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April 8, 2021

Industry Challenge

Lack of digitization is driving customers to seek new insurance options. Welcome to the post-2020 world—how ready are you?

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What they’re saying: A PwC survey found that 41% of respondents said they were likely to switch insurance providers due to a lack of digital capabilities and that 53% said they were likely to use digital channels to engage with their insurers within the next 90 days.

What it means: Expect this trend to continue, and if you are ready to compete, then this is your moment. The most important capabilities in this new world are:

  • The ability to share data across the supply chain
  • The ability to customize the customer experience, especially using data
  • The ability to sell the right set of products in a targeted way

Read: Ways Insurtech Can Save the Insurance Industry from Itself

Tech Watch

AI tech is in its early days, but it will impact insurance sooner than you think

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What they’re saying: With only nine months under its belt, OpenAI is already powering over 300 applications and being used by tens of thousands of developers around the globe. It is currently generating an average of 4.5 billion words per day and its usage is growing.

Questions to think about: What ways will AI impact Insurance? What if AI could generate an entire insurance company?

Read: GPT-3 Powers the Next Generation of Apps

Trend Watch

Decentralized and unregulated “insurance” is emerging in cryptocurrency.

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What they’re saying: The decentralized finance (DeFi) sector is booming, but it’s risky. Now software developers are launching products that claim to reduce the risks by selling something akin to insurance coverage. Here’s the catch: They’re also DeFi apps.

What’s next: Expect to see a whole lot more of this. Right now, they’re selling coverages targeted at smart contracts, but it’s inevitable that this productization will spread into more traditional insurance products. This means securitization will be more prevalent, and risk-trading will be available to more investors. 

Read: Insurers come to crypto’s Wild West promising big returns

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Know how tech is impacting insurance.

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