The year in blogs 2022
December 30, 2022 11:22 AM
What insurtechs need to scale successfully
Katka Smolarova
Tech-driven innovation is fundamentally reshaping the insurance industry. Emerging capabilities including telematics , artificial intelligence and machine learning have transformed nearly every aspect of the insurance value chain and continue to create new omnichannel experiences for customers.
Insurtechs are a driving force of this evolution, and investors are taking note. In 2021 alone, the total amount of VC invested in insurtechs surpassed$11 billion , double the amount invested in 2020. Private-equity investors are increasingly looking to invest sooner, further increasing the amount of capital flowing into the market.
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Insurtechs are a driving force of this evolution, and investors are taking note. In 2021 alone, the total amount of VC invested in insurtechs surpassed
How embedded insurance is transforming the industry
Christopher Ewing
Having an innovative digital distribution model is one of the most important components for carriers to get ahead today. As more legacy businesses undergo
How data, AI is propelling the insurance digital journey
Suhas Sethi, Yogendra Goyal
Insurance firms are now aggressively adopting digital solutions to overcome decades of inertia in modernizing their businesses. The sector has leveraged the pandemic as a catalyst to accelerate a broad digital agenda and utilize the market inflection to tap into a plethora of exciting opportunities. This change is happening so rapidly that the insurance industry today exhibits a higher maturity in data analytics than several other industries. This insight is one of the key findings of the recently commissioned global analytics study conducted by Forrester Consulting on behalf of WNS.
The sector's headway in data analytics doesn't come as a surprise. Insurance companies are processing copious amounts of data at every stage of a policyholder's lifecycle, from initial application underwriting through to claims settlement. Given that the data is received in structured, semi-structured and unstructured forms, it is important for insurance companies to invest in comprehensive data management solutions that encompass data ingestion, integration, warehousing, and analytics capabilities.
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The sector's headway in data analytics doesn't come as a surprise. Insurance companies are processing copious amounts of data at every stage of a policyholder's lifecycle, from initial application underwriting through to claims settlement. Given that the data is received in structured, semi-structured and unstructured forms, it is important for insurance companies to invest in comprehensive data management solutions that encompass data ingestion, integration, warehousing, and analytics capabilities.
How insurers can innovate with technology, talent
Jane Possell
A<ANDREW MERZ
According to a recent
Why an API architecture accelerates digital transformation
Eric Ayala
Smart agency owners and IT leaders already know they need to automate marketing, ePayments , email and text messages as part of their digital transformation efforts. They are well aware of the need for chatbots, self-service customer portals and remote reporting. And it all needs to be accessible in one unified platform, available to agents and customers anywhere, anytime. The question now is how to get there. What is the most efficient, cost-effective way for insurers to achieve all of this quickly, without disrupting operations?
Legacy agency management platforms often provide a basic toolset, but they don't make adding new technologies or functionalities easy as an agency needs to change and grow. However, the prospect of building a digital-first agency management system in-house isn't in the cards for the majority of independent agencies. The budget and resources required for an in-house build are simply too high. Then, there's the concern of disrupting business processes, negatively impacting customers andagents .
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Legacy agency management platforms often provide a basic toolset, but they don't make adding new technologies or functionalities easy as an agency needs to change and grow. However, the prospect of building a digital-first agency management system in-house isn't in the cards for the majority of independent agencies. The budget and resources required for an in-house build are simply too high. Then, there's the concern of disrupting business processes, negatively impacting customers and
Why the rise of insurtech should matter to actuaries
Carrie Kelley
We define insurtech as the use of emerging hardware, software and user interfaces to address inefficiencies or opportunities in the insurance value chain. Further, we think of the intersection of two dimensions as the focus of our discussion: industry specificity solutions and more recently established market players or solutions.
Annual insurtech startup funding volumes have grown substantially since 2015. Global funding broke the $2.5 billion mark in 2015, up from an average of approximately a half- billion over the prior three years. Insurtech startup funding continued strong reaching a record $7 billion in 2020 despite the pandemic and exceeded $15 billion in 2021. But what's causing this rapid growth in insurtech? Various factors are contributing to growth: customer, distribution, regulation and technology.
