Despite anticipated challenges for startups in various sectors, the insurtech domain is poised to further disrupt the traditional insurance market, addressing the prevalent issues its consumers confront daily. Valued at $8bn in 2021, projections indicate the global insurtech market will surge to nearly $30bn by 2026.
Rob Moffat from Balderton Capital emphasizes the strength of long-standing insurance giants. He believes their historical profitability and expertise in underwriting and claims management gives them an edge. Nevertheless, Moffat highlights that successful insurtechs of the future will be those that maintain robust growth metrics while achieving favorable loss and combined ratios.
The cost of living crisis, a significant concern in 2022, will continue to be a primary focus for insurtech companies in 2023, as stated by Nick Ielpo, UK’s representative for insurtech Prima. To address this, insurtechs must prioritize providing tangible value to consumers, especially through product and service rollouts that offer immediate financial benefits.
Prima, boasting 2.5 million active customers in Italy by mid-2022, saw a remarkable 70% YoY growth and rapidly expanded its footprint in the UK. Ielpo points out three guiding principles for Prima in 2023: leveraging technology to minimize overheads, adopting a data-centric approach for strategic decisions, and investing in top-tier talent to drive customer satisfaction.
Customer experience remains at the heart of the insurance industry. Thus, despite technological advancements, human interaction remains irreplaceable. Prima, understanding this need, established a UK-based customer support and claims management system. Ielpo underscores the importance of blending technology with human touch, ensuring customers have a reliable channel for communication during challenging times.
Highlighting the transformation in the insurance sector, Yael Wissner-Levy from insurtech Lemonade points out that technological advancements have simplified the insurance process, attracting first-time buyers. Furthermore, the competitive pricing strategies and efficiencies of insurtechs, coupled with speedy claim resolutions, offer unparalleled advantages to consumers.
Traditional insurance companies, once data powerhouses, now share the spotlight with tech firms and unconventional insurance entities. Wissner-Levy emphasizes that insurtechs, built on advanced technological foundations, are revolutionizing the customer experience. With more automated internal processes, insurtechs generate vast data, making their systems more efficient and cost-effective. Ielpo envisions 2023 as a pivotal year for these transformative trends in insurtech.
Our Perspective
We believe that the insurtech sector’s growth trajectory underscores the importance of integrating innovative technology with consumer-centric solutions. The shift from traditional insurance methods to more digital, efficient, and personalized approaches is reshaping the industry landscape. By leveraging data analytics, AI, and automation, insurtechs can tailor offerings to individual consumer needs, enhancing customer satisfaction and trust. As digital consultants, we champion this evolution and foresee a future where technology and human touch coalesce to redefine the insurance experience.
Pinnacle Digital Advisors
This article was original published in: https://sifted.eu/articles/insurtech-2023-experts-brnd