Blending of Insurance with Technology: Trends to Know

To experience fear is just the nature of things, and the entailing striving for safety is #2 in Maslow’s hierarchy of needs for a reason. That’s why the basic mission of the insurance business is to free the person of anxiety, chaos, or specific concern. The scope of insurance help is extremely wide these days, and we’ve prepared the UK and US examples from the different spheres in our top companies list below. Why these countries exactly? Because they’re at the top of embracing the modern technologies and adding them into the service “filling.” And at the juncture of these two pillars, we’ve got insurtech, which deeply relies on technology to prepare customers for the unexpected.

The pandemic also increased the popularity of insurtech as users naturally started to seek safety in the issues they were previously less bothered with. While property and casualty insurance was in the lead in 2020, the weight of data security, income protection, medical compensation, accident expenses, vehicles protection, and other insurance types raised too. In London alone, the insurtech companies almost tripled users’ funding bids from $231m to $718m in the first half of 2021, compared to the results of 2020. And while the UK and the US remain the leaders in the industry, even the developing countries show some promise in the insurtech direction. The reason for that is evident: where traditional insurance fails to provide users with clear eligibility rules and simple coverage procedures, technically upgraded insurance companies accept the fight. Owing to the latest solutions in cloud computing, AI, virtual assistance, and data science, these game-changers disrupt the reality of our lives and give high-level UX to all concerned.

Are you ready to get acquainted with the best reality-altering, tech-savvy insurance players of 2021? Go on with reading our article but be ready to expand your world too!

Key Insurtech Trends to Mind and Follow

Even though digitalization in the insurtech realm doesn’t run smoothly, the blending of technologies and the insurance business is the cornerstone of the wider audience’s attraction and further retention. How come? Let’s specify its ways in more detail!

1. Big data analytics. Though the tool isn’t new, today it allows gathering a much wider scope of data, including behavioral (purchase and credit history) metrics, and apply this knowledge to the personalization of insurance products.
2. Smart personalization. It starts from the close examination of the insured and their activity patterns and ends up with the creation of the insurance product that perfectly meets the user’s lifestyle and demands. Usually, it goes with automation where AI technologies and analytical models aren’t the last.
3. Artificial Intelligence. This is a lucrative trend that has stirred insurtech evolution from 2019 and is expected to grow further. Namely, according to GlobalData prognosis of 2021, AI-based insurance platforms will generate up to $3.4bn till the end of 2024.
4. Internet of Things. Due to the connectivity of devices to the internet, data collection and sharing have become easier. That’s the essence of IoT, which in the case of insurance, helps in-build the new functions and transform the insurance service into a convenient digital platform that can be controlled via the phone or other device.
5. Cybersecurity. As a consequence of users’ massive shift to digital platforms, the issues of data security and anti-fraud protection have also come out. In fact, the insurtech cyber losses are shooting up like mushrooms each year: 2019’s threshold of $1.8bn was outperformed twice as hard in 2020 and then doubled again in 2021. This signifies that cyber insurance is currently in its infancy because of underinvestment, COVID-19 economic aftermath, and the lack of the sector’s transparency (absent historical loss data for analysis).
6. Blockchain. In the pursuit of security, blockchain cryptography appears a good method of safeguarding transactions and other sensitive data. Specifically, encryption flourishes when it comes to documentation insufficiency, probability of human error, or cybercrime damage. In the insurance field, blockchain is believed to speed up the data handling processes by reducing the time spent on the paper forms filling. Meanwhile, the environmental and economic sides of blockchain usage are still under question.
7. Virtual assistance. What else comes in handy to automate the insurance service and grow its target reach is virtual aid. Online customer support isn’t the only communication means there. In 2021, the range of virtual assistants has significantly broadened! Chat-bots, robot assistants, and even virtual agencies bridge customers and product acquisition.
8. Omnichannel communication. 2021 dictates its own rules, and supporting service, especially sales, in multiple channels is a must. Joining your efforts in a simultaneous omnichannel stream, including apps, social media, emails, chatbots, websites, etc., is valid for insurtech too — this mindful automation can cut the cost of a claims journey to 30%.
9. Cloud computing. Data storage in the cloud is now typical of the insurance businesses as well. Thanks to this power, insurers can quicken the service delivery pace and affect the customers’ satisfaction rate positively. If you’re interested in this matter, come and read our other article!
10. Gamification. It’s a rarer and harder-to-implement strategy that, anyway, becomes more recognizable in 2021. Its gist lays in engaging the customer in the game-like digital experience for winning bonuses, discounts, and other benefits. One vivid example of gamification in insurance is Hong Kong’s _Infinity App _by MetLife that invites users to share what’s important to them today and uniting them with a sense of community.

All these trends apply to insurtech today and will stay still in the foreseeable future, so we hope that now you’ve got the food for thought!

12 Top Insurtech Companies: 2021’s List

Now, when your vision of what lays behind the insurtech firms’ success is crystal clear, it’s time to look at the guys who rock in the industry!

