The report demonstrates the benefits (in terms of improved claims loss modeling) of harnessing the value of Federated Learning (FL) to learn a single model across multiple insurance industry datasets without requiring the datasets themselves to be shared from one company to another. The application of FL addresses two of the most pressing concerns: limited data volume and data variety, which are caused by privacy concerns, the rarity of claim events, the lack of informative rating factors, etc.. During each round of FL, collaborators compute improvements on the model using their local private data, and these insights are combined to update a global model. Such aggregation of insights allows for an increase to the effectiveness in forecasting claims losses compared to models individually trained at each collaborator. Critically, this approach enables machine learning collaboration without the need for raw data to leave the compute infrastructure of each respective data owner. Additionally, the open-source framework, OpenFL, that is used in our experiments is designed so that it can be run using confidential computing as well as with additional algorithmic protections against leakage of information via the shared model updates. In such a way, FL is implemented as a privacy-enhancing collaborative learning technique that addresses the challenges posed by the sensitivity and privacy of data in traditional machine learning solutions. This paper's application of FL can also be expanded to other areas including fraud detection, catastrophe modeling, etc., that have a similar need to incorporate data privacy into machine learning collaborations. Our framework and empirical results provide a foundation for future collaborations among insurers, regulators, academic researchers, and InsurTech experts.

Regardless of where you live or who you are, protecting your home, assets and loved ones will always be a key concern. In a world full of uncertainty, people from all backgrounds want to be sure they're safeguarded from threats, potential disasters and loss of property. Enrolling in home, auto, health or other types of insurance can bring peace of mind, but as anyone who has tried to navigate the buying exchanges will know, this can often be easier said than done. The barriers to enrollment are many, and with so many complicated coverage options, convoluted eligibility requirements and fine print to sort through, the insurance industry is in need of a makeover. Thankfully, the insurtech industry has arisen to do just that.

In recent years, technology development has accelerated considerably, among others in the insurance market. For this reason, both insurers and Insurtech companies should verify their strategic and technology goals. The progressing digitalization and widespread use of artificial intelligence result in rapid transformation to be faced by entities in both groups. Importantly, solutions offered by Insurtech companies should match actual needs of insurers, and this is one of issues we want to analyze in our survey. The goal of the survey, carried out by Deloitte in Poland and in selected Central European countries, is to identify industry trends and determine both the needs of insurers and capabilities of Insurtech companies.

InsurTech companies are leveraging Artificial Intelligence (AI) to conquer more ground in today's digital world. AI has evolved over the years and has had far-reaching consequences on most tech-driven operations, including the insurance industry. AI is enabling insurers to apply machine learning, data modeling, and predictive analysis to the entire insurance value chain, and the results have been favorable in the form of an increased bottom line and enhanced customer satisfaction. Read ahead to know the impact AI has and will have on the now digitally-oriented insurance industry. It is an umbrella term given to a bundle of technological advancements that have helped humans to program machines to perform certain activities.

Over the last year, we saw a greater shift towards automation and AI applications to streamline insurance, including increased usage of augmented reality to support activities ranging from warning of risks, explaining insurance plans, estimating damages and increasing brand awareness. We also saw insurers starting to explore greater use of blockchain, the tech behind cryptocurrencies, to better support operations. With this came a greater emphasis on cybersecurity, with the expectation for more proactive and preventative measures. As we enter the next decade, we'll continue to see unprecedented growth in innovation in the Insurtech space, which has set up the industry for more market advancements in an increasingly complex environment. The Canadian insurance industry has been largely inert and less agile in the past, and it's this environment where Insurtech has made its mark.

CommerzVentures has made a USD6 million investment into Concirrus, a speciality analytics insurtech company. This latest investment by CommerzVentures follows a recent announcement which saw London-based VC firm AlbionVC lead on a USD 20 million series B funding round, which included participation from current investors IQ Capital and EOS Venture Partners, as well as several angel investors. Royal Park Partners acted as exclusive financial advisors to Concirrus and its board of directors on the deal. With many new clients added to its customer portfolio in the last quarter, Concirrus continues to demonstrate and reinforce its strong credentials with some of the most respected leaders in the market, the company said. Heiko Schwender, partner at CommerzVentures, commented on the deal: "Our passion lies in helping fintech and insurtech companies to succeed. We believe Concirrus has the best solution to manage risk in the marine insurance industry. Using the latest advancements in AI and machine learning, the company has developed a behavioural-based underwriting platform called Quest, which aims to deliver highly differentiated pricing, portfolio management and predictive analytics. Schwender continued: "Ultimately, it will serve insurance carriers in a variety of supply chain industries.

After a long period of debate as to whether the hype is justified, the time of insurtech is at hand, with innovators in this sector helping to reinvigorate insurance with tech-driven business models that completely transform the customer experience. That's the central message to emerge from the InsurTech Rising International conference in Paris in October, according to Alex Thomson, co-founder at Naked insurance. "Insurance has a reputation for being a conservative industry that resists change, but the overarching theme at InsurTechRising International was that we're starting to make material progress in using technology to rejuvenate the industry, but the best is yet to come," says Thomson, who was invited to take part in a panel discussion about bridging the gap between corporates and startups in the insurance industry. "We're seeing a lot of innovative thinking coming to the fore in insurance, along with investments aimed at transforming the customer experience. At last, insurance is entering the digital age."

The last decade saw a huge change in the way insurance industry functions. As we step into 2020 with AI-driven InsurTech initiatives, the next one promises to be even more of an adventure. Innovation and technology are going to be the forefront, but any predictions about future trends may have a tendency to be short-lived. At the beginning of the previous decade, it would have been impossible to imagine that the consumers would trust their hard-earned to anyone other than a qualified agent, who could deliver a personal touch and inspire confidence in their investment. Today, insurance customers are willing to buy insurance and take financial advice from AI virtual assistants.

The global insurance market is in the midst of a game-changing course correction that will re-define'business as usual.' A'digital first' urgency is sweeping across the landscape, driven by a new generation of consumers, data, automation and Artificial Intelligence (AI). Let's take a look at the current trends that are shaping the insurance industry and how digital technologies are driving irreversible change. The digital economy will make usage-based, on-demand and'all-in-one' insurance lifestyle products more relevant. Customers will prefer personalized insurance covers instead of the one-size-fits-all products currently available.

Insurtech companies have already changed the way some insurance products are sold but "you ain't seen nothing yet," said Daniel Schreiber, CEO of Lemonade Insurance Co. Start-up insurers using digital technology and artificial intelligence are gathering vast amounts of data that will revolutionize the way risks are assessed and priced, he said at the InsureTech Connect conference Wednesday in Las Vegas. As a result, in 10 years, the insurance buying process will be very different than it is today, Mr. Schreiber said. "The next insurance leaders will use bots not brokers and AI not actuaries," he said. Insurance industry incumbents have in many cases dominated the sector for centuries, but they will have a much harder time going forward, said Mr. Schreiber. Lemonade, which was established two years ago, offers renters insurance and has a highly digitized underwriting and claims system.