Gaining a comprehensive understanding of the latest trends in Insurtech is crucial for the sustained success of any insurance venture. It not only allows companies to stay ahead of industry norms and demands but also ensures that customers are satisfied with their services.
The Insurance Industry has always been at the forefront of innovation, constantly investing in new technologies and applications to drive growth. To ensure the long-term success of any insurance venture, it is crucial to have a deep understanding of the top trends in Insurtech. This not only allows companies to stay in line with industry standards and expectations but also enables them to deliver exceptional customer satisfaction. This article aims to shed light on some of the key trends that we anticipate for 2020 and beyond, as they will undoubtedly shape the insurance landscape in the coming decade.
2020 Trends
This information is derived from our extensive industry analysis and in-depth interviews. These conversations have provided valuable insights and data for this article.
Life and Health Insurance Trends for 2020
The life and health sector within the Insurance industry holds immense potential for growth and innovation. As modern technology continues to advance, we now have the tools and resources to cater to individuals' specific needs and optimize the products and services we offer. From personalized chatbots to real-time data streams through the Internet of Things (IoT), these emerging fields are steadily gaining popularity and recognition within the insurance industry. These trends are projected to continue shaping the landscape in the coming year and beyond.
1. Emphasizing Customer Experience
To stay ahead of the game, insurance companies should take inspiration from startups and innovators by prioritizing the enhancement of customer experience. By creating user-friendly platforms, insurers can appeal to the preferences of the latest generation of consumers. Streamlining the insurance process through automation, from selecting and purchasing insurance to claims processing, can greatly simplify the customer journey.
For instance, the advancements in computer vision achieved by AI startups have immense potential in the medical field, allowing for visual diagnosis of external illnesses like skin diseases. Machine learning has also made significant progress in natural language processing, enabling the development of programs such as chatbots. This technology empowers customers to ask insurance and medical questions without the need for human interaction, resulting in a more accurate, cost-effective, and efficient process.
2. Accessing the Internet of Things (IoT)
The Internet of Things (IoT) continues to captivate and maintain widespread interest. By accessing data on customer behavior and individual variables, the IoT offers valuable insights that can be used to optimize and refine products and services. Additionally, AI can analyze this data, uncovering new trends and generating innovative ideas. Wearable devices play a crucial role in this process, tracking movements, habits, and health data to create comprehensive datasets. By combining this information with medical data, we can conclude previously unattainable.
3. Data Sources and Holistic Datasets
Data management startups have experienced significant growth in the professional market, providing us with access to a wide range of datasets that were previously inaccessible. The field of data management itself has become a thriving industry, with a continuous interest in Insurtech. This growth can be attributed to the Internet of Things (IoT) mentioned earlier, which collects raw data, as well as new techniques for data analysis and processing.
4. Connecting Data Management to AI
The dynamic and groundbreaking synergy between data management and AI is opening up a world of possibilities. This exciting combination allows for groundbreaking insights in fields like medicine, leading to advancements in early disease detection and prevention. Startups are particularly drawn to this area, offering innovative solutions for remote and wearable-based early disease detection.
5. Medical Apps gain value through remote approaches
In today's digital age, remote technology has become a game-changer in the healthcare industry. Its versatile applications allow for the analysis and diagnosis of issues in a person's microbiome and related health concerns. This valuable data is mostly collected from wearable devices, enabling healthcare providers to offer improved customer service, enhanced efficiency, and greater accuracy, ultimately leading to an enhanced customer experience. Furthermore, telemedicine apps have become invaluable tools, connecting individuals with qualified doctors for online consultations, diagnoses, and treatment plans. These solutions have proven particularly critical during these challenging times of the COVID-19 pandemic.
Property and Casualty Insurance Trends for 2020
The property and casualty sector is proving to be more technologically advanced than one might expect. Thanks to advancements in technology, we now can gather a wealth of customer data and optimize our services accordingly. From innovations in automobile technology to advancements in property-related tech, we are expanding the horizons of data collection and analysis. These trends are at the forefront of consistent innovation and are expected to have a significant presence in the coming year.
1. Growing IoT Data and AI Analytics
The Internet of Things (IoT) and Artificial Intelligence (AI) have extended their influence beyond the life and health sector to encompass property and casualty insurance as well. Their impact can be seen in various aspects, such as the integration of IoT devices like Google Nest and other smart home technologies into consumers' everyday lives. This integration has allowed Hippo Mountain View's startup and other innovative companies to delve into the property and casualty insurance market, offering a range of solutions to protect homes against fire, water damage, and break-ins. With the abundance of IoT data and the power of AI analysis, these advancements are reshaping the property and casualty insurance landscape, providing customers with enhanced protection and peace of mind.
With the insurance policy, homeowners can take advantage of a cutting-edge 2-sensor smart home monitoring system that provides comprehensive protection against fire, water damage, and break-ins. These advanced devices and technologies not only offer peace of mind but also gather valuable data on consumer habits and property management. By leveraging the power of AI, insurance companies can analyze this data in innovative ways, leading to personalized and efficient services for their customers.
2. More Data Means the Rise of Data Management
The Internet of Things (IoT) is revolutionizing the insurance industry by providing a wealth of data sources for startups and companies to tap into. As we look towards the future, there has been a significant increase in the quantity and variety of available data. These new sources range from satellite imagery to foot traffic, offering insurers a vast amount of information to analyze and manage. With this abundance of data at our disposal, the possibilities for innovation and personalized services are endless.
3. Fintech and the Integration of API
The financial industry has experienced a noticeable surge in its recognition and eagerness to embrace state-of-the-art technology. This rapid drive towards innovation has led to a surge in the incorporation of APIs in fresh and thrilling ways. For instance, in January 2018, the United Kingdom implemented its Open Banking Statement, which compelled major banks to provide data to third parties via APIs. This groundbreaking initiative has directly influenced the emergence of innovative startups and the creation of new use cases throughout the industry. As we enter this new decade, we can expect increased competition from both industry insiders and external players.
4. Telematics
The integration of telecommunications and information technology, known as telematics, has become an integral part of our daily lives. With its widespread adoption, telematics already has a vast customer base. Notably, industries like automotive have been consistently focused on advancing their telematic technology to enhance customer experiences and improve overall efficiency.
A great example is . Voom Insurance's inaugural offering SkyWatch.AI, harnesses the capabilities of machine learning to evaluate and minimize risks, delivering on-demand insurance to a multitude of drone pilots throughout the United States.
Another key player in the telematics industry is Autobon , which specializes in transforming existing semi-trucks in America into vehicles that are safer and more efficient. They have developed their own customized Transportation Management System that seamlessly integrates with vehicle telematics, automating the highway portion of long-haul trips. In addition, Autobon offers a range of custom APIs, including GPS Tracking, Real-Time Video Feedback, and Delivery Information, further enhancing the capabilities and performance of their telematics solutions.
In conclusion, with the continuous advancement and integration of technology into our daily lives, we can expect a steady stream of innovative ideas and solutions in the telematics industry. By staying informed about the latest trends and leading innovations, we can accurately predict and adapt to the ever-evolving landscape of this rapidly growing industry. Through impartial evaluations and assessments, these trends are projected to persist and gain momentum throughout the year 2020.
