February • Future of Insurance - Insurtech

THE TRADITIONAL insurance sector is facing a shake-up from a new wave of “insurtech” companies, who use artificial intelligence and data to both work out the risk profile of potential customers more accurately, and make the product selection process less painful for them.

Research by PwC shows 74 per cent of insurers predict disruption of their business over the next five years, with 43 per cent having fintech at the heart of their corporate strategies. “The area in which start-ups are disrupting the market is in digitalisation, where companies are looking to improve the customer experience,” VC investor at Axa Strategic Ventures Florian Graillot tells me.

“There has been a move from the analogue world to the digital, with companies using natural language processing technologies that help address customer needs. If you look at the insurance market, customers are paying for something but they do not understand what they are paying for. Insurtech start-ups need to address this.”

via ezine.business-reporter.co.uk