10 InsurTech Trends at the Insurance Crossroads 2018
Although in recent years the insurance industry and technology have become rather synonymous with one another, the industry has not yet fully established a leading position in the application of technology. However, through the emergence of InsurTech, the situation is set to change. InsurTech is a FinTech sub-sector currently dealing with prevailing insurance challenges and opportunities. Read on to find out which are the top 10 InsurTech trends to watch out for in 2018!
1. Human effort will be replaced by automation across the whole insurance value chain
This trend will profoundly affect the insurance sector, mainly because much of the insurance industry still operates in pre-Internet ways. This will provide customers with a complete digital experience, without any human contact.
2. Insurance premiums will become highly personalized
Eventually, individuals of the same age and gender, with identical cars/ homes living on the same street will no longer pay the same premium. Rather, in the future, other factors will be involved to reflect better granularity in their individual risk profiles.
3. The blockchain era is here and a prompt shift from pilot to production of distributed ledger technology will occur
Although there are still some major questions to answer about the blockchain technology, in terms of scale, performance and security, the technology persists in demonstrating its ability in providing a practical solution.
4. By 2020, InsurTech is said to become mainstream
The impact InsurTech is leaving on the insurance world is rather speedy. As a result, InsurTech start-ups are popping up all over the world.
5. The relationship dynamic between insurer and insured will change due to digital engagement via lifestyle apps
Lifestyle apps have become a part of society. This renders them ideal vehicles to provide customers with a peace of mind when buying insurance. These apps also help build brand loyalty and give insurers deeper insights into their customers’ behavior.
6. The All-in-One insurance policy is here to stay
Through this insurance policy, customers will benefit from having “everything” covered in one go. Customers will be able to give their insurer details about their car, home, health, travel, and pets, and the insurer will provide them with one overarching policy.
7. The traditional insurance value chain will face challenges due to new models
Once insurance becomes embedded into lifestyle products or distributed through ecosystems, as is predicted to happen in this digital economy, the traditional insurance model will cease functioning. As a result, the traditional highly-intermediated value chain, will soon be diminished to shorter value chains.
8. InsurTech is set to be adopted by more companies
Some leading international companies adopting InsurTech have been so successful that they managed to cover 50% of their market with their insurance products. Consequently, more companies are starting to follow in their footsteps. With Malta being at the forefront of the regulation of blockchain technology, this emerging industry is bound to have potential also here.
9. Customers can soon benefit from quick, automated, self-service claims settlement
Whilst traditionally the claims process is undertaken manually and hence, is quite laborious and time-consuming, the InsurTech solution can put the claims process in the hands of the customer. Through this self-service approach, the customer provides videos and images at the FNOL (First Notice of Loss), and then, automated reviews of claims manage most of cases and award immediate payouts.
10. Tech-enabled loss prevention will become central
Advances in technology are increasing the possibility of predicting the likelihood or outcome of an event. Sensors, phones and devices are all collecting data to model behavior and to define our individual norm. Through this technology, insurers will become active risk managers.
Clearly, InsurTech is gradually reshaping the insurance industry. Now’s the time to start adapting your business to this up-and-coming technology as to ensure staying ahead of competitors.
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