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Insurtech innovations set to reshape insurance industry: Waterstreet Study

25th August 2023 - Author: Akankshita Mukhopadhyay

In a study involving hundreds of prominent insurance leaders, Waterstreet has revealed a compelling vision of the future of insurance, shedding light on the transformative impact of insurtech innovations, artificial intelligence (AI), machine learning, and blockchain on the industry landscape.

Survey participants overwhelmingly foresee insurtech startups as the driving force behind industry growth, with a significant 59% backing this belief. This underscores the escalating influence of technology-driven initiatives in reshaping the insurance sector.

The study highlights the consensus among 47% of respondents who consider AI, machine learning, and blockchain as pivotal game-changers in the Property and Casualty (P&C) insurance domain. These technologies are anticipated to revolutionise various aspects of the industry, from underwriting to claims processing.

Effective risk mitigation emerges as a key strategy for profitability, with 41% of industry leaders identifying it as a primary growth driver. Insurers are focusing on predictive data analysis tools, such as safe driving apps and flood detection sensors, to encourage proactive risk management.

In the rapidly evolving tech landscape, robust customer support gains prominence as a critical factor in easing transitions to new systems and products. The study reveals that 45% of respondents prioritise comprehensive customer support during phases of technological transition.

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The study casts light on the evolving landscape of Policy Administration Systems (PAS). Previously, powerful insurers relied on in-house PAS, but the study finds a near tie between those opting for internal PAS updates (43%) and those seeking external expertise (40%) to keep pace with changing industry dynamics.

The integration of external data emerges as a cornerstone for comprehensive risk assessment, particularly with geographic data providing insights beyond traditional risk evaluation methods. Notably, an overwhelming 80% of tech leaders emphasise the significance of digital payment integrations in the coming years.

Business Intelligence (BI) emerges as a linchpin of the industry’s evolution, aiding in harnessing the potential of data. With 63% of tech executives valuing mobile app compatibility for real-time policy access, the industry is moving towards enhanced usability and user-friendly interfaces.

Waterstreet’s study paints a vivid picture of the insurance sector’s rapid evolution. With insurtech innovations, AI, and data integration at the forefront, policyholders can anticipate improved communication, streamlined claims processes, and a heightened focus on customer satisfaction.

As the industry continues to embrace technology-driven advancements, it remains poised to deliver unparalleled precision, efficiency, and customer-centric services in the years to come.

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