According to a new report published by WiseGuy Reports (WGR), The Insurtech Insurance Technology Market was valued at $ 31.05 billion in…
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According to a new report published by WiseGuy Reports (WGR), The Insurtech Insurance Technology Market was valued at $ 31.05 billion in 2024 and is estimated to reach $322.7 billion by 2032. It is set for growth at a CAGR of 33.99% from 2025 to 2032.
InsurTech revolution gathers pace
The insurtech insurance technology market is revolutionising the traditional insurance sector by integrating advanced technologies such as artificial intelligence (AI), machine learning (ML), blockchain, and data analytics. InsurTech solutions streamline operations, improve customer experiences, and enable data-driven decision-making. These technologies cater to various aspects of insurance, including underwriting, claims processing, and policy management.
The market has witnessed robust growth due to the rising demand for digital solutions and personalised insurance products. With startups and established insurers collaborating, the industry is becoming more agile and competitive, creating new opportunities for innovation in risk assessment and fraud prevention.
InsurTech’s key players
The InsurTech insurance technology market features a dynamic mix of startups and established players. Key companies include Lemonade, Metromile, and Hippo, known for their innovative approaches to insurance delivery. Traditional insurers such as AXA and Zurich are also investing in InsurTech partnerships to modernise their operations.
Companies like Policybazaar and Root Insurance are leveraging AI and big data to enhance customer engagement. Furthermore, tech giants like Amazon and Google are exploring the sector, further intensifying competition. Moreover, these players focus on integrating advanced technologies and developing user-centric platforms to stay ahead in a rapidly evolving market.
‘FlyEasy’ parametric cover is now available on Zurich Indonesia’s Travel Product: offering real-time lounge access for delayed flights
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Blink Parametric, in partnership with Zurich, has launched flight disruption assistance solution ‘FlyEasy’. Coverage is on the Zurich Indonesia direct channel via the Zurich Edge platform. Leveraging parametric technology, the proposition has been designed to instantly activate coverage benefits upon confirmation of a flight delay. This seamless, fully-digital approach provides ultimate convenience to customers, relieving them of traditional claims processes and allowing them to enjoy their travels with greater peace of mind.
The expansion is part of the agreement signed in January 2024. The award-winning flight delay solution can now be offered to Zurich’s customers across Asia Pacific via the Zurich Edge Platform.
Zurich Asia Pacific Network
This integration is the second rollout this year under the framework agreement to offer Blink Parametric solutions to Zurich Asia Pacific network partners and customers across Singapore, Hong Kong, Malaysia, Indonesia and Japan. The first was with Singapore-based OTA Klook in March.
Once a customer registers their flight details pre-travel, Blink Parametric monitors that flight in real-time. Also, in the event of a flight delay of two-hours, the customer will automatically be offered real-time assistance of complimentary access to a VIP airport lounge. The lounge pass will have extended validity with a shelf-life of six-months if not used on the day of disruption. The benefit will be applicable for single trip and annual multi-trip executive and premier international travel plan insurance customers. No claims filing or application processing is required.
Sukma Darman, Head of Digital, Zurich Indonesia commented, “One of Zurich Edge’s key objectives is to bring a fresh perspective on insurance to our partners and customers. We can then deliver personalised, customer-centric solutions using next-gen technology. Blink Parametric have helped us to achieve successful travel insurance integrations for the Asia Pacific region throughout this year. This includes delivery of innovative real-time assistance for our valued customers when they need us.”
Blink Parametric & FlyEasy
“This latest Zurich Indonesia integration coincides directly with our strategic move to further expand and support our business development and partner activities across the APAC region,” says Richard Pollard, Director of Strategic Accounts, Blink Parametric. “Furthermore, our work with the Zurich team this year has been significant, with two successful launches to date. It’s now possible for Zurich partners to tap into the Zurich Edge platform and deploy our real-time travel assistance solution under the FlyEasy brand with speed and efficiency. Exactly how it should be!”
Blink Parametric is recognised as one of the most innovative and successful providers of travel InsurTech solutions to insurers world-wide. It offers real-time assistance and service choices to travellers impacted by flight disruption events. Blink Parametric travel solutions are fully customisable and designed to deliver operational efficiency. Moreover, processing high frequency, low value travel insurance claims when the traveller needs immediate real-time claim resolution.
Interface looks back on another year of ground-breaking tech transformations and the leaders driving them. We spoke with tech leaders…
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Interface looks back on another year of ground-breaking tech transformations and the leaders driving them. We spoke with tech leaders across a broad spectrum of sectors – from banking, health and telcos to insurance, consulting and government agencies. Read on for a round up of some of the biggest stories in Interface in 2024…
EY: A data-driven company
Global Chief Data Officer, Marco Vernocchi, reflects on the transformation journey at one of the world’s largest professional services organisations.
“Data is pervasive, it’s everywhere and nowhere at the same time. It’s not a physical asset, but it’s a part of every business activity every day. I joined EY in 2019 as the first Global Chief Data Officer. Our vision was to recognise data as a strategic competitive asset for the organisation. Through the efforts of leadership and the Data Office team, we’ve elevated it from a commodity utility to an asset. Furthermore, our formal strategy defined with clarity the purpose, scope, goals and timeline of how we manage data across EY. Bringing it to the centre of what we do has created a competitive asset that is transforming the way we work.”
Lloyds Banking Group: A technology and business strategy
Martyn Atkinson, CIO – Consumer Relationships and Mass Affluent, on Lloyds Banking Group‘s organisational missive around helping Britain prosper, which means building trusted relationships over customer lifetimes by re-imagining what a bank provides.
“We’ve made significant strides in transforming our business for the future,” he reveals. “I’m really proud of what the team have achieved with technology but there’s loads more to go after. It’s a really exciting time as we become a modern, progressive, tech-enabled business. We’ve aimed to maintain pace and an agile mindset. We want to get products and services out to our customers and colleagues and then test and learn to see if what we’re doing is actually making a meaningful difference.”
Arianne Gallagher-Welcher, Executive Director for the USDA Digital Service, in the Office of the OCIO, on the USDA’s tech transformation and how it serves the American people across all 50 states.
“If you’d told me after I graduated law school that I was going to be working at the intersection of talent, HR, law, regulations, and technology and bringing in technologists, AI, and driving innovation and digital delivery, I’d say you were nuts,” she says. “However, it’s been a very interesting and fulfilling journey. I’ve really enjoyed working across a lot of different cross-government agencies. USDA is the first part of my career where I’m really looking at a very specific mission-driven organisation versus cross-agency and cross-government. But I don’t think I’d be able to do that successfully without the really great cross-government experiences I’ve had.”
Virgin Media O2 Business: A telco integration supporting customers
David Cornwell, Director – SMEs, on the unfolding telco integration journey at Virgin Media O2 Business delivering for Business customers
“If you’ve got the wrong culture, you can’t develop your people or navigate change…” David Cornwell is Director of Technical Services for SMEs at Virgin Media O2 Business. He reflects on the technology journey embarked upon in 2021 when two giants of the telco space merged. A new opportunity was seized to support businesses with the secure, reliable and efficient integration of new technology.
Nick Edwards, Group CDO at The AA, on the organisation’s incredible technology transformation and how these changes directly benefit customers.
