Top 10 insurtech trends include auto underwriting

TechBullion takes on insurtech as a fast-growing technology with even more room to grow. Here are the 10 latest insurtech trends TechBullion cites for 2017:

1) New channels and devices

“With the increase of technology companies focusing on smart sensors, automation of processes and Internet of Things, this sector is expected to see a boom in supporting insurance companies with the most appropriate data that can reduce costs and provide insurer as well as consumer efficiencies,” writes Angela Scott Briggs.

2) Rise of Insurtech that address privacy concerns

“To reap the benefits of data, insurers need to tackle data privacy concerns. Insurers need to empower consumers to manage their own data.”

3) Emergence of Blockchain

“Blockchain technology is simplifying the claims process, alleviating high premiums, helping insurers create niche coverage and, most importantly, helping those who live in catastrophe regions. Smart contracts are also emerging as an ideal way to automate highly manual processes such as claims management and underwriting.”

4) Micro-Insurance to provide highly personalized services.

“One of most exciting developments in insurtech is that firms are giving insurance only when it is required. Some insurtech firms are now allowing drivers to pay insurance only for the hours driven or the miles covered.”

5) Underwriting automation

“The future of underwriting is clear – automation is a key for future growth. In today’s global markets, a lot of consumers want to access insurance products in a fast and straightforward manner. To add value to their business, insurers are developing automated underwriting systems. Recently, Swiss Re enhanced its automated underwriting system, enabling it to guide the consumer through the underwriting process, reduce the number of referrals to an underwriter, and offer strategic information to help companies in an increasingly competitive world,” she writes.

6) New Data Sources

“Insurers need a lot of data all the time. In 2017, insurers will look to Internet-connected sensors and devices as new sources of meaningful data. Mobile apps, IoT and wearables will emerge as powerful and reliable sources of data that will progressively complement traditional underwriting data.”

7) AI-driven automation

“AI is giving insurers three main advantages.  First, it is allowing them to mine greater volumes of data. Second, it allows businesses to scale analytics across the organisation by working faster and smarter. Lastly, it enables firms to develop their predictive accuracy.”

8) Collaboration between insurtech and traditional insurers

“The top insurance companies are becoming the biggest investors in early stage insurtech initiatives. Insurers will continue to pump money into insurtech start-ups in order to secure their competitive positions.”

9) The rise of Insurtech investment

“According to the “Pulse of Fintech” report, VC-backed Insurtech investments a hit $1 billion mark in the first half of 2016. This year will also see increased investments in insurtech.”

10) Rise of P2P insurance business model

“Recently, insurers are increasingly leveraging the power of community to offer affordable insurance. Consequently, P2P insurance has been gaining traction. Expect to see the rise of the P2P insurance model in 2017.”
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