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 focusing on four main themes:
Customers want convenience – and are willing to pay for it. Pay-by-the-usage is now just a click away.
The demand for innovation within the sector means greater investment in interactive technologies. AI-powered insurance app anyone?
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
The Internet of Things:
Leveraging the power of the community to provide affordable insurance, this model is now starting to use blockchain too.
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:
Increase profitable growth
Drive up customer engagement
Drive down costs
To stay one step ahead of the rest, it’s not about doing the same things better,
it’s about doing completely different things.
In the world of insurance, things have changed – have you?