Surviving the Digital Reinvention in Insurance: InsurTechs to the Rescue

APR 06, 2021

For an industry usually perceived as slow in adopting digital technologies, the insurance industry has attempted to keep abreast of technology driven fast-paced innovations in the recent years. Technology is a dramatically evolving industry, and digital advancement in the field of insurance is accelerating. New technologies in insurance have enhanced customer interaction experience and insurer’s operational efficiencies.

The first significant stride of the insurance industry was digitization, which is now being followed by the ‘InsurTech’ wave. This wave is redefining how insurance companies operate, and propelling them towards a customer-centric strategy.

AI is a widely used digital tool in the industry today. Over the past few years, AI technologies have matured significantly leading to increased adoption. Many insurers are confident that they have in-house capabilities to take up AI implementation. However, the more companies work with AI, the deployment challenges keep increasing.

A recent Gartner research shows only 53% of projects make it from artificial intelligence (AI) prototypes to production. CIOs and IT leaders find it hard to scale AI projects because they lack the tools to create and manage a production-grade AI pipeline. The road to AI production means turning to AI engineering, a discipline focused on the governance and life cycle management of a wide range of operationalized AI and decision models, such as machine learning or knowledge graphs.

To move out of this predicament, insurers increasingly turn to the experts - InsurTechs. InsurTechs are technology-led companies providing operating platforms which take digital insurance to the next level. Their combined insurance domain and technical knowledge equips them to extend innovative offerings across the insurance sector. InsurTechs use digital channels, expert strategizing, and deploy autonomous AI adoption.

InsureTechs could help insurers:

InsurTech value drivers

Using digital technologies, web and mobile app based delivery platforms, machine learning and AI, there are several aspects of the insurance value chain that can be impacted.