5 Insurtech Industry Trends of 2022

Many insurance companies have turned to technology for streamlining their operations and improving their ROI. The private life and non-life insurance segments are forecasted to grow at 16% and 17% respectively in FY22 with, new retail term premiums expected to double in 5 years. Standalone health insurers are expected to grow by over 25% in FY22 due to the increased focus on healthcare. Market leaders and new entrants are looking for new avenues to enhance their customer footprints.

With this rapid digital transformation, the entire ecosystem has opted to digitise its business functionalities to furnish a better customer experience and customer retention rate. Here are the top 5 emerging trends that are the catalysts to this digital revolution in the insurtech industry.
1. Insurance On the GO

The rapid progress in the insurtech industry can be witnessed by the new age, Embedded Insurance services. Embedded Insurance is a combination of insurance and transaction of an item or a service, at the time of purchase. It very well could be a platform where it is complimentary like a guarantee/warranty or a delicate group where the client needs to make little addition but can also choose not to.   Embedded insurance contextualised the item builds that made insurance reasonable and simple, through a straightforward issuance process. Thus, it widened the scope of the insurtech industry in the nation, where it had stayed stale for over twenty years.
2. Automated Underwriting

The insurance business is moving from legacy methods of endorsing risks that usually were one size fits all. Today the industry emphasises more on a personalised risk evaluation. This change is occurring at the convergence of Artificial Intelligence (AI), Internet of Things (IoT) devices and Machine Learning (ML). Indeed, these have been trending jargon in the insurance business for the past decade. Yet insurtechs have demonstrated discrete use cases in reality when they have been only hypotheses in the terraces of R&D divisions in the insurance companies.

3. Hyper Personalisation with the tech

Insurtechs have now started to consolidate different products like health insurance, life insurance, etc., by surveying customised risks within view of socio-economics, geologies and propensities. 

A report by Accenture uncovered that 75% of clients are bound to buy from an association offering customised services in view of their preferences, taste and needs. Thus, it has become essential for the insurance business to consolidate the idea of personalisation in its contributions. Insurers need to plan their policies such that it caters to the requirements of individual buyers’ necessities, and the customer should be liable for premiums only for the risks they are insuring.

Individuals need the best inclusion at a minimal cost. Subsequently, the recent pattern is to consolidate trendy innovations, for example, AI and Big Data collection and break down data to categorise clients based on the risks and proposition modified premium plans.

4. Microservice framework for applications

The Millenials in our nation contribute up to 50% of the total workforce. This generation denies the traditionality of the insurance market. The inflexible and rigid architecture of the legacy insurance companies fails to keep up with the increasing demands of the customers. 

Thus, the insurance industry necessitates updating its contributions and plan of action to help this transformation. One method for doing this is moving to an API based microservices platform. Insurance applications become capable of seamless up-gradation with the progressive market trends, without any extra expense when built on such microservices platforms.

This elevates the adaptability of insurers to back up millennials enabling them to choose and purchase insurance. Microservices likewise permit space for imagination with an easy to understand interface that works with consistent conveyance of insurance items on any gadget.

5. Automation of claims and customer services

Generally, Indian insurance organisations have a terrible reputation for claims handling or client services. This happens because of slow authoritative cycles, including claims regulations due to proceeded reliance on manual age-old operative techniques.

Insurtechs generally accompany a computerised DNA that is unavoidable across all tasks from day 1, including cases and overhauling. Digitised claims with a 24-hour circle back are currently an assumption from each customer. Indeed, even client care is computerised through self-administration entries and bots for unremarkable errands like strategy revision, downloads, claims accommodation, restorations, and so on.

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