“2024 has been a milestone year for the business,” explains Edwards. “It marks the completion of the first phase of the future growth strategy we’ve been focused on since the appointment of our new CEO, Jakob Pfaudler.” Revenues have grown by over 20%, allowing The AA to drive customer growth with technology. “All of this has been delivered by our refreshed management team,” he continues. “It reflects the strength of our people across the business and the broader cultural transformation of The AA in the last three years.”
Dave Murphy, Financial Services Lead, Global at Publicis Sapient, gave us the lowdown on its third annual Global Banking Benchmark Study.
The report reveals that artificial intelligence (AI) dominates banks’ digital transformation plans, signalling that their adoption of AI is on the brink of change. “AI, machine learning and GenAI are both the focus and the fuel of banks’ digital transformation efforts,” he says. “The biggest question for executives isn’t about the potential of these technologies. It’s how best to move from experimenting with use cases in pockets of the business to implementing at scale across the enterprise. The right data is key. It’s what powers the models.”
Chief Information Officer Simon Birch and Chief Customer & Transformation Officer Danielle Handley discuss Bupa’s transformation journey across APAC and the positive impact of its Connected Care strategy.
“Connected Care is our primary mission. We’ve been focusing our time, investment and energy to reimagine and connect customer experiences,” says Simon. “It’s an incredibly energising place to be. Delivering our Connected Care proposition to our customers is made possible by the complete focus of the organisation and the alignment leaders and teams have to the Bupa purpose. Curiosity is encouraged with a focus on agility, collaboration and innovation. Ultimately, we are reimagining digital and physical healthcare provision to customers across the region. Furthermore, we are providing our colleagues with amazing new tools to better serve our customers throughout all of our businesses.”
Gregg Aldana, Global Area Vice President, Creator Workflows Specialist Solution Consulting at ServiceNow, on how a disruptive approach to technology can drive innovation.
While the whole world works towards automating as many processes as possible for efficiency’s sake, businesses like ServiceNow are supporting that change evolution. ServiceNow’s platform serves over 7,700 customers across the world in their quest to eliminate manual tasks and become more streamlined. We spoke to Aldana about how it does this and the ways in which technology is evolving.
Innovation Group: Enabling the future of insurance
James Coggin, Group Chief Technology Officer on digital transformation and using InsurTech to disrupt an industry.
“What we’ve achieved at Innovation Group is truly disruptive,” reflects Group Chief Technology Officer James Coggin. “Our acquisition by one of the world’s largest insurance companies validated the strategy we pursued with our Gateway platform. We put the platform at the heart of an ecosystem of insurers, service providers and their customers. It has proved to be a powerful approach.”
Chief Information Officer William Sanson-Mosier on the development of advanced technologies to empower emergency responders and enhance public safety
“Ultimately, my motivation stems from the relationship between individual growth and organisational success. When we invest in our people, and we empower them to innovate with technology and problem-solve, they can deliver exceptional results. In turn, the organisation thrives, solidifying its position as a leader in its field. This virtuous cycle of growth and innovation is what drives me.” CIO William Sanson-Mosier is reflecting on a journey of change for the San Francisco Police Department (SFPD). Ignited by the transformative power of technology to enhance public safety and improve lives.
additiv, a global leader in fintech and digital transformation, has announced the launch of an InsurTech solution with AXA Switzerland
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AXA Switzerland has successfully launched its addProtect bancassurance offering, powered by additiv’s technology platform. Furthermore, this innovative InsurTech solution allows banks to directly protect their mortgage customers against key risks with a simple plug-and-play solution.
addProtect InsurTech solution from additiv
As a seamless plug-and-play solution, addProtect gives banks direct access to the platform without the need for additional integration with existing IT systems. Its user-friendly and intuitive design allows banks to effortlessly integrate the platform into their day-to-day business operations. With the death and payment protection insurance, bank advisors have easy-to-understand products at their disposal. These offer added value to customers beyond the existing offering. The addProtect platform is now available for banks, and an initial pilot will be launched in collaboration with PostFinance.
Samuel Peter, Head of Partnerships at AXA Switzerland, stated:
“With addProtect, AXA is responding to the growing need of customers and banks for appropriate insurance solutions where and when they are needed. The solution creates additional advisory potential and better protection for the customers of our partners’ banks. We look forward to making the solution available to other partners.”
Dieter Lützelschwab, General Manager Switzerland at additiv, added:
“When developing addProtect, we focused on the user experience for the customer and the bank advisor. In addition, our platform provides an easily configurable, modular insurance solution that covers the entire value chain from quotation to claims processing.”
About additiv
additiv empowers the world’s leading financial institutions and brands to create new business models and transform existing ones. additiv’s API-first cloud platform is one of the world’s most powerful solutions for wealth management, banking, credit, and insurance. The InsurTech technology, together with the global ecosystem of regulated financial services providers, opens up new opportunities for banks, insurance companies, asset managers, IFAs and consumer brands to quickly and flexibly offer their own and third-party financial solutions through existing or new customer channels.
Headquartered in Switzerland, with regional offices in Singapore, UAE, Germany, and the UK, and more than 250 employees, additiv serves over 400 financial institutions (banks, insurers, asset managers, pension providers, IFAs, etc.) and brands worldwide.
Analysing “The State of Global Insurtech” report by Dealroom.co, Mundi Ventures, and MAPFRE
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Insurance technology funding from venture capitalists is projected to close at $4.2 billion by the end of the year, according to “The State of Global Insurtech” report by Dealroom.co, Mundi Ventures, and MAPFRE.
Global InsurTech investment
In the first nine months, global insurtech investment already amounted to $3.2 billion. The fourth quarter is expected to see mostly Series B and C funding rounds for breakout-stage startups. These firms are said to be approaching pre-pandemic funding peaks.
“After the uncertainty of previous years, the global insurtech market is now showing signs of further stabilisation,” said Javier Santiso, Chief Executive and GM of Mundi Ventures. “While the frenzy has cooled, we are seeing a positive rebound in early-growth/breakout stages, particularly with Series B funding picking up.”
However, late-stage startups are facing significant funding challenges, with large-scale investments into Series D and later rounds seeing steep declines. The setbacks highlight investor caution around high-valuation, mature companies struggling to maintain momentum. Meanwhile, some late-stage ventures are refocusing on profitable unit economics to position themselves for potential initial public offerings in the next few years.
US leading on InsurTech
Regionally, the US leads InsurTech investment with $1.8 billion so far this year, followed by Europe at $1.1 billion. In contrast, emerging markets like Latin America and Africa continue to lag behind with $37.1 million and $32.4 million, respectively. Although funding in these regions remains limited, experts see growth potential due to a narrowing insurance gap.
“The Latin American ecosystem is resilient, and entrepreneurs continue to seek new formulas, models, and businesses to revitalize the sector,” noted Leire Jiménez, Chief Innovation Officer at MAPFRE. “The region has great potential, more so at a time when the insurance gap is gradually shrinking due to the large volume of opportunities in it.”
B2B growth
According to the report, business-to-business software-as-a-service (B2B SaaS) providers are seizing a significant share of InsurTech funding, capturing 43% of total investments in 2024. This category includes solutions for underwriting, claims management, risk assessment, and administrative efficiency.
Yoram Wijngaarde, founder and CEO of Dealroom.co, commented: “Insurance is a vast industry that has been largely unchanged for hundreds of years. It remains a huge target for tech efficiency and scale, but one that has been difficult to crack.
