Insurance Technology
Insurance Technology (InsurTech) refers to companies that are bringing technology to bear on the insurance industry.[1] Companies in this sector aim to change the perception of the insurance marketplace for technologically savvy younger customers.[2]
Current landscape
The most recent U.S. Census Bureau study showed that millennials (ages 18-34) have surpassed baby boomers (ages 51-69) as the largest living generation. In order to account for this shift in consumer preferences, more insurance companies are investing in these InsurTech companies. “Over the past few years, insurtechs have emerged in the insurance space. Investments have grown by leaps and bounds—whereas $140 million was invested annually in 2011, investment climbed to $270 million in 2013, and $2.7 billion in 2015. Over this same period, the most successful insurtech ventures moved beyond the seed and venture-capital rounds of financing to advanced funding rounds. The average investment per insurtech has risen fivefold, from $5 million in 2011 to $22 million in 2015.”[1]
Oxbow Partners calculates that there are roughly more than 1,500 Insurance Technology startups.[3]
Technologies employed
The Insurance Industry is “focusing more on prevention rather than cure with the use of connected devices (e.g. Aviva's investment in Cocoon), launching new brands with different messaging and target demographics (e.g. Admiral’s Veygo), and offering a range of services complementary to insurance.”[2]
Data mapping and analytics are being employed to predict and prepare for natural disasters,[2] while drones and smartphone apps are allowing for faster assessments and payouts.[2]
References
- ↑ 1.0 1.1 Catlin, Tanguy; Lorenz, Johannes-Tobias; Münstermann, Björn; Olesen, Braad; Ricciardi, Valentino (March 2017). "InsurTech - the threat that inspires". McKinsey & Company Financial Services. Retrieved 19 November 2018.
- ↑ 2.0 2.1 2.2 2.3 Kocianski, Sarah (24 September 2018). "InsurTech Isn't Boring, Trust Me". Forbes. Retrieved 19 November 2018.
- ↑ "InsurTech". NAIC. 12 July 2018. Retrieved 19 November 2018.
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