The $5 trillion global insurance market is witnessing a huge transformation with emerging tech companies disrupting the insurance industry with digital technologies. Insurance companies are looking for ways to tap the millennials and planning for new business models to offer insurances. Technologies such as AI, automation, and cognitive are considered as inevitable tools that would positively impact the overall financial industry.
New Models – Consumers are looking for personalized insurance products instead of one-product-for-all in the market. The insurances through the digital medium reduce the distribution costs and create more profit for the insurers. The influx of AI and ML are expected to derive more insights to enhance customer satisfaction and reduce false claims.
Automation and AI – Automation and AI are expected to create a major impact in the insurance space. AI and automation technologies have the potential to eliminate the middlemen and paper-based work. Automation and AI are all set to smoothen the claims processing and settlement. Advanced analytics, IoT are being coupled with mobile-based insurance apps and wearables integrated with apps to provide real-time insights. In the coming years, we can expect many insurance companies to tie up with InsurTech providers that would help in increasing their customer base through a digital medium and enhance business processes using bots and intelligent products. Different insurance plans for a vehicle, home, personal, health and others can be customized as per market needs with flexible premium options. The advanced technologies would also ease the monitoring of claim verification and proactiveness of insurance service providers.
The emergence of robo-advisors, RegTech, and blockchain are impacting the InsurTech market and are changing the way of offering and operating insurance provision. The investments in FinTech industry has significantly risen and the huge insurance market is expected to reap the benefits of new technologies offered by the InsurTech companies to stay ahead and competition and delight its customers with digital presence for claims and premium processing.
– Swarup Bhowal,
Research Analyst – ICT,