“Insurtech 2.0 is unbundling the challenge, zeroing in on niches like B2B SaaS, risk management, climate and cyber, with greater traction. Global breakout-stage investment is on track to grow year on year in 2024, and European insurtech VC has already passed 2023’s total. Insurtech is iterating.”
Amelia Lowe, Vice President of Operations at SquareTrade, on the potential for AI to revolutionise InsurTech
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We have all witnessed the growth of AI in the past year. It’s quickly becoming an innate part of how we work. In the UK alone, the number of AI registered companies has increased by over 600% in under a decade. While the size of the AI market is expected to grow to over £800 billion by 2035. AI holds the power to radically reshape the way we live, learn, and conduct business. It can unlock possibilities we once only imagined. In the past two years, we’ve witnessed this transformational potential come to life. It’s driving innovation and redefining industries at an unprecedented pace.
We stand on the brink of a new era. AI is poised to become an integral force that not only enhances our daily lives but also paves the way for a more effective way of doing business and connecting with customers. AI holds the key to supercharging the customer experience, by creating seamless, intelligent customer journeys. So how do we do it?
In today’s highly competitive world, great customer service is essential. Customers do not want to feel like just another number. They want their individual needs to be recognised and addressed with personalised responses.
At SquareTrade, we aim to engage with our customers in ways that feel authentic and personal, even when they are engaging with AI. Our objective is to deliver a level of personalised interaction that was once thought of as unattainable with automated systems. Furthermore, ensuring every customer feels appreciated and understood in each exchange.
Enhancing customer experiences with AI for seamless, intelligent journeys
At the core of any customer relationship is the confidence that issues will be resolved quickly and effectively. Your team, and the people behind your company, play a pivotal role in delivering that trust across all customer touchpoints.
When integrating AI into a business, it is essential to align the technology with the company’s core objectives. For us, the focus has been on driving innovation and streamlining processes while ensuring customer service remains uncompromised. Our goal is to ensure, no matter how AI is implemented, the customer experience feels personal and authentic. Even with automated systems, we want to provide a level of personalised interaction that was once unimaginable. We see AI as an extension of our team. In light of that we apply the same values and principles to those we apply to our team, which focus on trust, transparency and respect.
Have you met Sally?
We now live in a world where AI tools and customer experience must work in harmony. According to Statista, 73% of consumers believe AI can enhance customer experience, with 80% reporting positive interactions with AI so far. Clearly, AI has reached a point where customers can appreciate its benefits during their times of need. It can seamlessly recognise and addresses issues productively.
When businesses explore integrating AI solutions, it’s crucial to align them with their unique standards, customer service approach, and company culture. No two AI solutions are alike. For us, it was vital that any AI implementation seamlessly complemented our existing operations. A key example of how we’ve achieved this is through the introduction of Sally, our AI chatbot. Sally provides one of the quickest and most efficient ways for customers to engage with us when visiting our website. This enhances the user experience while staying true to our service values.
We are already witnessing the benefits of introducing Sally. She consistently achieves high success rates in resolving customer incidents autonomously. By deploying her in a strategic and targeted manner, we can reserve human interactions for more complex queries and claims.
AI Training for Operational Excellence
AI’s potential goes beyond customer interactions. It is increasingly being leveraged for training and education within organisations. In an industry like insurance, where no two claims are the same, InsurTech companies need training systems that prepare team members to adapt to a wide variety of scenarios.
Given that individuals learn in diverse ways and at varying speeds, the ability to create personalised learning experiences is immensely valuable. We see AI training tools as the equivalent of providing each employee with a personal tutor. Moreover, one that can adapt to their unique strengths, challenges, and learning styles.
And the learning doesn’t stop when the training does. AI-powered platforms can now continuously assess performance in real-time. If an employee is struggling in a particular area, the AI can automatically adjust the learning program to address those needs. This ensures ongoing growth and development tailored to each individual.
Fraud Detection
AI is poised to revolutionise fraud detection and prevention. It is becoming an invaluable asset to the teams that monitor for suspicious activity. In the insurance industry, AI can be deployed at multiple levels to enhance fraud detection. For example, through intelligent automation that swiftly analyses large datasets and flags potentially fraudulent claims for further investigation. This can save valuable time and resources.
AI can also enable the creation of predictive models that forecast fraud based on historical data and emerging trends. This helps insurance players to stay one step ahead of evolving threats. These models improve risk assessment accuracy by reducing false positives and allowing us to focus more effectively on genuine risks.
Looking ahead, the potential for AI in fraud detection is immense. AI is breaking new ground in areas where traditional rule-based systems fall short. Its ability to process vast amounts of data in real time, identify patterns and anomalies that would be nearly impossible to detect manually, makes it a game-changer in tackling complex problems.
Embracing AI Advancements
AI has the potential to revolutionise countless industries, but its impact is particularly profound in InsurTech. Given the critical role insurance plays in people’s lives, the opportunities for innovation and improvement are vast.
As an industry, it’s essential we recognise AI’s ability to transform customer experiences. As early adopters, we have witnessed its potential firsthand. We will continue to leverage these advancements to enhance personalised and automated processes. We can bridge language barriers, and create new methods of interaction.
However, our focus must always be on finding the right balance. Identifying where these solutions can deliver the greatest impact in serving customer needs quickly and effectively. Moreover, also ensuring that we retain the opportunity for human connection whenever it is needed. As well as ensuring compliance and security are a core part of how we think about implementing solutions to enhance business operations.
The AXA Group aims to protect over 20 million customers through inclusive insurance globally by 2026
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AXA Egypt and Post for Investment (PFI), the investment arm of Egypt Post, are establishing the first micro-insurance company in Egypt. This strategic collaboration is made possible by leveraging the new insurance law and aims to revolutionise the insurance landscape in the country.
Financial Inclusion
This initiative is fully aligned with AXA´s conviction that postal networks play a crucial role in global financial inclusion. Over a quarter of the world’s adult population accesses formal financial services through their post office. AXA notably signed a partnership with the Universal Postal Union (UPU) in May 2024. Moreover, this collaboration with UPU includes a research program. It will showcase successful postal insurance models and the establishment of the Postal Insurance Technical Assistance Facility (PITAF). This will promote financial inclusion and risk mitigation among underserved populations. Through this partnership, AXA is pushing the boundaries of insurance to better protect all. Solidifying its dedication to inclusive insurance practices worldwide.
The Egypt Post, who will be the main distribution channel of this JV, is a well-respected organisation. It has a strong nationwide presence, renowned for its last mile distribution capabilities and robust brand credibility. Additionally, with over 4000 branches, kiosks, and mobile trucks across all governorates, Egypt Post is an integral part of the country’s infrastructure. It caters to the population with unparalleled reach.
“We believe in the power of collaboration to create lasting change, and this joint venture is a testament to our commitment to inclusive insurance. Together, we are revolutionising the insurance landscape in Egypt to better protect and empower communities, setting new benchmarks for millions seeking reliable and accessible insurance protection.”
Garance Wattez-Richard
Micro-insurance from AXA
The product categories will include both retail and group offerings. Embedded and voluntary options will cater to diverse needs. The range of products will cover various areas. These include hospital cash, personal accident, term life, payment protection, credit life, livestock, and group protection, ensuring comprehensive coverage for the customers.
