New report says insurtech is “one of the largest innovation ecosystems” globally

Policy management is emerging as a major focus for insurtech developments

New report says insurtech is “one of the largest innovation ecosystems” globally

Technology

By Allie Sanchez

New research has revealed that the insurance industry is catching up in the use of technology to enhance products and services as it starts to overcome obstacles to adoption.

A PR Newswire report on the study “Insurtech and Customer Services: Lessons for Incumbents” said that the insurance space had emerged to become “one of the largest innovation ecosystems globally in 2016.”

“It has taken a while for…insurance firms to fully embrace fintech innovation, due in part to the amount of legacy systems in place, the heavy dependence on historical data, and the low risk-appetite for new insurance-related products at most traditional firms,” the wire report stated.

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As the industry overcomes adoption barriers, it is using apps and devices that monitor consumer behaviour and purchase patterns, which are mainly driven by the Internet of Things (IoT). These tools enable insurers to keep up with consumers who increasingly prefer the sharing economy.

Furthermore, the report stressed that “policy management is a key theme” observed among the majority of insurtech developments where consumers are allowed to personally manage and increase control over their insurance transactions.

Peer to peer (P2P) platforms are also gaining momentum as liabilities and risks are managed more by the policyholder, which is a move away from traditional business models where the insurer performed such functions.


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