Page 25 - November 2020

INSURTECH: The stellar rise of InsurTechs

GLOBAL PERSPECTIVE As uncertainty broods all across the ecosystem,
companies had no other option but to resort to
Farhat Zishan compiles the latest trends and insights from the World digitization and innovation. A survey conducted
InsurTech Report 2020 by Capgemini and Efma. by Capgemini Financial Services has stated that
60% of the industry players have launched
Mapping the latent needs of customers in-house innovation teams. 30% of the respon-
The entire Insurance industry has suffered a blow in the face of the dents have stated that they have allocated
global coronavirus pandemic. Experts believe that there have been separate funds for innovation and separate
significant changes in terms of customer engagement during this digital products related to their core businesses.
critical timeframe of 2020. And that has led to the rise of InsurTechs –
which refers to the innovative technologies and
new digital tools developed to optimize the
performance of insurance companies, to deliver
a better customer experience, and unlock the
potential of advanced analytics.
According to the latest reports and statistics,
the global InsurTech market size will continue
to grow. The growth of revenue will hit the point
of $1,119.8 million by 2023. Statista mentions
the improvements in claim processing in the
USA and worldwide. Using new technology,
insurers proceed to claims faster and more
efficiently.

175.44
But the good thing is that experts have mapped out certain demands
and needs of customers which have become evident during this crisis. 110.18
Addressing these properly can lead to better business results for
insurance companies - 72.53
Redefining the essence of Insurance – Consumers have stated that 44.09
they perceive Insurance as a utility – offering them time-flexible
coverage options, on-demand or usage-focused packages, and of
course, incentives based on usage frequency. Market size available for Market size available for
Ease of access – With rising technological adoption, consumers have improvements claims processing
underwriting
improvements
expressed the desire to make these services much more accessible.
They are increasingly opting for insurance services that are accessible Source – Fortifier blog post 2016 2020
at any time, anywhere, and can communicate with the service
providers via a wide range of channels.
Empathetic and timely response – One aspect that needs drastic InsurTechs have already been segmented by
attention is the speed of services. Consumers are expecting quick, industry veterans –
hassle-free services and expect a touch of empathy and selfless Enablers – These are fledgling companies and
support when professionals are handling their claims. startups providing a software solution to large
These needs can be skillfully summed up with the following image – insurance companies. Highly preferable for
large scale companies seeking digitization in
any end of their value chain.
Distributors – These companies are fully
engaged in launching insurance products and
their primary focus is enhancing customer
experience by providing a wider range of
information and choices.
Full carriers – These companies are a combina-
tion of Enablers and Distributors, as they both
develop and distribute insurance products. They
are miles away from the traditional business
model of insurance companies and are
constantly integrating technology into their
business processes to completely redefine their
core offerings.

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