The ambitious goal is to reach 12 million customers within the first decade of operation. Therefore, underlining the commitment to making a significant impact on the lives of Egyptians through tailored insurance solutions.
This collaboration between AXA EssentiALL, AXA Egypt and PFI/Egypt Post marks a significant milestone in the local insurance industry. It paves the way for inclusive and impactful micro-insurance offerings that have the potential to transform the socio-economic landscape of Egypt. As the first of its kind, this micro-insurance company is poised to set new benchmarks. Furthermore, it can become a beacon of hope for millions of Egyptians seeking reliable and accessible insurance protection.
Our cover story reveals the digital transformation journey at global insurance services company Innovation Group using InsurTech advances to disrupt…
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Our cover story reveals the digital transformation journey at global insurance services company Innovation Group using InsurTech advances to disrupt the industry.
Welcome to the latest issue of Interface magazine!
We’re excited to be publishing the biggest ever issue of Interface this month. It’s packed with insights from the cutting edge of digital technologies across a diverse range of sectors; from InsurTech to Travel via eCommerce, Banking, Manufacturing and Public Services.
Innovation Group: Enabling the Future of Insurance
“What we’ve achieved at Innovation Group is truly disruptive,” reflects Group Chief Technology Officer James Coggin.
“Our acquisition by one of the world’s largest insurance companies validated the strategy we pursued with our Gateway platform. We put the platform at the heart of an ecosystem of insurers, service providers and their customers. It has proved to be a powerful approach.”
Leeds Building Society: Tech Transformation Driven by Data
Carole Roberts, Director of Data at Leeds Building Society, on a digital transformation program driven by the mutual power of people and culture.
“We’ve made the decision to move to a composable architecture. It’s going to give us much more flexibility in the future to be able to swap in and out components rather than one big monolithic environment.”
AvePoint: Securing the Digital Future
Kevin Briggs, Vice President of Public Sector at AvePoint, discusses pioneering data security and management transformation in the global public sector.
“We ensure the security, accessibility and integrity of data for customers with missions from everything from finance and health services, through to national security, innovation, and science.”
Saudia: Taking off on a Digital Journey
Abdulgader Attiah, Chief Data & Technology Officer at Saudia, on the digital transformation program towards becoming an ‘offer and order’ airline.
“By the end of this year we will have established the maturity level for data technology, and our digital and back-office transformations. In 2025 we will begin implementing our retailing concept and the AI features that will drive it. The building blocks will be in place for next year’s initiatives where hyper personalisation for retailing is a must.”
Publicis Sapient: Global Banking Benchmark Study
Dave Murphy, Financial Services Lead, International – gives Interface the lowdown on the third annual Global Banking Benchmark Study and the key findings Publicis Sapient revealed around core modernisation, GenAI, data analytics transformation and payments.
“AI, machine learning and GenAI are both the focus and the fuel of banks’ digital transformation efforts. The biggest question for executives isn’t about the potential of these technologies. It’s how best to move from experimenting with use cases in pockets of the business to implementing at scale across the enterprise. The right data is key. It’s what powers the models.”
Habi: Unleashing liquidity in the LATAM market
Employees at Habi discuss its mission to help customers buy and sell their homes more effectively.
“At Habi, you can talk with the AI agent and you can provide information that streamlines the whole process.”
USDA FPAC: Achieving customer experience balance
Abena Apau and Kimberly Iczkowski, from USDA FPAC on the incredible work the organisation is doing to support farmers across America.
“We’ve created a new structure for ourselves, based on the fact that the digital experience is not the be all and end all, and we have to balance it with the human touch.”
Adecco Group: Digital Transformation driven by business outcomes
Geert Halsberghe, Head of IT, Benelux, at Adecco Group, talks transformation management, cultural consensus, and ensuring digital transformation starts (and stays) focused on solving business problems.
“It’s very crucial to make sure that we aren’t spending money on IT transformation for the sake of IT transformation.”
La Vie en Rose: Outcome-focused Digital Transformation
Éric Champagne, CIO of La Vie en Rose, on ensuring digital transformations are defined by communication, vision, and cultural buy-in.
“I don’t chase after the latest technology just because it seems cool… My focus is on aligning technology with the business strategy and real needs.”
Breitling: Digital Transformation and the omnichannel experience
Rajesh Shanmugasundaram, CTO at Breitling, talks changing customer expectations, data, AI, and digitally transforming to deliver the omnichannel experience.
“The CRM, the marketing, our e-commerce channels — they’ve all matured so much… we’re meeting our customers wherever they are or want to be.”
AXA UK has launched new online InsurTech tools to enable customers to notify claims digitally for both home and car insurance
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AXA customers can now benefit from a new and improved digital service when making an insurance claim. They can use InsurTech tools that allow them to notify losses online. The improved online service allows customers to notify AXA of their claim online anytime they choose. Not only will it be more convenient, but it will also make for a more efficient claims experience. This allows AXA to offer support and resolve claims in a timely manner.
AXA Online Insurance Tools
Car insurance customers can register claims for road traffic accidents, theft of vehicle, lost or stolen keys, misfuelling, storm or flood damage and malicious damage. Using this service gives customers the option of an end-to-end digital notification experience. It offers a broader choice in the ways they can interact with customer service teams.
Home insurance customers can also use the tools to register claims online for theft, escape of water, flood, storm, accidental damage and accidental loss. This is then picked up by the customer service team to take the claim forward.
Making an impact with customers
The improved service is already making an impact with customers. A recent home insurance claim was reviewed and a supplier was instructed within two hours of being registered online. Motor insurance customers have also been able to book in their vehicle for repairs within minutes of notifying AXA of a claim.
“We know that our customers’ expectations have evolved in recent years. They want the claims process to be quick, clear and simple. That’s why we’ve worked hard to ensure that these enhanced digital claims tools offer customers fast and seamless journeys. At a time when they need it most as well as offering increased flexibility and improving their overall experience.”
Suzy Tiffany, Retail Claims Director at AXA UK
AXA has focused on how it can improve customers’ experiences and interactions by providing digital capabilities where possible across its claims journeys. The claims submission service can also be accessed by brokers, enhancing the claims journey for them and their clients.
However, all the usual channels will still be available for brokers and customers to contact the claims teams. Even if they have notified a claim online, they can still pick up the phone and speak to someone if they prefer.
Fuelled by the Covid-19 pandemic and a projected market size of $166.4 billion by 2030, InsurTech companies are revolutionising the…
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Fuelled by the Covid-19 pandemic and a projected market size of $166.4 billion by 2030, InsurTech companies are revolutionising the insurance industry.
These firms offer digital alternatives in a typically slow-to-change industry. Furthermore, their innovative solutions have empowered traditional insurers to accelerate digitalisation and streamline processes.
These are the leading firms that have helped this traditional field both adapt and start rapidly catching up to efficiency trends associated with more dynamic industries.
Introduction to InsurTech Innovation
The insurance industry is undergoing a transformative shift fuelled by InsurTech.
Innovating technologies for insurers is about finding novel solutions to longstanding challenges and harnessing emerging trends to shape the future of the industry.
Insurance leaders are almost unanimous in recognising that innovation as not just important, but critical to future success. Moreover, insurers who fail to embrace InsurTech advances, and the wave of digital insurance products and opportunities they represent, risk falling behind in an increasingly competitive and dynamic industry.
