Insurance technology is booming, and firms are standing to benefit from the premiums behind it. Premiums taken by firms using this new technology are set to double globally–from $187 billion today to more than $400 billion by 2023, according to Juniper Research Ltd., a U.K. market analysis company. The quick jump has regulators on their toes, grappling to meet the demand for the need. Insurance technology is poised to make up at least 10 percent of the global insurance market within five years, Juniper found; considering it hovers at four percent right now, that six percent rise will be nice for those firms investing in this technology. Insurance technology is not going anywhere anytime soon. The global insurance market has no choice but to make room for it. Investing in these kinds of startups is key–it’s going to continue growing from here. Here’s all you need to know about insurtech and how it’s impacting insurers everywhere.
Why Insurance Technology
Strategically investing in insurance technology is a logical move that “makes sense”, Juniper said in a statement accompanying their latest report. “These innovators can be leveraged to accelerate the insurers’ own transformation efforts,” the company said.
This type of start-up is the latest up and coming thing; by bringing in artificial intelligence into the field, change is inevitable. Introducing AI is a game changer for claims processing, likely to deliver major savings within the industry, according to Law360. The annual cost savings for property, health, life, and motor insurance is supposed to exceed $1.2 billion by 2023, Juniper predicted, amounting to a five-fold increase since this past year. Investing and acquiring insurtech startups right now works because the market is growing for it. While the rise of insurance technology was slow starting, things are looking up for the upcoming years.
Players In The Game
Major insurers like Aviva PLC and AXA SA are currently testing out the waters alongside lawyers and others with the possibilities offered by insurtech, according to Law360, with potential benefits including tailored policies and the ability to make swift changes to policies. Juniper has a “Readiness Index” and the top five major insurers on the list are (courtesy of Insurance Journal):
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The thing is, regulators are unsure how to supervise. The European Insurance and Occupational Pensions Authority is set to review this month how big data and insurance technology is watched, in a move to tighten legalities, according to Law360. Marsh Ltd. is helping law firms fight negligence lawsuits through an analytics data driven insurance policy while BLM LLP launched a new data analytics system in 2017 that helps lawyers predict their case outcomes in advance, Law360 found. But that’s just the tip of the iceberg. These are just some of the ways that insurtech is changing the insurance industry. Insurance technology is the next big thing, and it’s here to stay.
About Axis Insurance
At Axis Insurance Services, we aim to help our customers identify their exposures and protect themselves. Founded in 1999, we offer insurance programs to a wide variety of professionals and industries including attorneys, real estate, healthcare, architects, and more, and also have a wholesale division. We pride ourselves on offering flexible insurance coverage tailored specifically to each customer’s needs. To learn more about our solutions, contact us at (201) 847-9175 to speak with one of our professionals.