31 July 2023
Revolutionising the Industry: The growth of InsurTech
According to Insurance Business Magazine, the industry is ripe for disruption, and the surge in InsurTech growth represents a staggering £50 billion potential revenue opportunity.
InsurTech companies are revolutionising the ways the industry functions through innovative technological developments and new software solutions. Established insurance businesses can learn from these disruptors – or partner with them – to adapt to the changing landscape, survive and thrive.
Drivers of InsurTech growth
The prevalence of mobile devices, customer demand for personalisation in all interactions, and the rising cost of insurance are all driving the growth of InsurTech.
- Prevalence of mobile devices: More and more people are using their smartphones and tablets to access information and services, and this trend is only going to continue. In the UK, one in ten adults now use Android apps to manage their insurance policies. This momentum is signified by the rapid increase of insurance-related app downloads – up by 40% in 2022 to 2.2 million downloads*. InsurTech startups are taking advantage of this trend by developing mobile-friendly solutions that allow customers to buy and manage their insurance policies on the go.
- Customer demand for personalisation: Demand for insurance tailored to a customer’s specific needs is in the ascent. InsurTech startups use a wide range of data analytics to collect and analyse customer data, allowing them to offer personalised insurance products and services, and an engaging customer experience.
- Rising cost of insurance: Insurance premiums are rising, causing customers to search out more affordable options. InsurTechs use sophisticated technology to streamline operations and create efficiencies, enabling a reduction in the cost of insurance, making it more affordable.
Challenges that InsurTech solves
Despite the growth of insurance software and new technologies, the industry still faces significant challenges.
Many businesses in the insurance industry continue to use legacy systems that are not designed to support the latest technologies. This can make adaption to the changing needs of customers very difficult, creating a sub-par experience, as well as keeping administration costs high.
The insurance industry is traditionally risk-averse and slow to embrace new developments. This can make it difficult for large, established companies to embrace technological advancements.
InsurTech is growing rapidly, and there are many opportunities for established insurers, as well as new entrants, to adopt modern ways of working and thrive. By leveraging InsurTech, embracing innovative technology and adopting a customer-centric approach, insurers can stay ahead of the curve and capture a share of this lucrative market.
Opportunities for insurers, brokers and MGAs
Partnership with InsurTechs offers a number of opportunities for the industry including:
- Using technology to reach new customers who may not have been accessible in the past.
- The ability to offer new products and services that meet the needs of a changing customer base.
- Reduction in operating costs, enabling insurance to be made more affordable for consumers.
Join the revolution
The InsurTech revolution is happening, and there is vast potential for growth. Established insurers and MGAs can adapt to the InsurTech revolution by:
- Embracing digital transformation: This means investing in new technologies and processes that improve the customer experience, streamline operations, improve efficiencies and reduce costs.
- Being customer centric: By putting the customer at the heart of everything they do, understanding their needs and expectations, and designing products and services that meet those needs, insurers and MGAs can achieve business success.
- Partnering with InsurTech: InsurTech businesses bring new ideas and technologies to the table. By partnering with these innovative companies who are doing things differently, established insurers, brokers and MGAs can stay ahead of the curve and innovate faster.
HUG HUB brings innovative, bespoke software solutions to the industry, which improve the ways brokers, insurers and MGAs do business. To find out how we could help boost your success, get in touch today. Visit hughub.co.uk or contact us at firstname.lastname@example.org.
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