Oscar Health
Oscar Health built itself from the ground up with a tech-first approach focused on member service. This unique strategy aims to make healthcare more accessible and affordable for all Americans.
Oscar’s commitment to exceptional service is reflected in its sky-high Net Promoter Score (NPS) of 50 and a near-perfect 97% member satisfaction rate for virtual care. With a presence in over 577 counties across 20 states, Oscar Health’s impact on the InsuTech industry is undeniable.
NEXT Insurance
A leader in small business insurance, NEXT Insurance offers easy-to-understand, digital coverage designed specifically for the self-employed. Also, their recently launched Copilot tool empowers agents to serve micro-businesses efficiently. Copilot streamlines the process for both sides. Business owners can get quotes and bind coverage online instantly, while agents gain a simplified workflow to boost revenue.
Vouch
Since 2018, Vouch has emerged as a prominent force in the InsurTech space by transforming the way business insurance serves high-growth companies. Vouch recently launched AI Insurance, a groundbreaking product specifically designed to mitigate risks for AI startups in this rapidly developing field.
Hippo
Hippo stands out for its proactive approach to homeowners insurance. Partnering with homeowners to implement smart home devices and personalised safety recommendations, Hippo prioritises preventing hazards before they occur. This commitment has secured their position as a top InsurTech firm, protecting over 200,000 homes across most US states.
Bestow
Bestow prioritises simplifying insurance and boosting financial security for everyone. It believes the process shouldn’t be daunting, so they leverage cutting-edge technology and data throughout the entire value chain to streamline everything. Furthermore, its commitment to innovation is evident in the recent launch of permanent life insurance and the addition of AI features to its underwriting workbench.
QuanTemplate
Founded in 2011, QuanTemplate uses machine learning and big data to empower businesses through digital transformation. Its core offering, a data integration, automation, and analytics platform, equips insurance professionals with the tools to unlock valuable insights and gain a deeper understanding of market dynamics.
Dinghy
Dinghy caters to the changing insurance needs of freelancers and businesses with its innovative pay-as-you-go model and focus on online and mobile accessibility.
This focus on accessibility is further enhanced through its partnership with ARAG, providing ‘Freelance Assist’. This is a unique package combining Dinghy’s flexible insurance with ARAG’s online legal resources tailored for freelance professionals.
CoVi Analytics
CoVi Analytics tackles both regulatory compliance and operational efficiency for insurers. Its AI-powered CORE platform automates complex reporting for evolving regulations, while the app suite featuring Policy 2.0 simplifies risk incident capture and boosts operational efficiency.
ManyPets
ManyPets, formerly known as Bought By Many, has emerged as a leading pet insurance provider by taking a unique approach to customer needs.
Born from a focus on analysing social media commentary, ManyPets uses customer feedback to shape its insurance policies. This customer-centric approach extends to its technology focus, making ManyPets the first pet insurance company to offer form-free online claims.
Shift Technology
Shift Technology provides a suite of AI-powered Software-as-a-Service (SaaS) solutions specifically designed to address the insurance industry’s needs. Its focus lies in fraud detection, empowering insurers with robust protection against financial losses, reputational damage, and cyber threats.
Key Factors for InsurTech Success
Several key factors have fuelled the recent surge in InsurTech innovation. Digitisation plays a crucial role by speeding up information processing, leading to cost reductions, efficiency gains, and the development of new, customer-centric products.
Additionally, personalisation is another key factor, enabling insurers to tailor services to individual needs and preferences. They consider factors like age, location, and lifestyle before providing quotes. Finally, advanced analytics capabilities provide valuable insights into consumer behaviour, allowing insurers to better target customers, while also offering real-time risk assessment data.
McKinsey & Co. is seeing an increase in the number of clients seeking artificial intelligence-linked projects, reports Bloomberg. Faster adoption…
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McKinsey & Co. is seeing an increase in the number of clients seeking artificial intelligence-linked projects, reports Bloomberg. Faster adoption of the technology is helping the consulting titan and its peers boost revenue, across industries like Insurtech, following a period of tumult.
About 40 per cent of the New York-based firm’s client projects involve the technology. The number of AI-related customers in the past 12 months is approaching 500, Rodney Zemmel, senior partner and head of the firm’s digital business, said in an interview.
“We believe the long- or the medium-term economic implications are very real,” Zemmel said. He was a final candidate in the recent global managing partner leadership elections at the firm. According to people familiar with the matter, who asked not to be identified discussing confidential information.
Though there’s some degree of hype around AI, “we’re seeing the organisations that are doing that are getting value from it,” Zemmel said. “It’ll be a little longer, and maybe, a little harder than people think, but we’ve got no doubt that the value is there,” he added.
AI adoption across Insurtech
Among those deploying automation rapidly are the traditional and regulated industries such as banking and insurance, Zemmel said. In a June report, Citigroup Inc. said AI is poised to upend consumer finance and make workers more productive. Additionally, with a high potential for 54 per cent of jobs across banking to be automated. Citi also said that the technology could add $170 billion to the industry’s coffers by 2028.
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon has called AI “critical” to his company’s future success. He also noted the technology can be used to help the firm develop new products, drive customer engagement, improve productivity and enhance risk management.
The surge in automation has come as a relief for the broader consulting industry. It has been battling a slowdown in demand for its traditional services. McKinsey, Ernst & Young and PricewaterhouseCoopers have been cutting jobs to weather the slump. Furthermore, Accenture Plc shares tumbled in March after the company warned it’s seen financial-services customers, including Insurtech, rein in spending on its software.
AI’s rise is also diverting some budgets toward specialist consultancies. Although AI-focused units like McKinsey’s QuantumBlack are growing rapidly, according to Zemmel.
McKinsey – QuantumBlack
McKinsey, which has advised everyone from the U.S.’ Pentagon to China’s Ping An Insurance Group Co., currently has about 2,000 people working across QuantumBlack. It has 7,000 staff in total in tech-related fields, according to Zemmel’s estimates. McKinsey’s headcount stood at about 45,000 globally as of 2023 and revenues were at a record $16 billion.
Zemmel said that the firm is still evaluating how the use of AI will impact its own headcount over the longer run. McKinsey had earlier warned about 3,000 of its consultants that their performance was unsatisfactory and will need to improve.
“We’re certainly planning on being agile about it,” Zemmel said. “One thing that’s clear is everybody in our organization’s going to need to know how to use AI and incorporate in their day-to-day work if they’re going to remain relevant to their clients.”
The insurance sector is witnessing a growing adoption of digital insurance solutions. Machine learning (ML), artificial intelligence (AI), and embedded…
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The insurance sector is witnessing a growing adoption of digital insurance solutions. Machine learning (ML), artificial intelligence (AI), and embedded insurance are at the forefront of this wave across InsurTech.
According toAcumen Research and Consulting, the InsurTech market is expected to reach $166.4 billion by 2030. This projection is reinforced by a high compound annual growth rate (CAGR) of 39.1 percent anticipated between 2022 and 2030. This growth is attributed to a surge of insurance technology innovations.
Introduction to InsurTech
InsurTech, short for “insurance technology,” combines traditional insurance practices with cutting-edge advancements in AI and blockchain. It plays a key role in transforming the insurance industry by making it more efficient, transparent, and accessible. Furthermore, automation, improved risk assessment, and tailored coverage options ensure the digital insurance industry meets evolving consumer demands.
