Close
  • Home
  • Applications
      • Asset Management
      • Business Intelligence
      • CEM
      • Cognitive
      • Compliance
      • CRM
      • Data Center
      • E-Invoicing/E-Billing
      • Enterprise Communication
      • Enterprise Mobility
      • ERP
      • Facility Management
      • GDPR
      • Human Resource
      • Information Security
      • ITSM
      • Managed IT Services
      • MarTech
      • Payment and Card
      • Procurement
      • RegTech
      • Risk Management
      • RPA
      • Software Testing
      • Unified Communication
  • Verticals
      • Automotive
      • Casino Tech
      • Contact Center
      • Enterprise Startups
      • Field Service
      • FinTech
      • Healthcare
      • Legal Tech
      • PropTech
      • Telecom
      • Travel and Hospitality
  • Technologies
      • Agile
      • Artificial Intelligence
      • Augmented & Virtual Reality
      • Big Data
      • Blockchain
      • Cloud
      • Data Analytics
      • DevOps
      • Drone
      • HPC
      • IoT
      • Robotics
      • Smart City
      • Storage
  • Company Eco System
      • Adobe
      • Dassault Systemes
      • HPE
      • IBM
      • Microsoft
      • Oracle
      • Salesforce
      • SAP
  • News
  • conferences
  • Newsletter
  • Specials

  • Menu
      • Big Data
      • Blockchain
      • Casino Tech
      • CEM
      • Cloud
      • CRM
      • DevOps
      • Drone
      • Facility Management
      • GDPR
      • IoT
      • Legal Tech
      • Oracle
      • PropTech
      • RPA
  • Blockchain
  • Cloud
  • CRM
  • Drone
  • Facility Management
  • IoT
  • Oracle
Specials
  • Specials

  • Big Data
  • Blockchain
  • Casino Tech
  • CEM
  • Cloud
  • CRM
  • DevOps
  • Drone
  • Facility Management
  • GDPR
  • IoT
  • Legal Tech
  • Oracle
  • PropTech
  • RPA
×
#

CIO Applications Europe Weekly Brief

Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from CIO Applications Europe

Subscribe

loading
  • Home
  • FinTech
Editor's Pick(1 - 4 of 8)
left
Networking Beyond Technology

Mohammad Usman, Manager Of Infrastructure, Connex Credit Union

The Tango of AI and Big Data

Monica Khurana, CTO / CIO in Financial Services, MNM Partners - AI Consulting Services

Voyage towards Greater Experience in Banking

Gregory Schwartz, CIO, Scottrade Financial Services

Cyber Threats: A Growing Risk To The Capital Markets

Daniel Friel, CIO, International Securities Exchange Holdings, Inc. (ISE Holdings)

Opportunities and Uncertainties - The Future of Fintech

Christana Yang, Venture Investor, Sand Hill Angels

Share The Clock, Not Just The Road

Jerome Tinianow, Chief Sustainability Officer, City and County Of Denver

Zero Trust And The Multi-Factor Authentication Conundrum

Joseph Carson, Chief Security Scientist & Advisory CISO, Thycotic

Fintech at the Edge of Tomorrow

Lex Sokolin, Futurist And Fintech Entrepreneur, Autonomous Research

right

THANK YOU FOR SUBSCRIBING

Insurtech as a subsector of Fintech

By Alexandra Foster, Director Insurance, Wealth Management & Financial Services, BT

Tweet
content-image

Alexandra Foster, Director Insurance, Wealth Management & Financial Services, BT

The concept of fintech is hardly new. In 2018, the amount invested into fintech ventures globally ballooned to US$55.3 billion, demonstrating that financial technology is central in enabling innovation within financial services. Despite this monumental progress, fewer people know about the significant sub-branch of fintech known as ‘insurance technology’ or ‘insurtech’ in detail, even though global insurtech investment surpassed $3bn in 2018.

In short, insurtech refers to the use of technological innovation that is designed to streamline and modernise the insurance industry. And, just as fintech is disrupting traditional banking models, insurtech is on a path to reinvent insurance by re-imagining the ways in which insurers analyse risk and engage with their customers.

However, modernising this industry through technology poses its own unique set of challenges, largely because insurance consumers generally prefer to avoid their providers. After all, once somebody has purchased travel insurance, they’re unlikely to want to speak to their insurer again unless they need to make a claim.

With this challenge in mind, CIOs need to ensure they manage innovation through the most dynamic technologies in order to develop positive, cost-effective consumer relationships that ensure they are digital by design. Insurtech could affect substantial changes for both the insurers and the insured, but to achieve this, it is essential that efforts are focussed on the right technologies. To this end, we have outlined seven key insurtech trends to consider for those planning a start-up investment or innovating within an established insurer:

- AI: AI is now being widely deployed across insurance for chatbots and other forms of online communications, as well as within claims analysis. Chatbots will grow increasingly significant as insurers realise the benefits they provide. For example, these bots can top and tail their customer interactions with a human agent to speed up the processing of claims, collecting essential information and then closing a call.

Insurtech refers to the use of technological innovation that is designed to streamline and modernise the insurance industry

The best of these will quickly link a customer to an advisor with skills that are most likely to meet a customer’s needs, thus freeing agents from managing routine queries so that they can focus on for more complex or valuable activities.

