Some insurance companies are more traditional and reluctant to change. However, the insurance industry is increasingly experiencing a digitization process. In this article, we will look at why insurtechs are gaining the trust of companies.
1. An interesting market for investors
The insurtech market has been receiving capital over the last few years. According to the State of European Insurtech 2022 report, European insurtech had its 2nd best quarter ever in Q1 2022, with $884M in funding.
The period from 2018 to 2020 was decisive for the industry in terms of capital investment. From Q1 2018 to Q1 2021, worldwide funding for InsurTechs rose 252%, reaching an all-time high of USD2.5 billion (CB Insights). Having investors interested in supporting such disruptive companies is a good sign for the evolution of the sector.
2. Bringing innovation to insurance
There are emerging InsurTechs that are helping to create new products and services, using technology and Big Data to automate processes or working to get to know the customer deeply. All of this makes it possible to create an innovative ecosystem from which many companies can benefit from.
3. Turning data into value
Insurers have declared that historically they have an enormous amount of data. The problem is that data doesn’t mean much by itself without conducting a proper analysis. InsurTech have created software and solutions that can turn data into actions and deliver clear insights faster and cheaper than before.
4. More flexibility
Consumers have changed their habits and customs. Renting a home or a vehicle is commonplace now. New types of insurance are being created for covering new ways of living. For example, home insurance policies for a short period of time can be taken out digitally now. Technology has brought the products and services offered by insurers closer to what customers need.
5. Improving customer experience
Introducing AI into processes can help insurance agents become more efficient and spend more time building long-lasting customer relationships. Creating a cross-channel communication or simplifying and digitalizing processes are strategies that can work to retain customers.
Thanks to these technological advances, insurers can really focus now on what they’re good at and work with partners who complement their expertise and make them better. We see that innovation is already here. Surely InsurTech companies have plenty of opportunity to surprise us again in the near future.
Here in Wenalyze we innovate using open data to give insurers the info they need about a business in real time. Thus, they can make decisions faster and save a huge amount of time. Contact us here wenalyze@wenalyze.com to see how we can help your company!
