10) Advanced distribution channels
Since insurtech is heavily focussed on Know Your Customer core principles, it makes sense that CARE-based objectives are being applied to distribution channels globally. The CARE-based channels focus on convenience, advice, and reach - all elements that appeal to new and returning users and maintain a competitive edge for the company.
9) Claims processing and faster payouts
Customers don’t expect to have to wait weeks for an unsatisfactory settlement of their insurance claim. In many cases, they will select their policies based not only on the potential size of payouts - but by how fast that transaction can be settled. Waiting for a claim to be paid, can in many instances impact a business's ability to move forward after a crisis. Speed is of the essence and insurtechs are taking that seriously.
8) Cybersecurity protection
Preventing the loss of vital information and protecting data in the event of a hack has become paramount for the vast majority of companies globally. As the threat increases, insurtechs are stepping up to meet the demands of the marketplace. They are creating new products and services that are meeting crises, with comprehensive cover that is based on a wide range of technical variables.
7) Usage-based products
With the gig economy and the sharing economy in full swing, it's hardly surprising that insurtechs are now concentrating on providing customers with better, user-friendly, and lower-costing UBI policies. From telematics in auto and fleet insurance to policies on AirBnB-style businesses, flexibility and control on how much that policy protects them is key.
6) ESG - Environmental and Social Governance is trending
Insurtechs are now heavily invested in promoting businesses and initiatives that support ESG directives. From making sure their own carbon footprints are tiny, to taking part in initiatives that bolster renewables and greening projects, it's cool to have a green partner to invest in. Not only that, but strategic collaborations between carbon-zero-conscious companies are also on the rise.
5) Continuous updates to stay technically relevant
Technology is moving so fast these days that it's become imperative for insurtechs to be technically agile. That means their platforms must develop as the market changes. Gone are the days when an update every six months meant you were ahead of the curve. These days, an insurtech has to be willing to evolve, almost in real-time, as new advances are made. APIs are the low code solution to many of these issues - and the drive to stay technically relevant is also supported by the wider insurtech ecosystem.
4) New data sources and sharper risk modelling
Insurtechs are more committed than ever before to finding ways that sharpen their insights. Whether that means increasing the number of data sources they use through the IoT, or by investing in state-of-the-art solutions, the road to risk assessment has never been so busy. From smart devices sensors in P&C, to wearables, drones, robots, and global satellite surveillance, (which is used to assess climate crisis risk and natural disaster events) high-tech insights are here to stay.
3) Automation and RPA
The boring, back-office manual tasks of paper and pen-pushing are a thing of the past as insurtechs ramp up on the latest machine-to-machine automated technologies. These hi-tech processing solutions result in faster processing, sharper insights, lower costs, reduced risk for human-caused inaccuracies, and enable insurtechs to provide customers with better products and services.
2) Embedded insurance offerings
Much like BNPL offerings and open banking, insurtechs are now able to embed their products and services with retailers. This enables customers to insure their goods at the point of sale is a couple of easy clicks rather than seeking out a provider and product post-sale. Reports show that embedded insurance results in an average 70% increase in customer insurance purchasing when it is presented as an instant and easy-to-arrange product at checkout.
1) Ecosystem partners and M&A
The digital ecosystem has become an essential part of the success of the insurtech market. Reaching out to a solutions provider for a specialised technology results in companies being able to scale much faster, and also enables legacy system operatives to immediately improve their processes without having to develop their own digital systems. Mergers and acquisitions are also on the rise as larger companies seek out niche providers with value and absorb their talents, which can then be distributed to a much wider audience.