1. Zego

This London-based start-up is mainly focused on insuring different vehicles (cars, vans, scooters, etc.) for work and private usage purposes. Selling its first policy in Aug 2016, the insurtech firm has confidently broadened its scope of influence from the UK to Spain, Belgium, and France. Now the company’s funding has reached $201.7m, while the launching of new products and further expansion throughout Europe are continuing. What’s under its hood? First comes the convenience of service that is delivered through both the website and the app. Second is the flexibility of coverage to vehicles of any size and type. Next is probably the social media presence that adds much to the brand recognition. Isn’t it an omnichannel strategy at work?

2. Gryphon Group Holdings

It’s another big UK insurance provider that is specialized in life and critical illness protection. Being part of the Guardian brand, it aims at helping the families stay afloat and after the diagnosis of a serious disease, losing a partner, or having a child ill. The fast payout procedure is paramount in such cases, and that’s what Gryphon Group Holdings can be truly proud of. The digitalization of this insurtech business is sustained by cloud-based technologies, which also reduces time on bureaucratic underwriting and enhances the service quality.

3. Bought by Many

That’s the UK’s best pet insurance provider of 2020 that has gained a reputation as the online form-free claims pioneer. Relying on social media and anonymized search data examination, this insurer has succeeded in bringing the exquisite, personalized product. Specifically, simple policy wording, pleasant and easy-to-go site interface, reasonable prices, and the absence of hidden fees work well for the customer’s acclaim.

4. Tractable

This is the famous UK company that runs AI technology to cope with damage from accidents (car insurance) or natural disasters (home insurance) and provide the best and well-timed recovery to its victims. The ML algorithms and software infrastructure turn Tractable into the speedy, visual problem-solver who can quickly estimate the repair costs in less than 30 seconds. Can you believe it?

5. Cytora

Being an expert in digital risk processing, Cytora is targeted at commercial insurers that are interested in target and price risk assessment. Founded in 2014, as the brainchild of the University of Cambridge, this project has passed a long way to the remote-first company stage. Now Cytora partners with the key insurance players, such as XL Catlin, Starr, and QBE. AI technology comes in force again! This time to fill in the gap between the client’s underwriting strategy and its execution.

6. Cuvva

It’s a UK hourly car insurer that currently serves more than 500,000 drivers. By applying the customer-first approach, Cuvva has easily gathered the community over its service. No surprise, considering the fact that the average support response time doesn’t exceed 1 min, and the users can get the car coverage in 3 clicks through the app. All you need is to take a photo of the damaged vehicle, enter your registration key, provide the desired car’s value estimation, and choose the coverage timing. Moreover, Curva’s anti-fraud protection and thorough check of drivers’ licenses are clear indicators of cybersecurity care.

7. Trunomi

This is the global data security insurtech that works on businesses’ data rights management in accordance with the required regulatory framework. Specifically, the company helps the clients to legalize the receipt of the customer’s consent to access their personal data. Its multiple awards signify the company’s tech advancement, which includes a blockchain identity system, professional data sharing, payment validation methods, API integration, and cryptographic standards.

8. Canopy

This company embodies the well-thought property ecosystem for agents, renters, and landlords. Its competitive advantage lays in cutting the household and tenant screening costs through the DepositFree insurance policy. What’s more, the digitalized format permits avoiding the redundant rent-related paperwork and automating all the processes on the go via the app. Virtual support availability is another strong facet of the business that simplifies the customer’s movement to homeownership.

9. Teambrella

This is the US blockchain-based company that aspires to revolutionize the traditional insurance sphere with the P2P risks sharing and management control to all insurance policies, claims, and refunds. Making the whole chain of processes transparent and fair, this insurtech provider promotes the absence of conflicts of interest within the community. The areas of its expertise are collision insurance and pet insurance, but their range is going to expand soon. Being built on Bitcoin, Teambrella encourages peers’ reimbursement from the collective wallet after the common discussion and voting.

10. Cocoon

It’s an AI-centered all-in-one home security insurer that leverages infrasound motion detection to ensure the safety of your home. The mobile app serves as the remote control panel that allows the user to know whether the home is currently secure from any kind of intrusion and have a look at what’s happening there. Your data will be safeguarded with the help of advanced cloud technologies, while you’ll get full access to the live videos through your smartphone.

11. Roost

This is another tech-disruptive smart home property insurance player that goes on with the US market conquering. Presently, Roost is an indispensable, reliable coverage tool for property managers and tenants. Its policies are available in all 50 states, and 24/7 alert monitoring will make sure your property items are protected no matter where you are. The coverage service also spreads to the cases of theft, water damage, house fire, or earthquake. Roost insurance guarantees coverage from $10k-$75k and easily adds your roommates to the policy in case you need it, so flexible customization is evident here.

12. Steppie (former WeSavvy)

Steppie is the new brand name for healthy lifestyle insurance. This digital platform is the perfect mixture of big data and IoT, which works for protecting the US and EU customers’ healthy behaviors, such as running, walking, or bicycling. Throughout its development, from 2015 till now, Steppie has transformed into the prevention-based insurance model that enables profound data analytics and risk management innovations to personalize the customer experience.

So, what’s the bottom line here?

Everyone is lured to a better quality of service at a moderate price, right? And technologies are the weapon to make it possible, and insurance is no exception. Which insurtech trend are you amazed by the most? Or do you need the tech solution consulting on the matter? Contact Dashdevs, and we’ll make your product shine bright like a diamond!