Digital Transformation
InsurTech is a driving force behind the digital transformation of the insurance industry. This transformation isn’t just about software upgrades or automation. It’s a strategic shift that revamps core operations and how insurers deliver value to customers.
Today’s consumers demand personalisation, speed, and convenience in everything, including insurance. They expect instant access to policy details and quick claims resolution—areas where traditional systems struggle. InsurTech empowers insurers to meet these changing demands by enabling customised interactions and faster service.
Customer Experience
InsurTech companies are transforming customer interactions with insurance. Convenience, speed, and personalisation are now priorities.
This change is driven by a focus on improved customer experience. Digital platforms and mobile apps from InsurTech firms make buying policies, managing them, and filing claims easier. Self-service tools and chatbots provide instant support and assistance, reducing the need for traditional customer service channels.
Efficiency gains with InsurTech
A crucial element of InsurTech’s contribution to the insurance industry lies in claims management. InsurTech streamlines insurance claims by automating tasks with AI and ML. This means faster claim assessments, processing, and payouts for policyholders.
InsurTech also boosts efficiency for insurers by automating tasks, which can lead to lower operating costs. These lower costs could potentially translate to reduced premiums for consumers. Consequently, digital insurance becomes more accessible and cost-effective.
Case Studies
Several insurance companies are demonstrating success through innovative InsurTech solutions.Chapter, for instance, uses online tools to connect users with advisors and advocates. These experts help people navigate the complexities of enrollment. They ensure people understand their options, deadlines, and how to choose the right plan for their needs.
Health plan selection is another area where InsurTech is making a difference.GoHealth utilises a sophisticated platform powered by ML algorithms to match consumers with plans tailored to their unique needs. Licensed agents and dedicated telecare teams offer support throughout the selection process and beyond.
Future Prospects
InsurTech presents a future brimming with possibilities for the insurance industry. However, as more processes become digital, security concerns come into focus. Future Processing’s InsurTech survey revealed that81 percent of respondents believe insurers need stronger cybersecurity policies.
This underlines the need to revisit cybersecurity practices as digital transformation progresses. Looking forward, developments in AI and tools like ChatGPT, along with data privacy concerns, suggest quality will be the foundation of InsurTech’s future. By focusing on high-quality data and strong security, insurers can gain deeper customer insights and significantly improve the customer experience.
Our cover story this month focuses on the work of Chief Information Officer Simon Birch and Chief Customer & Transformation…
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Our cover story this month focuses on the work of Chief Information Officer Simon Birch and Chief Customer & Transformation Officer Danielle Handley leading Bupa’s digital transformation journey across APAC and delivering a positive impact with its Connected Care strategy.
Welcome to the latest issue of Interface magazine!
“ConnectedCare is our primary mission and we’ve been spearheading time, investment and creativity to reinvent and reinvigorate customer experiences,” says APAC CIO Simon Birch. “Delivering that ConnectedCare proposition to our customers is made possible by the collegiate focus of the organisation. Ultimately, what we’re able to achieve is supporting our most important colleagues, our healthcare practitioners working across our facilities.”
Reflecting on that transformation goal, Chief Customer & Transformation Officer Danielle Handley believes that stakeholder engagement and alignment, while building relationships across the enterprise, have been key to their early success. “We’ve found the champions within the enterprise who are going to form part of the coalition of the willing to start to lead transformation here at Bupa.”
Vodafone: Personalising Embedded Insurance
Halil Teksal, Global Head of Fintech at Vodafone, discusses disruption in insurance, personalisation, and giving customers exactly what they need at the right time. “The main thing we’re aiming for is simplicity. How can we have really easy-to-use personalised solutions? At the end of the day, that’s what customers want. When they buy a smart device, they want to buy the insurance quickly from a reliable provider. It’s important that we satisfy all of those needs.”
Young businessman writing on adhesive notes on glass partition in modern office, ideas, innovation, planning, strategy
Walden Group: Advanced technology for a healthier tomorrow
Denis Connolly, CIO of Walden Group and CEO of Walden Digital, talks about the incredible work the organisation is doing to leverage data and technology for the overall improvement of the world’s health. “We’ve created all these new initiatives just in the last year or so, moving from technology being a cost centre to being an R&D and development-focused organisation.”
Also in this issue, Samer Fouani, Head of Cyber Transformation & Identity Access Management at TAL discusses the cyber journey for colleagues and customers at one of Australia’s leading insurers; Mark Turner, Chief Commercial Officer at Pulsant, explores how medium-sized businesses can best leverage new developments in AI; Martin Hartley, Group Chief Commercial Officer of emagine, examined the role of artificial intelligence in personalising the customer experience for financial services and Marius Stäcker, CEO of ToolTime, shares his four top tips for successfully implementing new software and driving digital transformation.
A closer look at how artificial intelligence, machine learning, blockchain, IoT, and more technologies are transforming the InsurTech space.
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Customer expectations are changing fast. Great digital experiences set the standard, no matter the industry. This means insurance companies are no longer competing only with each other, but with every positive digital experience customers encounter daily.
Technology is changing how the InsurTech space serves its customers
Technologies like artificial intelligence (AI), the Internet of Things (IoT), and cloud computing revolutionise insurance. Outdated systems are being replaced with modern solutions, which offer greater efficiency, security, and data-driven insights.
This digital transformation enables a new generation of insurance services. For example, automated claims processing uses AI to speed up workflows and payouts. Additionally, AI helps detect fraud to protect both insurers and policyholders.
Insurance technology is also improving the customer experience. From personalised plans to user-friendly interfaces, digitalisation is making insurance more accessible and convenient.
AI and Machine Learning
People want more personalised experiences with insurance products and services. InsurTech advances, powered by AI and machine learning (ML), can help insurers meet this demand.
ML algorithms analyse massive amounts of customer data, including behaviour and habits. This allows insurers to tailor insurance products and services to individual needs and create unique customer journeys.
Beyond personalisation, AI has the potential to streamline core insurance processes. AI can speed up claim processing and streamline underwriting. Faster data access and reduced human error lead to more accurate and efficient reporting.
A report by McKinsey suggests that AI could significantly change the insurance industry. It could shift the focus from reacting to problems to preventing them. This proactive approach would benefit everyone involved—brokers, consumers, and insurers.
Blockchain Technology
Blockchain technology offers a powerful solution for data security. It stores vital insurance information, such as claims and payments, in secure blocks on a shared ledger. Any attempt to alter this data would change the entire chain and make tampering easily detectable.
A study by Boston Consulting Group shows 60 percent of insurance companies are actively investing in blockchain. Additionally, 80 percent of C-suite executives in these companies believe blockchain has the potential to significantly improve efficiency.
IoT and Telematics
Many consumers are now willing to share personal data for lower insurance costs. This willingness unlocks the potential of the IoT in the insurance industry.
IoT automates data collection from various sources, like smart home devices, car sensors, and wearables. This data becomes a key source of real-world information for insurance technology. By analysing it, insurers can improve risk assessment accuracy and refine pricing based on individual behaviour.
Telematics devices take personalised insurance a step further, particularly in car insurance. These devices, equipped with GPS and motion sensors, track driving habits in real time. They collect data on speed, location, time of day, and other factors linked to accident claims. This comprehensive data allows insurers to create even more tailored insurance policies.
Case Studies
Several insurance companies are already using InsurTech advances to streamline processes and improve risk assessment.
