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September 9, 2021

Insurtech and Insurance

Insurtechs are changing how people think about insurance

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What: Insurance was once seen as boring, stagnant, and merely a financial tool, but insurtechs are breathing new life into the idea of value-adds, according to Forbes. With the digitization of insurance and offerings like AI-powered employee wellness analysis, the way people see insurance is shifting.

Why it matters: One key area of growth is embedded insurance, an opportunity of which consumers are overall in favor. Building connections that enable insurance sales and servicing within other products—property insurance as part of the loan process, for example—is a growing trend that we’re watching closely. 

Read: How Insurtech Is Becoming The Next Digital Ecosystem

Artificial Intelligence

AI’s growing footprint highlights the risk of AI bias

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What: Artificial intelligence(AI) is growing in prominence, and with it concerns about hidden discrimination and bias within the algorithms. Within the financial sector, for example, AI is being used for loan decisions that could amplify patterns of historical discrimination based on flawed data sets.

Why it matters: Having quality data is now more important than ever, and having the ability to expand and adapt data inputs for rating systems gives insurers the ability to quickly pivot and avoid the negative impact of AI bais. 

Read: As banks push AI, worry about worsening inequality follows

Behavioral Economics

Insurance innovations that aim to help you feel safe

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What: Insurance companies and insurtechs are strengthening their customer focus in response to Covid, offering more digital connections for policyholders, innovative products (such as microinsurance) for underserved populations, and the inclusion of telemedicine options in healthcare products. 

Why it matters: The traditional channels of insurance sales have been transformed by the pandemic, with the need for digitally-enabled sales at an all-time high. Agents and carriers with good digital tools have already grown, and any insurer without APIs or digital intake faces a huge competitive challenge. 

Read: How insurtechs are evolving to feel help you safe after the pandemic

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