Insurance companies use digital technologies to enhance their offerings based on changing customer needs. In a survey conducted by EIS Group, 59% of insurers increased investment in 2021 and expect it will continue in 2022 with an emphasis on blockchain technology such as cost savings (38%), faster payments (37%), or fraud mitigation features.
Transparency remains relevant because this allows customers more convenient access to information about policies they may have through smart contracts. What is the state of insurance and InsurTech? Continue reading.
Global InsurTech Market Size in 2022 was estimated at $5.45B and projected to grow with the compound annual growth rate (CAGR) to reach $159B by 2030.
The InsurTech industry’s partnership with insurance companies is helping to bring new technology that will improve customer experience and offer innovative solutions. For instance, Amodo has announced plans in regard to use blockchain-based technologies for its partnering company Galileo Platforms Limited. It aims at improving how they provide services while also strengthening market position through accepting cryptocurrency payments from customers like Metromile, who already use it as an option when buying car policies.
The World Insurance sector, according to InsurTech Global Outlook 2021, currently writes a little less than $6.3 trillion worth of direct premiums, with motor vehicles making up 36% and health care accounting for 21%. Life insurance products include pension schemes as well as individual endowment policies.
InsurTech is becoming a popular investment destination for North American companies, accounting for 74% of total investments. Asia comes in second place with 14%. Switzerland accounts for 1%. The most popular investments are Health and Cross-liability (in total 63%) claims InsurTech Global Outlook 2021. These coverages come from commercial insurance contracts, which provide protection for both parties if one makes a claim against the other as though they had their own separate policies.
The industry is being pushed by the pandemic to invest in and implement InsurTech, focusing on numerous areas including client-centricity with intelligent procedures. Accelerating virtual interactions for sales are also key among other things like cutting costs so that they can stay competitive.
This includes creating customized insurance packages as well as social policies targeted at consumers who might need them most. Like pricing premiums based on data from Internet-enabled devices which gives an indication of what people want or demand when it comes down right now.
Insurance companies often use AI/ML algorithms but there has been less focus put into developing these technologies beyond just deciding whether someone should buy auto policies.
The growth of the InsurTech industry will continue to be strong for the next ten years as it continues partnering with technologies like AI, machine learning and blockchain that are developing rapidly. These advancements allow companies more access than ever before to their customers’ information. This gives them an opportunity in providing personalized insurance policies based on individual needs rather than what’s available at any given time or place.
The number of insurers investing in InsurTechs fluctuates with only 38% having done so since 2010. COVID-19 had a moderate influence on these investments; however, it is important to note that there are still many companies who did not change their strategy. They invest more in loss adjustment technologies such as underwriting software or data analytics tools for claims processing.
Insurers may take advantage by focusing on less risky business lines like property/casualty coverage which can generate higher profits than medical malpractice policies.
Regarding technology trends, AI, IoT, and Predictive Analytics have seen increased investor interest in recent years and have been attracting large sums of investments by relevant Insurers, Tech Giants and Industry Giants.
The future of on-demand insurance is here, and it’s a gadget’s dream. With the internet at our fingertips, we can now purchase coverage from anywhere in just minutes. These new innovations have enabled businesses to create better products for consumers with more convenience than ever before.
Still, insurance companies, like many industries, deal with tech debt. System integrations and automation are common solutions looked for. Companies also struggle to find reliable technology partners.
„After carefully evaluating suppliers, we decided to try a new approach and start working with near-shore software house. Cooperation with Hicron Software House was something different, and it turned out to be a great success that brought added value to our company.
With HICRON’s creative ideas and fresh perspective, we reached a new level of our core platform and achieved our business goals.
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I wholeheartedly recommend Hicron to any organization seeking a strategic long-term partnership, reliable and skilled partner for their technological needs.
After carefully evaluating suppliers, we decided to try a new approach and start working with a near-shore software house. Cooperation with Hicron Software House was something different, and it turned out to be a great success that brought added value to our company.
With HICRON’s creative ideas and fresh perspective, we reached a new level of our core platform and achieved our business goals.
Many thanks for what you did so far; we are looking forward to more in future!
Hicron is a partner who has provided excellent software development services. Their talented software engineers have a strong focus on collaboration and quality. They have helped us in achieving our goals across our cloud platforms at a good pace, without compromising on the quality of our services. Our partnership is professional and solution-focused!
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