For example, FRISS uses AI software to quickly detect suspicious claims. Their system analyses data to find possible fraud networks and hidden patterns. With this, FRISS cuts claims handling time by 66 percent and saves insurers money.
Chubb Insurance is another example that shows the value of combining IoT devices with data analysis tools. By constantly monitoring environmental factors with sensors, Chubb can predict potential property damage. This proactive approach lets them offer personalised premiums based on risk profiles, ultimately helping policyholders avoid expensive incidents.
Future Prospects
Grand View Research projects the global InsurTech market size to expand at a compound annual growth rate (CAGR) of 52.7 percent from 2023 to 2030. This rapid transformation will be driven by advancements in various technologies, each presenting both opportunities and challenges.
As more insurance processes become digitalised, concerns around cybersecurity naturally rise. A Future Processing survey underscores this concern, revealing that 81 percent of respondents believe insurers need stronger cybersecurity policies.
The quality of data and security practices will be the cornerstones of successful InsurTech implementation. AI relies heavily on data, while strong security protects sensitive customer information. By prioritising these aspects, insurers can unlock deeper customer understanding and improve the customer experience.
An efficient and timely claims process is important in the insurance sector. Many companies use insurance technology or InsurTech innovations…
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An efficient and timely claims process is important in the insurance sector. Many companies use insurance technology or InsurTech innovations to streamline this complex process.
The traditional insurance claim process is commonly stressful, lengthy, and vulnerable to fraud. However, by embracing digital innovations, such as AI, big data analysis, and machine learning, insurance companies can simplify this process and give a more positive customer experience.
Role of InsurTech
InsurTech solutions streamline claims processes by using user-friendly mobile apps or websites. Customers do not need to make cumbersome phone calls, paperwork, or office visits. Instead, claims can be initiated and managed seamlessly through the digital platforms.
InsurTech accelerates the claims process, reduces turnaround time, and minimises customers’ stress. It also provides an opportunity for immediate insurance claim submission, such as after a car accident.
Automation
Digital insurance employs advanced technology like AI and automation, unlocking many benefits for customers’ claim processes. Reporting automation tools play an important role in claims processing by simplifying and accelerating the process.
An automated system can be applied for data entry and extraction. AI algorithms can scan and extract document details from police or medical reports and automatically fill out digital claim forms.
Meanwhile, automated chatbots allow customers to access around-the-clock services. Policyholders can ask questions, report claims, and get information more conveniently using this feature rather than relying on office time-bound human employees.
Fraud Detection
InsurTech enhances fraud detection in claims processing by using predictive analytics tools. Fraud detection is important for insurance providers to avoid false claims or exaggerated losses that can lead to significant financial losses.
AI machine learning tools can detect suspicious patterns from a vast amount of data, allowing insurers to identify potential fraud. This helps insurance companies reduce losses from fraud and mitigate potential risks.
InsurTech Case Studies
PwC reveals that 57 percent of insurance companies have invested in AI and machine learning technologies to enhance operational efficiencies.
Lemonade, a digital insurance company for renters and insurance, has successfully used AI to underwrite policies and claims. The company achieved a faster and more transparent claim process for customers. The digital automated process also reduces the processing time and keeps costs down.
Meanwhile, Metromile, an InsurTech company that provides pay-per-mile car insurance, offers AI-assisted automated claims named AVA. AVA can give guidance through damage photo collection and verify coverage. This system can also connect customers to repair shops and offer the option of reserving a vehicle if they have rental coverage.
Future Prospects
InsurTech’s potential impact on claims processing is expected to make a significant shift in the future. AI will be more integrated into the financial industry and will reshape the claim processes.
According to McKinsey’s prediction, claims processing will be largely automated by 2030, with advanced algorithms handling initial routing. IoT sensors and emerging technologies like drones will replace traditional methods for reporting claims. Policyholders will also use video streaming for damage assessments that AI can immediately assess to detect fraudulent activities.
Automated customer chatbots will manage most interactions, while human involvement will only be for complex claims and risk management. Integrated IoT and data aggregation will allow insurers to file accurate claims rapidly during major disasters.
InsurTech is an emerging sector of huge importance. It transforms an old and crucial industry by creating insurance technology that brings major tech advances to enable widespread change.
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The top InsurTech companies aim to revolutionise the industry with a rapidly evolving and advancing series of insurance technologies. All of these seek to make insurance more accessible and customer-centric. This improves insurance products and creates opportunities for new ones.
By adopting a mobile-first approach, InsurTech reduces the need for face-to-face interactions. This means lower operational costs, allowing InsurTech startups to offer more competitive pricing models.
The InsurTech landscape owes its growth to startups. These early-stage companies disrupt the insurance sector by bringing new tools to the game. These include AI, which can handle traditionally resource-exhausting and time-consuming tasks, such as determining the right policies to offer customers.
According to a report by Spherical Insights, the InsurTech market was valued at $3.85 billion in 2021. Based on a CAGR of 52 percent, Spherical forecasts that it will grow to $166.7 billion by 2030. This growth is mainly fuelled by Insurtech startups. Read on to discover the top Insurtech companies to watch in 2024, as they make strides forward into a period of accelerating growth.
According to a report by Spherical Insights, the InsurTech market was valued at $3.85 billion in 2021. Based on a CAGR of 52 percent, Spherical forecasts that it will grow to $166.7 billion by 2030. This growth is mainly fuelled by Insurtech startups.
Read on to discover the top Insurtech companies to watch in 2024, as they make strides forward into a period of accelerating growth.
1. Lemonade
Lemonade brands itself as “an insurance company built for the 21st century.” With Maya, its cutting-edge AI tool, Lemonade can “craft the perfect insurance” coverage in as little as 90 seconds. The AI also contributes to the seamlessness of the insurance claims process, with customers needing to wait only three minutes after claim submission to get paid.
In November 2023, Lemonade was serving2 million active customers. It ticked the first million mark in 2020. Throughout the period, the premium per customer increased by 70 percent.
InQ1 2024, the average premium per customer was $379, an eight percent increase year on year. The in-force premium was $749. The figure represents a 22 percent increase year-on-year and corresponds to total revenue growth of 25 percent.
2. NEXT Insurance
Next Insurance caters to small businesses, offering products such as workers’ compensation and equipment insurance. The company provides coverage for diverse professions, from contractors to entertainers.
Next has developed an AI tool called Copilot, not to be confused with Microsoft’s AI with the same name. The tool allows insurance agents to increase operational efficiency and profitability by streamlining the quoting and binding process. It also helps reduce underwriting delays.
Established in 2016, Next was serving500,000 active customers in 2023, an increase from 420,000 in 2022. It has received $1.1 billion in funding from big-name investors such as Munich Re, Allstate, and Allianz X. Per November 2023, the company has a market valuation of $2.5 billion.
3. Oscar
The Oscar Health team provides digital-based health insurance. The company offers services for individuals and families. Through its app, customers can access remote health care anywhere, anytime. Established in 2012, Oscar has over1.4 million customers across 20 states of the US.
4. Metromile
Metromile revolutionises automobile insurance with its premium-per-mile scheme. Premium rates are based on driving habits, which is claimed to allow customers to save around 47 percent, or $947 per year, compared to traditional car insurance.
Metromile wasacquired by Lemonade in 2022 for $145 million worth of LMND shares. In return, Lemonade took control of “over $155 million in cash, over $110 million in car premiums, an insurance entity with 49 state licenses, and precision data from 500 million car trips.”
5. Asurion
Asurion specialises in technology care. This InsurTech company provides electronic equipment coverage, catering to owners of smartphones, laptops, TVs, and smart home appliances. By using its services, customers gain access to quick repairs of only 45 minutes for their electronics through local repair experts and tech repair stores across the US.
6. Zego
Zego offers smart and flexible insurance coverage for self-employed drivers and fleets. A wide selection of insurance products is available to meet the needs of private taxi companies, haulage truck drivers, and courier vans. Zego became theUK’s first InsurTech unicorn in 2021 after raising $150 million, bringing its valuation to $1.1 billion.
7. Hippo Insurance
Hippo Insurance combines home insurance with smart home devices. The company provides customers with smart home monitoring systems to detect potential issues. These include leak sensors, motion detectors, and smart smoke alarms. In 2024, Hippo provides coverage for 200 US households.
8. Pie Insurance
Pie Insurance caters to small businesses. This InsurTech startup uses advanced analytics tools to determine the best premiums, considering comprehensive possible risks. The company aims to make insurance affordable and accessible to small businesses in the US.
9. Clearcover
Clearcover uses AI technology to speed the claims process up to just seven minutes. The startup has raised a total of$515 million over nine financing rounds. Its latest funding round was in April 2024, when it raised $55 million in a second Series E. The investment round was led by Omers Venture, with several undisclosed investors participating.
10. Shift Technology
Shift Technology is a claims fraud detection platform that uses AI to detect fake claims in real time. This InsurTech platform also detects underwriting risks and improper payments. Its financial crime detection feature ensures compliance with AML and KYC regulations. Shift’s technology speeds up the decision-making process, allowing insurance companies to operate with greater efficiency. With a market capitalisation of $2.89 million per June 2024, the company has raised $316 million since its inception in 2014, raising $219 million in its latest Series D.
These top InsurTech companies are disrupting the market with advanced technologies such as AI tools. With their capabilities to streamline user experience, lower costs, and improve decision-making processes, these InsurTech startups will continue to challenge legacy insurance companies.
Tim Hardcastle, CEO and Co-Founder of INSTANDA, on what will be top of mind for insurers in 2021 and why technology will be critical
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“Insurance is the industry of risk. But the depth and breadth of COVID-19 – its impact on society and the economy – was not in insurers’ near-term planning models this year. Insurers and their customers enter 2021 in a world transformed. Physical and mental barriers have deteriorated. Walls separating businesses from customers have collapsed, with the discovery that digital can strengthen customer relationships.
ByTim Hardcastle, CEO and Co-Founder of INSTANDA
“As we enter this new world, insurance must reboot and reenergise. Reboot their business development plans, by investing in sophisticated digital tools and partnering with organisations that accelerate innovation. Reenergise their propositions and offerings, so their products continue to excite and stimulate customers.
“In practice, this means focusing on two areas: personalisation at scale and differentiation through digital engagement. Think Netflix and Disney plus, but in insurance.
“There is a more urgent pressure behind this need: cost. To avert another drop in earnings, insurers need to accelerate their digitalisation plans so they can take full advantage of reducing costs to industry leading levels of less than $1 per policy.
“What surprises could 2021 have in store? A potentially unavoidable one is the rapid acceleration of contextual or immersed insurance. Where customers buy insurance through another retail or business interaction – say, a new TV in Tesco – and insurance is embedded and sold through that. This not-so-surprise will bring new businesses challenges that only digital platforms can help solve.
“Another area which is exciting in the year ahead is the industry’s appetite to develop wider service-based offerings, such as pet and cyber insurance which provide extensive service wrappers. A pet wrapper, for example, may include advice on pet health and best practise to keep your pet healthy, with the aim to reduce bills and the insurance claim. This reflects the recognition of serving customers with a wider proposition than simply the claim pay-out.
“Our own business has adapted to respond to the challenge’s insurers faced this year. We’ve accelerated our plans to add more capability to the platform, such as launching our integration marketplace and digital billing and claims. We’ve done so in anticipation of a greater need from insurers to be braver in their approach to meet customer demand.
“Finally, I think the industry can expect a rebounding next year. There has been a downgrade in analysts’ predictions of 2020 results for several major players, as revenues slipped and claims increased. But we are also seeing rate increases in other segments so we anticipate 2021 earnings will rebound.
“2020 has brought a year of surprises to an industry that has dealt with some of the worst kinds of surprises, for centuries. A lesson it has taught – as surprises often do – is the necessity of adaptability; to be able to respond to customer demand and regulation, quickly.
“To prepare for this new year, organisations need to look at their existing infrastructure and business models and ask themselves: am I ready?”
Over these last three years we have seen how the essence of ‘insurtech’ has evolved. The 300 insurtechs that we…
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Over these last three years we have seen how the essence of ‘insurtech’ has evolved. The 300 insurtechs that we had on stage so far, and the 2,500 that we have in our insurtech database, give us a pretty good picture of what has changed. But also of how things will develop in the coming years. Looking back and ahead, we distinguish four waves of insurtech. With each wave driving the future of insurance in a new direction. By Roger Peverelli and Reggy de Feniks
THE FIRST WAVE OF INSURTECH: CHALLENGERS
Three years ago, in 2016, ‘insurtech’ mostly meant ‘challengers’. New
entrants were out there to attack the established order. Everyone spoke about ‘Disruption’.
The main driver for this first wave? Eroding entry barriers – due to new
technologies. New entrants took the lead in intelligent and innovative use of
technology and data, designing new ways of working. New ways of working that solved
the frictions that customers experienced when working with incumbents.
Oscar, the famous US challenger, put it
this way “We didn’t start this company because we love health insurance. Quite
the opposite in fact.”
We actually took a closer look at the value
proposition of many of these new players. Almost all of them promise that they
solve the main reasons for dissatisfaction.
We listed those issues below. Across the
globe, customers have the same kind of complaints about insurance firms. We
concluded that virtually all pain points that customers experience are related
to ‘simplicity’ and ‘being personal’.
Of course, there is still sufficient room to improve here. But all these issues are in scope of operational excellence. So, it would be fair to say that all these issues should be solved shortly, and in fact, quite a few are solved already. We already see that Net Promoter Scores are improving. Perhaps not everywhere, but we’re getting there.
Maybe this is the reason why so far only a
few of these new players succeeded in acquiring a significant market share. Apparently,
focus on solving operational issues only, simply is not enough to create a
sustainable competitive advantage.
The few winning new entrants are the ones that not only solve pain points but which have a truly distinctive new business model on top of that.
A great example of a new entrant with such
a winning distinctive business model is of course Lemonade. We were honoured
that Daniel Schreiber, the co-founder and CEO of Lemonade, shared his vision at
our recent DIA Amsterdam edition. Lemonade combines AI with behavioural
economics into new business models, and moreover, new value for customers.
The impact of Challengers in terms of
market share may still be limited. But that does not mean that the Challengers
are not important. The impact they have on market dynamics is significant, but
on a different level.
Their focus on less frictions and new
service levels has changed the expectations of customers. New entrants set
new standards. Customers expect the traditional players to offer comparable
innovative services as well. This makes incumbents realise, that they really
need to step up to the plate, if they want to keep up.