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Annual insurtech startup funding volumes have grown substantially since 2015. Global funding broke the $2.5 billion mark in 2015, up from an average of approximately a half- billion over the prior three years. Insurtech startup funding continued strong reaching a record $7 billion in 2020 despite the pandemic and exceeded $15 billion in 2021. But what's causing this rapid growth in insurtech? Various factors are contributing to growth: customer, distribution, regulation and technology.
4 insurance industry challenges, and four digital solutions
Huw Morgan
Over the past two years, the property and casualty insurance industry has had to deal with a number of significant challenges: the pandemic, supply chain management issues, inflation and heightened concern over cyber threats.
Insurers have seen changes in customer perception, a workplace transformation with remote working and the 'great resignation,' evolving customer expectations like services in digital-only, evolving regulations, as well as climate goals being pushed to the forefront.
Demutualization and an increase in M&A activity are becoming increasingly part of an organization's strategy. Mutual insurance firms are going public to raise money from capital markets, larger carriers are merging for the benefit of scale, and, in some regions, cross-border carriers are exiting domestic markets due to a change in strategy and are selling to domestic carriers.
Read the full article.
Insurers have seen changes in customer perception, a workplace transformation with remote working and the 'great resignation,' evolving customer expectations like services in digital-only, evolving regulations, as well as climate goals being pushed to the forefront.
Demutualization and an increase in M&A activity are becoming increasingly part of an organization's strategy. Mutual insurance firms are going public to raise money from capital markets, larger carriers are merging for the benefit of scale, and, in some regions, cross-border carriers are exiting domestic markets due to a change in strategy and are selling to domestic carriers.
How driving data may help insurers personalize marketing campaigns
Ramsey Masri
Let's get personal.
By now, auto insurers large and small are likely aware of growing consumer demand for personalization across the market.
"Personalization - or reaching customers with targeted messaging, offers, and pricing at just the right time - is the future of insurance marketing," according to McKinsey, emphasizing that personalization is key for insurers to compete with digital disruptors. In highlighting the benefits of personalization in insurance, McKinsey also notes that every year, US personal auto insurance carriers in the US could earn an additional $2 billion by retaining 10% of direct premium written switches from one insurer to another.
Read the full article.
By now, auto insurers large and small are likely aware of growing consumer demand for personalization across the market.
"Personalization - or reaching customers with targeted messaging, offers, and pricing at just the right time - is the future of insurance marketing," according to McKinsey, emphasizing that personalization is key for insurers to compete with digital disruptors. In highlighting the benefits of personalization in insurance, McKinsey also notes that every year, US personal auto insurance carriers in the US could earn an additional $2 billion by retaining 10% of direct premium written switches from one insurer to another.
Three lessons learned from mentoring insurtech founders
Dan Reed
Among the elements that differentiate this program are five, day-long objective-setting sessions led by mentors to help founders identify and reach important milestones. I'm fortunate to
Four action items for insurers to succeed in digital transformation
Henri de Combles de Nayves
COVID-19 has accelerated some trends that look certain to reshape the insurance industry. At the same time, some of the problems that have challenged the industry over the past decade have not gone away.
In our new report,Creating value, finding focus: McKinsey Global Insurance Report 2022 , we examine actions insurers can take to address the challenges of this period of intense flux. Here are four imperatives focused on improving insurers' digital transformation.
1. Enhance and personalize customer engagement and experience
New customer behaviors require a shift in distribution. Consumers are embracing digital channels and have become used to delightful experiences with leadingtech companies . They expect the same when buying insurance both online and offline. A seamless, consistent "multi-access" experience in every channel is now the gold standard for insurers. At the same time, most customers still expect some form of advice on most products.
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In our new report,
1. Enhance and personalize customer engagement and experience
New customer behaviors require a shift in distribution. Consumers are embracing digital channels and have become used to delightful experiences with leading