Tech-driven disruption in the insurance industry continues at pace, and we're now entering a new phase — the adaptation of underlying business models.
That's leading to ongoing changes in the distribution segment of the industry, but more excitingly, we are starting to see movement in the fundamentals of insurance — policy creation, underwriting, and claims management.
This report from Business Insider Intelligence, Business Insider's premium research service, will briefly review major changes in the insurtech segment over the past year. It will then examine how startups and legacy players across the insurance value chain are using technology to develop new business models that cut costs or boost revenue, and, in some cases, both. Additionally, we will provide our take on the future of insurance as insurtech continues to proliferate.
Here are some of the key takeaways:
- Funding is flowing into startups and helping them scale, while legacy players have moved beyond initial experiments and are starting to implement new technology throughout their businesses.
- Distribution, the area of the insurance value chain that was first to be disrupted, continues to evolve.
- The fundamentals of insurance — policy creation, underwriting, and claims management — are starting to experience true disruption, while innovation in reinsurance has also continued at pace.
- Insurtechs are using new business models that are enabled by a variety of technologies. In particular, they're using automation, data analytics, connected devices, and machine learning to build holistic policies for consumers that can be switched on and off on-demand.
- Legacy insurers, as opposed to brokers, now have the most to lose — but those that move swiftly still have time to ensure they stay in the game.
In full, the report:
- Reviews major changes in the insurtech segment over the past year.
- Examines how startups and legacy players across distribution, insurance, and reinsurance are using technology to develop new business models.
- Provides our view on what the future of the insurance industry looks like, which Business Insider Intelligence calls Insurtech 2.0.