Business models within the Insurance Industry are experiencing a significant period of change and a few within the industry have formed alliances with those from the InsurTech community. 2017 looks set to be an interesting year for insurers as some of the InsurTech pilots and production rollouts progress to the next level.
It was initially suggested that the InsurTech community would invade the Insurance Industry and capture significant market share from the incumbent insurers. However, as time has advanced the relationship (for a few) between the Insurance Industry and the InsurTech community appears to have followed a slightly different path with a number of new partnerships being formed. Clearly pooling resources and building upon the strengths of the other was considered a more attractive proposition.
Two InsurTech trends that we believe are likely to continue to develop during 2017 include:
- Progress in respect of the on-demand insurance platforms to support the on-demand economy. In the era of the connected consumer the insurance industry is likely to see an increase in InsurTech that will aim to deliver a differentiation on customer experience and provide on-demand insurance services. On-demand insurance platforms will look to offer customers cover at the point that it is needed, without the customer having to commit to annual plans.
- Focus upon InsurTech to aid the collection and interpretation of data. Data is the lifeblood of the insurance industry and access to new data such as data produced from connected homes, drones (geospatial imagery), telematics, dashcams, social media engagement and aggregator policy quotes are all helping to advance an insurer’s understanding of the customer, prospective customer and the appropriate price point of policies. InsurTech that focuses upon dynamic risk modelling through data analytics and improves the decision making process of an insurer is likely to be a key goal for InsurTech and Insurers during 2017.
We look forward to seeing the changes that occur within the Insurance Industry in 2017 and to quote John F. Kennedy “Change is the law of life. And those who look only to the past or present are certain to miss the future!”
Wishing you all a Happy New Year!
2016 has been the year of InsurTech investment. According to analyst firm CB Insights, venture capital firms made 126 investments in insurance globally in the first nine months of 2016, with a total value of $1.4bn (£1.1m), compared with 118 for the whole of 2015 and 26 in 2011.