Innovation in insurtech is notably regional, wearables and devices innovation is mostly in the US, Insurance industry does not stay aside of technological innovation. It keeps abreast of the tech-developments and initiatives in developing new insurtechs. The years past saw insurtech evolve into the new frontier in fintech. Indeed, one could dare say that 2015 was the year that insurtech went well-known. Here are the 10 amazing insurtech innovations you could notice going on in the United states:
1) More Blockchain in Insurance: Insurers will significantly realize the rewards that blockchain technology brings to the table; lowered cost of claims processing, a greater level of trust and an immunity to traditional cyber threats. That’s not all, blockchain’s immutability can stimulate the insurance market to create new products, blockchain has the potential to transform the insurance market.
2) Insurers invest in IOT: It helps to catch consumers’ behaviour shifts and to build different pricing models (e.g. telematics “pay as you drive” model); to amass big data and to turn it into the advantage of the customers through introducing relevant products. As well as, IOT allows the execution of automatic claim processes using different tools.
3) Driving innovation through teamwork: Combining the depth of experience of insurance firms and the creativity and agility of start-ups can accelerate the industry’s digital revolution and enhance its ability to acknowledge future issues.
4) Labor market revolution: Innovation revolution is changing labor market’s landscape. Robotics and robo-advisors that offer financial services and advices to the customers, are changing wealth management and financial advisory sectors.
5) Ability to turn insurance cover on and off: Convenience comes at a premium price. These days, the freedom to be able to digitally switch insurance cover on and off, as per the requirements of the user, is increasingly adopted.
6) AI-driven automation: AI is giving insurers three main added benefits. First of all, it is enabling them to mine greater volumes of data. Secondly, it allows businesses to scale analytics across the organization by operating faster and also smarter. Lastly, it allows firms to develop their predictive precision.
7) Rise of P2P insurance structure: Recently, insurers are increasingly leveraging the power of community to offer low-cost insurance. Consequently, P2P insurance has been gaining traction.
8) New Data Sources: Insurers need lots of data all the time. This year insurers look to Internet-connected sensors and devices as new ways to obtain meaningful data. Mobile apps, IoT and wearables has surfaced as powerful and reliable sources of data that will gradually complement traditional underwriting data.
9) Underwriting automation: The future of underwriting is clear, automation is a key for future growth. In today’s global markets, many consumers want to access insurance products in a quick and straightforward manner. To add value to their business, insurers are building automated underwriting technologies.
10) Micro-Insurance to provide highly personalized services.
Insurance providers are employing sophisticated data and insights to offer highly tailored services to meet customers’ increasingly precise expectations. One of most exciting developments in insurtech is the fact that firms are giving insurance only when it is needed.
Read more on the latest Insurtech trends.