Insurtech premiums to exceed $566bn in 2025, claims Juniper
This would represent a 123% increase on 2020’s figure ($250bn) and subsequently mean that the sector would account for 8% of insurance premiums globally.
As such, the indicates that motor, life, home and health coverage providers are unlikely to remain competitive if they do not leverage digital innovations, such as artificial intelligence-based underwriting systems.
Preparing insurtech ‘readiness’
Juniper identifies some troubling factors for insurance incumbents that indicate consumer loyalty may be flagging, not least of which are generally inferior customer interactions and non data-driven models.
However, the report also notes that several high-profile, high-worth incumbents are poised for a digital transformation that could put them on an even keel. The top five are:
Chinese insurance giant Ping An alone is set to invest $1bn annually into insurtech. Others will need to follow suit if they’re to stay ahead of trends.
Chubb goes digital
“Consumers will have the ability to select coverage options they need now, at their current stage of life, through brands they already love and trust,” said Laura Bennett, Senior VP of eConsumer for Chubb in North America.
“Blink will appeal to consumer-savvy companies looking to create added value and increase customer loyalty through an insurance offering backed and sold by an industry leader like Chubb. Whether it’s an offer made alongside a purchase, or an integrated experience using Blink APIs, Blink reimagines how customers experience insurance in the digital world.”
Akur8’s US$30mn Series B to fuel US and APAC expansion
Still a relatively new company in the sector, Akur8’s progress since it was founded in 2018 has been characterised by cutting-edge tech, strategic growth, and a highly personable approach that clearly demonstrates the youthful innovation of insurtech itself.
The company strives to embody four key values:
- Challenging a status quo that doesn’t benefit customers
- “Disrupt the known, organise the unknown”
- Provide artificial intelligence (AI) tech with a distinctly human edge
- Create solutions that will endure the test of time
At the heart of Akur8’s business is its Transparent AI solution. Capable of empowering actuaries and pricing teams through better, faster decision making, the insurtech touts it as “the only solution that automates rate modeling while keeping full transparency and control.”
Transforming insurance pricing
In just two years, Akur8 has acquired over 30 customers in 10 countries - including high-profile insurers like Munich Re, Tokio Marine Kiln, AXA, and Generali - and established additional offices in London and New York. Now, the company is keen to develop its business in the US’ verdant insurance market and build its presence in APAC.
“The BlackFin team is thrilled to see Akur8 continue to spread its wings and deploy its next generation pricing platform across insurance carriers worldwide,” said Julien Creuzé, Partner. “We have built a great relationship with the Akur8 management team and it’s a pleasure to welcome new investors and continue this journey with them.”
Guillaume Beraud-Sudreau, Co-Founder and Chief Actuary at Akur8, added, “We are humbled by the trust that our clients and investors have placed in Akur8. Building the future of insurance pricing powered by Transparent AI has been our goal since the first day of R&D. Now this vision has become reality and we can’t wait to accelerate our growth to become the global reference in insurance pricing.”
Cover image source: Akur8