Worldwide Insurtech Trends that Will Impact the Insurance Industry in the Near Future - Make Money Online

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Worldwide Insurtech Trends that Will Impact the Insurance Industry in the Near Future

Last year, a lot of traditional insurance firms were hindered by regulatory transformation services and legacy IT systems. It has resulted in limited funds and reduced investment in innovation, leaving Insurtech industry slightly behind financial sector.

Nevertheless, this industry tends to grow rapidly all over the globe. It is anticipated that the Insurtech field is going to grow 10 percent each year until 2020. That's because insurance technology is quickly developing. It has huge benefits for policyholders and insurers alike.

So, let’s see some Insurtech trends in the coming years.

Big Cost Savers in Operations, Claims, and Buyer Acquisition
Although this trend already exists in Insurtech field, it will be gaining in importance worldwide. Many insurance companies are facing high combined ratios, which are prone to exceed 100, so it's essential to cut down costs and digitalize current procedures concerning operational excellence.

The insurance carriers will undergo a radical transformation in order to get more cost-saving solutions. Both small and big insurers that take themselves seriously will strive to be more efficient and reduce all the major costs, including customer acquisition expenses, claims costs, operations costs.

New Channels, Programs, and Devices
In the last and current year, some of the most important emerging technologies in the Insurtech industry include home sensors, telematics, and IoT devices (Internet of Things devices) that support both carriers and insurance brokers. We have also seen advanced car warning systems and smarter alarms.

With an increasing number of tech firms that focus on automation of processes, Internet of Things, artificial intelligence, and smart sensors among others, we are likely to see a huge growth in this sector. While supporting insurance companies and banks with the highly relevant data, new programs and devices will cut back on expenses and yield a greater efficiency. So, it's a good idea to use online publisher programs for a variety of insurance offers, such as insurancerevenue.com.

Greater Privacy
The majority of new firms in the Insurtech industry are relying on well-analyzed consumer data in order to provide essential insights helpful for insurers. Nonetheless, there is still a large number of consumers who are cautious about providing private information.

This is where the Insurtech startups will come into play. They will have to enhance security and privacy features to address privacy issue. Expect a swift growth of Insurtech startups in the next year that will help insurer firms to deal with this concern.

Better Cooperation Between Insurtech and Legacy Forms
Many Fintech startups have gotten interest and support from traditional banks in the recent years. The same trend should continue in Insurtech field, especially with the leading insurance organizations. We can anticipate more partnerships between banks and Insurtech startups, including both re-insurers and traditional insurers.

These partnerships will involve different mobile comparison apps, predictive recommendation engines, smart home devices, auto insurance products, and electronic documentation systems.

Blockchain Will Act as a “Key Driver”
A good news for all the Insurtech predecessors working in the blockchain field is that there are more and more use cases that improve cost efficiency and operational excellence. In fact, blockchain technology is going to be utilized by a lot of companies in different industries.

Everledger is already using blockchain technology in the diamond industry to track valuable objects. For that purpose, this global startup has partnered with a number of organizations, including some insurance companies. Other big firms like BlockVerify, InsureEth, and  B3i consortium have also developed the similar use cases.  And more and more companies will engage blockchain technology in insurance in the coming years.

Insurance innovations are highly regional. While the United States is a leader in devices and wearables innovation, insurance innovation in the healthcare industry is largely in Asia. Even some Insurtech companies in Africa operate successfully with risk management and peer-to-peer underwriting. With lots of players in Insurtech field around the world, the next year seems to be the year of insurance technology innovations.
Worldwide Insurtech Trends that Will Impact the Insurance Industry in the Near Future Worldwide Insurtech Trends that Will Impact the Insurance Industry in the Near Future Reviewed by Parvesh Bravo on 8:33 AM Rating: 5

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