A new report from Juniper Research predicts the number of home insurance policies utilizing Insurtech will exceed 86 million globally by 2022, up from an estimated 60 million in 2017. This growth will average 7.5% per annum, as the integration of smart home technologies and AI underwriting systems takes hold in the insurance market.
The research found that personal broking apps such as Brolly and Sherpa will be utilized by customers to manage their insurance coverage with minimum effort, streamlining the insurance process.
The new research, Insurtech: Market Readiness, Forecasts & Key Vendors 2017-2022, found that a common approach is to include smart home products within insurance policies. This approach aims to actively reduce incidents such as water damage using leak sensors to detect issues early, and hence lowering claims.
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Far East & China will have the greatest market share of home insurance policies issued utilizing Insurtech, reaching 27% by 2022, driven by new insurers such as Zhong An.
The research predicted that smart home technologies, combined with AI underwriting systems, will improve the speed and quality of policy delivery, saving customers an average of US$221 per policy by 2022.
Juniper believes that these insurers are seeking to harness Insurtech to improve their products and protect against disruptive forces in the market. The investments are currently being dominated by European insurers, demonstrating the leading role these vendors have in the global market.
Juniper anticipates this investment will focus on systems to speed up the claims process, increasing efficiency, saving insurers 4.9 million hours annually via AI claims handling by 2022.
Juniper Research is acknowledged as the leading analyst house in the digital commerce and Fintech sector, delivering pioneering research into payments, banking and financial services for more than a decade.