- Big Data: The convergence of AI and Big Data will be key, as AI will enable insurance firms to add structure to the huge volumes of data available. Used responsibly, Big Data enables firms to develop significant insights into their insurance markets, allowing them to generate new product sales, near-time actuarial analysis and methods of investigating risks.

- IoT and 5G: Similarly, the volumes of data relevant to insurance policies and claims will expand through the proliferation of IoT-connected devices. The launch of BT’s 5G network will act as the framework that can underpin the expansion of IoT by increasing connectivity and solving the main challenges previously faced by IoT; namely speed, latency, and costs. For insurance, a network of hyper-connectivity that provides information around human behaviours, the performance of connected devices and environmental risks is potentially a huge development.

- DLT: There is demand for DLT to form an essential pillar within insurance’s infrastructure by creating an authoritative record of transactions. While insurance has typically been slower in adopting DLT-based solutions when compared to other parts of financial services, one of the defining moments of the last 12 months was the delivery of the first blockchain transaction by Willis Towers Watson and its partners. Expect to see more collaborative efforts, further PoCs and even some DLT-based products that will be finalised in the next year.

- APIs: After decades of using legacy technology, firms are also looking to create synthetic middle layers where the middle layers create APIs. This synthetic layer of APIs will allow firms to simulate a modern world out of old legacy ones by opening access to the back-end systems while simultaneously embracing new technology because they create a platform to integrate insurtechs, new partners, and new technology engagement points. In doing so, firms can extract data, provide real time analysis to customers and keep up with ever changing regulatory demands. Firms can then silo off or transform the legacy systems and speed up the process of digitisation.

- Cloud: Insurers are now properly analysing their data centre estates to better understand the possibilities presented by cloud technology. Through increasing cloud usage, we will see more economies of scale. Momentum has also been building from a regulatory perspective: firms now need to adapt to updated guidance from the FCA on cloud usage and the impact of related reputational risk.

Increasing customer engagement in insurance will require a multi-layered strategy that considers a combination of cloud, Big Data and AI, along with APIs and their ability to enable digital change. In the wider industry, banks and fintechs have seen this kind of change already. However, while fintech was developed to cause disruption, insurtechs are evolving to increase collaboration between agile start-ups and traditional companies. To maximise the potential of these technologies and a new, customer-facing insurance industry, we are likely to see ever more collaboration within insurance in future.

See Also:

Top FINTECH Companies

Top FINTECH Consulting Companies

tag

Big Data

IoT

Insurtech

Read Also

Opportunities and Uncertainties - The Future of Fintech

Opportunities and Uncertainties - The Future of Fintech

Christana Yang, Venture Investor, Sand Hill Angels
Share The Clock, Not Just The Road

Share The Clock, Not Just The Road

Jerome Tinianow, Chief Sustainability Officer, City and County Of Denver
Zero Trust And The Multi-Factor Authentication Conundrum

Zero Trust And The Multi-Factor Authentication Conundrum

Joseph Carson, Chief Security Scientist & Advisory CISO, Thycotic
Fintech at the Edge of Tomorrow

Fintech at the Edge of Tomorrow

Lex Sokolin, Futurist And Fintech Entrepreneur, Autonomous Research

Weekly Brief

loading
cxoinsights
Top 10 FinTech Solution Companies - 2019
Top 10 FinTech Consulting/Services Companies - 2019
ON THE DECK

FinTech 2019

Top Vendors

FinTech 2018

Top Vendors

Previous Next

Top Trending News

  • How Europe Plans to Minimize 5G-Induced Risks
    How Europe Plans to Minimize...
  • Top 3 Tech Innovations Striding in the European HR Industry
    Top 3 Tech Innovations Striding in...
  • 4 Latest Enterprise Mobility Trends to Follow
    4 Latest Enterprise Mobility Trends...
  • Is 5G a Game-Changer for the European Healthcare Industry?
    Is 5G a Game-Changer for the European...
View More ›

Vendors

  • Collenda: Innovation in Credit Management

    Christian U. Haas, CEO, Collenda

    Syberry: Crafting Customised Software for All

    Timour Procopovich, Executive Vice President, Syberry

    Crosskey: Pioneering an Open Banking Strategy

    Thomas Lundberg, CEO, Crosskey

    BlueSnap: A Unified Solution to Process Global Payments

    Ralph Dangelmaier, CEO, BlueSnap

    Ixaris: Global Platform for Payment Optimization

    Aran Brown, CEO, Ixaris

    IDnow: Secured Identity Verification Platform

    Armin Bauer, Co-Founder & CTO, IDnow

Copyright © 2019 CIOApplicationsEurope. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Use and Privacy Policy |  Sitemap |  Subscribe |  About Us

follow on linkedin follow on twitter follow on rss
This content is copyright protected

However, if you would like to share the information in this article, you may use the link below:

https://fintech.cioapplicationseurope.com/cxoinsights/insurtech-as-a-subsector-of-fintech-nid-1134.html?utm_source=google&utm_campaign=cioapplicationseurope_topslider