
Emerging Insurance Technology Trends
CIO Review APAC | Friday, May 28, 2021

With first-hand data, IoT will bolster other insurance technology, enhancing risk assessment accuracy, giving insureds more power to directly influence policy pricing, and insurers the ability to increase accuracy and revenues.
FREMONT, CA: Advanced insurance technology is an essential component of the Property & Casualty (P&C) industry for both carriers and insureds. In 2021, insurance technology is expected to advance much more. The speed of change in the P&C insurance industry is being driven by digital insurance offerings and an established omnichannel approach to customer service. Furthermore, insurance firms of all sizes are looking for evergreen solutions to help them remain ahead of the competition—evergreen solutions include a technology that can scale and update with evolving demands and capabilities.
Insurers looking for a competitive advantage should consider adopting emerging insurance technology trends mentioned below.
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Internet of Things (IoT)
The majority of consumers are willing to share more personal information in exchange for lower insurance policies, and the Internet of Things (IoT) will automate much of this data sharing. Insurers may use data from IoT devices like smart home components, car sensors, and wearable technology to help assess prices, reduce risk, and even prevent losses from occurring in the first place.
P&C insurers cannot afford to wait to take advantage of IoT capabilities, as forecasts predict a 42.76 billion dollar global IoT insurance market by 2022. With first-hand data, IoT will bolster other insurance technology, enhancing risk assessment accuracy, giving insureds more power to directly influence policy pricing, and insurers the ability to increase accuracy and revenues.
Insurance Technology (InsurTech)
Insurtech, or more precisely, insurTech companies, use cutting-edge insurance technology to lower costs for consumers and insurers, increase operating performance, and enhance the overall consumer experience. Although insurTech may sound similar to digital insurance offerings that have been around for a while, it brings those capabilities to the next level.
Insurtech investment totaled 4.9 billion dollars in 2018 since insurTech is transforming the way real-time and predictive data can be collected and used. That is to facilitate the production of insurance products that are sensitive to emerging risk, allow for tailored coverage and pricing strategies to respond to macro-risks like climate change or cyber risk, and drive potential resilience.
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