracker to nudge you to make him exercise more.
Our world is changing fast and technological growth is leading to changes in all business sectors. The aim of these changes is to make the process of purchasing products and services more convenient, cheaper and smarter. Regarding the insurance field, the introduction of new technologies to the market is expected to benefit insurance companies, insurance agents, and most of all, the insurees themselves. Several relevant technologies and trends in the field are creating a real revolution in the insurance field. The innovative digitalization we're now witnessing helps insurance companies and agents in the processes of registration, customer service and claim management.