By FINTECH Books Contributor, Neil Thomson
Things have changed in the world of insurance. Breaking from tradition, the industry is focused on new propositions, new customers, new competition and new data.
Established insurers are being disrupted by Insurtech start-ups. Well-funded and agile, these smaller start-ups are introducing transparency into the market and employing new ways to analyse new data.
Celent’s consensus is that there are 600-800 InsurTech start-ups globally focussing on four main themes:
Customers want convenience – and are willing to pay for it. Pay-by-the-usage is now just a click away.
On-demand protection: The demand for innovation within the sector means
greater investment in interactive technologies. AI-powered insurance app,
Improved customer engagement via new propositions: Connected homes, people and systems offer new sources of real-time, meaningful data that allow insurers to learn how their customers behave.
The Internet of Things: Leveraging the power of the community to provide affordable insurance, this model is now starting to use blockchain too.
Peer-to-peer insurance: Things have changed in insurance and InsurTechs have been quick to grasp this. One of the biggest drivers of change has been the approach to data analysis.
Insurtechs have rapidly adopted renegade approaches to dealing with big data. Traditional, bureaucratic models of analysing data are out, and smart, new, fast, effective data analysis is in.
To maximise leveraging the value of data analysis, insurers should link everything they do to one of four SMART objectives: