4 Factors Driving Growth in InsureTech

It was only a few years ago that insurers and industry thought-leaders were saying that the future of insurance would include wearable devices, digital solutions and rewards as part of comprehensive policies. That futuristic idea happened quickly. Today, InsureTech is a booming space; in large part because insurance companies are keen to incorporate cutting-edge technologies and offerings into their existing products. 


There are some major factors driving the growth of InsureTech:

 

  1. Demand for enhanced digital experiences:

With the growing ubiquity of technology and the increasingly seamless experiences the average person has with technology on a daily basis, the bar is high for insurers to deliver an equally streamlined, simple and engaging digital experience for their end-users. Insurers face increasing pressure to keep up and evolve with new technologies, as well as the expectations of their customers. 

 

2. Younger customers:

 

 Insurers will need to make some changes to appeal to younger customers who will expect a different product and experience than their parents and grandparents had. They’ll demand a simple and fast digital experience, and be wooed by policies offering rewards. Surveys have shown that this group prefers to purchase insurance online. As rewards become more common, younger customer may come to expect that rewards will be built into all policies. Intuitive, simple digital experiences, as well as appealing rewards will become the main differentiators insurance companies can advertise in order to appeal to the younger demographic. 

 

3. Technological improvements mean enhanced personalization:

 

The insurance industry can leverage the technologies and developments of fast-moving InsureTech startups. Technologies such as improved analytics, the Internet of Things, and AI all serve to enhance insurance offerings and disrupt the industry entirely. Insurance companies should look for non-traditional partners and welcome innovative, new ideas to compete in this rapidly evolving space.

 

4. Global demand for digital solutions in insurance:

 

According to a survey by Accenture, 75% of insurers across the world intend to pursue digital initiatives by partnering with startups. Consumer demand for digital offerings and more perks, like free wearables devices, is a global trend. 

 

This is an exciting time to be working in insurance and InsureTech. These two industries are taking an age-old trusted product and elevating it with new, innovative technologies and ideas to appeal to a new mass market. 

 


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