Insurtech 101 with John Bean | 11:FS Explores

Summary

Insurtech, the convergence of insurance and technology, is revolutionizing the traditional insurance industry with innovative services and products. Driven by big data, AI, and IoT, insurtech companies like Lemonade are meeting evolving customer expectations for personalized and immediate insurance solutions. This industry is expected to grow to $119 billion by 2027, offering a more contextualized and embedded experience in everyday life, transforming the way insurance is perceived and purchased.

Takeaways

• 💡 Insurtech refers to companies using technology to disrupt the traditional insurance industry, similar to how fintech has impacted financial services.
• 🌐 The term 'insurtech' is relatively new, but the integration of insurance and technology has been evolving alongside advancements in big data, AI, and machine learning.
• 🏆 Insurtech aims to revolutionize an industry that has been slow to change due to high entry barriers, including strict regulations and significant capital requirements.
• 🛍️ Customer demands and expectations are driving changes in the insurance industry, influenced by trends in retail, banking, and telecommunications.
• 📈 The growth of insurtech is being fueled by new technologies and data sources, allowing for the creation of intelligent services and propositions.
• 🚗 There is a shift from product silos to a more contextual and holistic approach in insurance services, considering the entire insurance value chain.
• 🔍 Insurtech is primarily driven by technological advancements such as big data, AI, blockchain, and IoT, as well as a cultural shift in how customers are perceived and served.
• 🛒 The future of insurance is expected to be more embedded in everyday life, with products and services becoming more personalized and context-aware.
• 📊 The insurance industry is predicted to grow significantly, with insurtech valued at 119 billion US dollars by 2027, indicating a rapid and substantial market expansion.
• 🎙️ For organizations, it's crucial to adapt to new insurtech products and services to meet customer needs, while consumers should be aware of the diverse options available beyond traditional annual policies.
• 🌟 The insurtech industry is poised for significant innovation and growth, offering exciting opportunities for both businesses and consumers alike.

Q & A

What is the term used to describe companies that use technology to disrupt the insurance industry?

The term used is 'Insurtech', which is a blend of 'insurance' and 'technology'.

Why has the insurance industry been described as 'lethargic' and in need of disruption?

The insurance industry has been seen as lethargic due to its long-standing practices and high barriers to entry, including strict regulations and capital demands, which have made it resistant to change.

What technological advancements have been driving the growth of Insurtech and Fintech?

Technological advancements such as big data, artificial intelligence (AI), machine learning, and blockchain have been driving the growth of Insurtech and Fintech.

How are customer expectations and needs changing, and why is this impacting the insurance industry?

Customer expectations are changing due to experiences from other industries like retail and banking, where they expect more personalized and immediate services. This is driving the need for change within the insurance industry.

What is the role of telematics in the context of Insurtech?

Telematics uses sensors to gather real-time data, which can be used to create more personalized and intelligent insurance services and propositions.

What is the significance of the new data sources in creating intelligent insurance services?

New data sources, such as those from IoT and telematics, allow for the creation of intelligent services that can offer more contextual and personalized insurance solutions.

How is the insurance industry adapting to the changing customer expectations and technological advancements?

The industry is adapting by embracing Insurtech, which leverages new technologies to create more personalized and immediate insurance products and services.

What is the potential market value of the Insurtech industry by 2027?

The Insurtech industry is projected to be valued at 119 billion US dollars by 2027.

What is the cultural shift in the insurance industry that Insurtech is tapping into?

The cultural shift involves thinking of customers not in terms of specific product silos but in terms of their lifestyles and how insurance can play a role within that space.

How are insurance products expected to evolve in the future according to the script?

Insurance products are expected to become more personalized, contextualized, and integrated into everyday life, using the data gathered to offer richer experiences.

What are some examples of how insurance could become more embedded in everyday transactions?

Examples include insurance being immediate and automatic at the point of sale, such as when purchasing a car, watch, or even a PlayStation.