As with every industry, COVID-19 has affected the way in which companies operate, and it’s also made an impact on the trends within a sector. The most well-known of these being digitalisation. LEt’s take a look at some of the trends that are part of the insurtech industry, whether they affect the present situation or one in the future.
The Insurtech industry today
Before we do, however, it’s important to understand where the market sits in terms of value. As of 2019, the insurtech industry was valued at US$5.48bn, which is expected to US$10.14bn by 2025. The increase will be measured at a compounded annual growth rate of 10.8%.
Data and connected devices
The first trend is the increase in devices and data. According to experts from Statista, almost 40bn devices will be connected via the Internet of Things. This could generate around US$3.9trn to US$11.1trn every year. Connecting this many devices will result in an increase in the amount of unstructured and structured customer data, which would allow companies in the insurtech sector to take a different perspective on the benefactors. This knowledge can be used to develop new products, personalise pricing and improve services.
Seamless claims processing
One of the largest parts of the insurance industry is the management of claims. While it is important, it can be time-consuming and labour-intensive. However, data-capturing technologies have the ability to change this using simplified processes For example, AI systems can automatically detect claims triaging and repair requests after an incident has happened.
The systems can streamline the claims process, making it easier and quicker for both the insurance company and the claimant. AI-based systems can also identify data patterns in claims reports, preventing human error, fraudulent claims, and resultant inaccuracies.
Privacy and security
Privacy and security are also a trend increasing in popularity in the insurtech industry. Storing and working with data is often ambiguous. This is partly due to companies having to store large amounts of sensitive data of their customers, and partly due to data requiring a high level of protection - a growing opportunity for businesses in the industry, allowing them to include data protection within the value chain.
The way in which insurance technology is advancing means that there are bound to be several changes. If companies are able to leverage and use the digital transformation to their advantage, they will be able to develop new technologies, reduce costs, and exceed their customers’ expectations. Technology, it seems, will drive the growth of the insurtech industry for years to come.