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Insurtech changing insurance, but 8 out of 10 traditional businesses are afraid of losing positions in the market

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2018 was the year of development insurthe, despite the fact that passed this process with no high-profile events, fanfare and red carpets. Simple large-scale development and the onset of that step by step turns the insurance market, and even if they wanted to ignore it can not any one player.

A recently published Swiss Re Sigma study provide an important signal to investors: technological development will help companies dealing with property insurance and accidents, get 10% return on equity (ROE). Essentially, this means that insurtec promptly became a full-fledged market mechanism and an attractive investment. But this is only the beginning for 2015-2017 many players in the financial and insurance market predicted that 2018 will be the runway for insertech. Well, expectations come true. What’s next?

The question is rhetorical, because the assumptions are already in place. The results 2017-2018 Business Insider Intelligence published a report about the expectations of the market. According to analysts, the current year demonstrates the fundamental shifts in areas such as creating policies, underwriting and claims management.

Funding of projects is increased, thereby enabling them to scale while large players of the insurance market gradually rolling out its own design of a “sandbox” and implement in work. The focus remains distribution — in this area the most significant changes, and the trend is not receding. According to the report, insertech-projects are still characterized by the fact that creating in the market an entirely new business model, based on modern technologies. Automation, big date & Analytics, connected devices, machine learning (machine learning) — all this has already been successfully implemented as a comprehensive strategy for the provision of services to the consumer.

Business Insider Intelligence is quite categorical in the conclusions: the so-called legacy players, ie old market players are under a true threat. Those will survive who moves so fast that it is not behind the train of technological progress, which gained a high tempo. So high that analysts have already formed such a thing as Insurtech 2.0 and predicting its early onset.

Rapid technological breakthrough in the industry is quite understandable: more than 70% of the US audience aged 18 to 30 years is not confidence in traditional banking, insurance, financial institutions and prefer to use the services of the new generation. At the same time, 80% of traditional companies are seeing technology startups competing risk for their business. USA in this plan serves as a vector for the global trend, and it becomes clear which way the wind blows: an avalanche on the global market are the new people. People who choose technology. The market catches the signals to the avalanche of needs we must prepare. After actively developing pineham and insurecom already demanded a new “tehi”. But it will be a separate global survey of trends, which is not far off.

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