Future of InsurTech
According to Deloitte, by 2024, an estimated 33 percent of the premium insurance volume will come from brand new propositions. InsurTech start-ups are leading the market to faster and more collaborative ways of doing business for many insurance companies, and all with a focus on customized rates.
If you follow me on Twitter @shervin, you know that I am always watching the trends and this new disruption in insurance technology is bringing more and more attention to the industry. Certainly in the housing market and auto industry we have seen a rapid shift to meet demand while also creating some interesting trends which will play out over the coming years.
From changing customer behavior and climate catastrophes to digital transformation and the integration of new technology, some experts are pointing to digital as the primary driver. Forbes magazine recently reported that the move to all-digital transactions means insurers can collect data on customers that will help them to make targeted quotes based on a number of factors including behavioral data.
In the same way that credit history and scores gave lenders a more accurate view of risk assessments, today’s insurers can also collect personal data and base policy rates on that data. Digital also assists insurance claims processing and real-time policy sales.
These sales are becoming so customized and personalized that coverage can become as unique as the customer, or at least the customer’s history.
You can imagine along with me an insurance policy that not only knows how long you’ve been at your career and how well you pay your bills, but also knows how fast you drive, what you eat and drink, what you do on the weekend, where you spend your vacation, and who you spend time with in person and on social media.
In the future, the insurance rate you get will be your own.