DIGITAL REVOLUTION : INSURTECH IN THE NEW NORMAL
The past 18 months has transformed industries globally - and insurtech is no exception . We look at the new trends predicted for 2022
WRITTEN BY : JOANNA ENGLAND
With digital transformation almost old news , it hardly comes as a surprise that one of the most technology-reliant sectors on the planet - namely insurtech , has had its fair share of COVID-19 road bumps .
The pandemic has brought change at an almost cellular level . Product demand has changed , with industries now seeing a greater adoption of telematics and a world clamouring for adequate cyber cover . Customer expectations have changed . They want fast , flexible and low cost products that can be arranged in moments and claimed upon just as quickly .
Investment and insurtech However , studies show that 2021 has seen a hard market for insurers , resulting in higher premiums and higher claims rejection rates for customers across the board .
According to a recent study by KPMG , the uncertainty driven by the pandemic has had a significant impact on investment in insurtech . Venture dollars to insurtechs dropped to US $ 2.3bn in the first half of 2020 . This is a marked decline from almost $ 13.4bn for full-year 2019 . Thankfully , 2021 has seen this situation stabilise - but experts don ’ t believe the marketplace is out of the woods yet .
Hermann Fried , Managing Director at bsurance , explains , “ Across the board , we saw companies investing heavily in digital transformation projects so they could more effectively run their businesses and serve their customers during lockdown . Similarly , many more consumers experienced firsthand how fast and easy buying products and services over the internet has become .”
Customer concerns The biggest pandemic related shift has been the customer , confirms Meeri Rebane , CEO and co-founder of INZMO . She believes the pandemic naturally led to concerns about finances and people becoming more risk conscious . However , it ’ s not all plain sailing . “ The problem is the disconnect between the needs of today ’ s consumer and the way in which insurance services are being delivered .”
Rebane points out that today , customers expect the same level of service , personalisation and simplicity from their insurance provider as they do from the tech giants they encounter daily , as well as the response times , seamless interaction and transparency they are accustomed to from their banking providers .
84 November 2021