As advances in technology shift customer expectations and the competitive landscape, insurance companies are innovating and remain competitive. According to a 2017 insurtech report by PwC, 88% of companies are expressing concern with a loss of revenue to innovators, forcing many to look at how their companies can respond to disruption and increase opportunities.
With the majority of insurance, global banks, and wealth management companies planning on increasing their investment in innovation in the next 3-5 years, it’s critically important to keep up with the most current insurtech trends and predictions.
Here are seven articles that stand out to me as worthy of your time and attention. Feel free to share any feedback on these articles and we welcome any suggestions if you think we’ve missed any.
To remain competitive, seize opportunities and overcome threats of digital disruption, the traditional insurance industry has no choice but to innovate. McKinsey outlines some research insights for the age of innovation and how it’s impacting the established insurance industry.
With so many unique data points available to the medical community, a drug that used to be perceived to only be 20% effective, can now be seen to be much more effective when prescribed to people of a specific genotype. In the same way that digitization allows for precision medicine, why not precision underwriting? In this compelling article, online insurer, Lemonade, explores what the mass availability of customer data points could mean for the insurance underwriting process.
Experts are describing the rapid evolution of the insurtech movement as a “global phenomenon,” with the most popular global insurtech investment being property and casualty insurance. In the future, I anticipate we will also see an increase in these insurtech investments in life insurance.
Life insurance is slowly evolving from paper and manual processes to embracing digital solutions. Now, instead of waiting months to get a life insurance policy, some companies can issue a fully underwritten policy within one to two weeks. One of my favourite quotes from the article: “they’re finally getting out of the Fred Flintstone age,” says Thomas Henske, partner at Lenox Advisors Inc.
Digital channels are proliferating rapidly and carriers have to be strategic with how they reach and communicate with their customers. In this article, Pat Speer highlights the most current research supporting the move for insurers to communicate with their customers digitally.
Tech Wire Asia predicts that the next stage in digital transformation for insurance is artificial intelligence (AI). While I do not think artificial intelligence will overtake existing distribution in the near term, I do think AI will help automate, segment, filter, identify needs, and match people with products and solutions.