Insurance technologies can be distinguished in a separate direction, insurtech. It is possible to get any insurance policy online in just a few minutes today. All you need is a laptop or smartphone and Internet access.
These technologies are simple and affordable and allow users to:
- insure themselves and their loved ones against various risks for a good amount;
- buy insurance policies online without visiting the insurance company office;
- save time, as the policy is issued in a few clicks;
- receive new and relevant insurance products quickly taking into account current needs;
- buy cheaper insurance policies, as the online format implies cost savings for insurance companies.
Insurtech is rapidly developing around the world. According to Infoholic Research LLP, the total revenue of insurtech companies has amounted to $533 million in the world in 2018, and by 2023 it will double and amount to $1.12 billion.
Insurtech startups successfully develop IT solutions in such areas as:
- Artificial intelligence and machine learning;
- Antifraud solutions to minimize insurance fraud;
Technologies for cyber risk evaluation and prevention;
- Video analytics and telematics;
- Platforms to optimize business processes.
The prospect of the industry is indicated by the inflow of investments in it. According to Deloitte, the total investments in insurtech projects from 1998 to 2018 amounted to about $12.5 billion. According to Willis Towers Watson, in just one 2019, insurtech companies and projects raised at least $4.36 billion.
The United States remains the leading market in attracting investments in technological projects in insurance with a share of little less than 50%, followed by the United Kingdom, about 10%. The fastest growing investment is in China, 10% of the market in 2019 alone.
The five largest Insurtech companies in the world are as follows:
ZhongAn is a Chinese company. The company's business model is based on the AI and Big Data use.
Acko General is an Indian startup. The company took off through creating an innovative insurance platform allowing customers to see and buy all insurance services in one place.
Oscar Health is an American company operating in health insurance. It provides customers with free fitness trackers integrated with their own app.
Lemonade is an American company that claims to be the world's first open source insurance policy. It is based on the AI use and principles of behavioral economics.
Shift Technology is a French company. It is a B2B company for insurers dealing with client claims. The company offers software as a service (SaaS), uses AI and data analysis to detect insurance fraudsters.
What projects can be expected from insurtech in the future?
Most likely, technological insurance in Kazakhstan will develop and offer new products, improving scoring, using big data and artificial intelligence in the next five years. Perhaps, there will be whole technological ecosystems for car owners.
Technological insurance will develop, if only because it meets new urgent challenges very quickly. For example, technological and simple insurance against coronavirus has appeared on the market in record time. Insurtech allows respond to any other emerging trends and meet new customer needs almost instantly.
The insurance market in Kazakhstan has quickly become digital and harmoniously fits into our daily routine. It is hard to imagine what step will be next. The insurance companies are definitely at the stage of interesting developments and search for new breakthrough solutions. In the meantime, Kazakhstani users are happy to learn new offers from insurance companies.
Photos are from open sources.