At BrokerIQ we love to keep our finger on the pulse with all things new and innovative. So we have gathered 5 current trends in insurance industry you will certainly want to keep an eye out for!
Read on to check out a little of where we have come from, what trends are on the horizon and, in some cases, what movements are already here!
Without a doubt, the insurance industry in UK and Ireland has experienced something of a metamorphosis in recent times. In fact, in some cases, the sector is fairly unrecognisable from its more juvenile years.
We have evolved into a much more mature and sophisticated industry displaying our true, vibrant colours. Providing diligent, speedy customer service and bestowing much-needed reassurance to our clients.
Much of this evolution has come in very recent times. New innovation has propelled our sector forward. Some have happily joined the journey of new, while some have come kicking and screaming. Whichever camp you fall into, if any, it is clear that transformation and change are here to stay.
Trends in incorporating new innovations have played a substantial part in the modernisation of the insurance sector. Contrary to belief, in the very early days, the insurance industry was actually quite quick to embrace new technological trends!
Installation of large mainframes in offices to help with admin and invoicing was seen as a huge leap forward, and rightly so.
Personal computers soon followed and in the 80’s and ’90’s we had the communication essential of fax machines which were then rendered obsolete by the new phenomenon that has managed to stick around…. the World Wide Web.
Brewing over this was a fear of Y2K. Would software failures on the dawn of the new millennium sink the independent brokers, insurance companies and indeed, the entire global online community?
But some fear and hesitancy had been instilled in our community when it came to change and tech. Adding to that resistance was the impact of the Great Recession which depleted further the possibility of incorporating new originative creations for some brokers and companies.
For some, too much money, time and stress and been spent on past journeys into the tech world.
Scars had been inflicted and no one wants to get burned twice.
But that is not the end of the story. Slowly but surely, we as a sector are emerging from our cocoon and recognising that innovation, tech and modernisation are the way forward.
As we live in a SMART phone era, it’s crystal clear that tech, even for the insurance industry, is here to help, support and make life and work much more manageable.
Innovation in the insurance industry ploughs forward and there is plenty of fantastic creations to sample!
We have gathered a list of 5 of the most exciting current trends in insurance industry currently. Each of these movements has built quite a bit of traction and is likely to stay with us for the foreseeable future.
For some, it is a word to be avoided. For these fellow valued brokers, this word is filled with newfangled inventions that have a shelf life of 12 months or less. A word that potentially involves precious time spent learning, onboarding, getting to grips with and cost for companies. And as mentioned, these individuals may still be living with memories of past expeditions into the world of 80’s and 90’s tech.
But for a growing community among us, InsurTech conjures up images of help, support and ease. InsurTech has emerged as a great winner of the 21st century.
60+ new creative companies have appeared in Ireland alone in recent years offering the industry all sorts of new insurance technology that can complete an array of tasks from the time-consuming administration to the automation of, well almost everything!
Investment alone in this area is a fine indicator of its potential:
Source: Crunchbase News
According to McKinsey & Company research, 89% of insurance executives anticipate a significant acceleration in digitisation.
According to additional research, digital transformation is a top priority for 93% of insurers looking to meet changing customer needs.
We would not be betting against InsurTech as a major front runner in one of the best innovative spaces in insurance for the foreseeable future.
As a result of the global pandemic introducing a sizable portion of the public to the wonders of outstanding online services like Netflix, Amazon, Zoom and Apple, customers now anticipate the same calibre of professional service from every business and industry, raising personal insurance expectations.
From this, there is a growing expectation from consumers for a more personalised experience and product. Based on feedback from our clients, we have noticed that insurance packages built for a certain demographic are no longer enough for consumers.
People are keen for more flexible coverage options with a convenient, on-demand, all-in-one style product available to them via an app on their smartphone.
According to Youbiquity Finance research:
This study also found that as an industry we shouldn’t be as reticent about collecting data as 77% of consumers would trade their behavioural data for lower premiums and faster payouts.
Brokers with strong data analytics that offer personalized products along with smartphone technology will be in a better position than competitors.
‘Earnix’, indicates that better data collection and management which can lead to more personalised products, can:
The business benefits of personalised products are clear:
All have been positively affected by its implantation.
Personalisation should be a key feature in all new business models moving forward.
AI isn’t as scary as you might perceive it to be. There’s no need to be concerned about this latest technological advancement taking over your life, scrambling your memory and locking you up in your home for eternity.
The AI of the insurance world isn’t based on an elaborate Hollywood movie where Arnold comes to save humanity.
We don’t know which would be scarier.
Instead, this software has the potential to be a game changer for our industry. Investment in AI and similar technologies such as Big Data Tech, Machine Learning and Predictive Analytics, is increasing exponentially and are very much at the forefront of brokers’ minds.
And do you know what? For a good reason. They are proving to be seriously profitable…
Well, its benefits have been felt across the board:
Both the customer and the broker are likely to have less of an active hand in the process of acquiring insurance. As algorithms learn and progress and more and more data is collected on individuals, we will see almost instantaneous purchasing of almost all types of products.
With the rise in AI, it is to be expected that many within our sector are watching closely to see what can be offered to deal with this issue that is a scourge to our system.
A recent study carried out by ABI discovered some very alarming statistics:
ABI discovered in one year alone 107,000 fraudulent insurance claims worth £1.2 billion were uncovered by insurers in the UK alone.
The legacy systems that are in place have more often than not, failed to identify fraudulent claims.
But with AI, the detection of patterns and any deviation from the norm would highlight any unusual behaviours and deal with them appropriately.
Not to mention that these systems will run full background checks and other procedures during the initial customer orientation.
It is no secret that certain branches of our industry can be fairly time laborious. Customers often have quite a wait between both the adjudication and then processing of a valid claim. As we are seeing throughout our industry, the need for more instantaneous resolution for clients is fully expected.
With AI technology, we are witnessing the rise of drones to determine asset damage through their computer vision software and the determination of how much repair would cost.
We are also seeing the use of satellites that are effectively using geospatial data and the Internet of Things collecting an array of data sets.
All this onsite data can provide a much quicker and more accurate picture of the case in point and therefore determine the best way to move forward.
Such an utterly valuable addition from the AI world. This technology, which we are beginning to see implemented in more and more insurance firms, allows brokers to convert handwritten documents to the typed word.
Many of the legacy systems in numerous firms have countless handwritten documents that require updating, renewing or processing in some way. With OCR, this tech digitalises these forms in seconds.
Additionally, OCR is able to extract info from official documents and ID’s and process and store it with clients’ profiles. It is then able to take this submitted data and analyse it further for the benefit of all involved.
This technology has the ability to shave HUNDREDS of hours of valuable broker’s time which would have been spent inputting this information manually and in turn, produce noticeable savings for the company.
There is no doubt that artificial intelligence and the emergence of deep learning will propel the insurance industry to something quite unrecognisable in the next ten years.
The growing wave of expectations for all businesses and industries to have some form of sustainability and ESG persona is palpable. No longer can insurance companies hide under a rock of unknowing and indifference as to what their ESG commitments are and to whom they underwrite and in turn support.
So what is driving this uptake?
Source: Life Insurance International
All corners of society are waking up to the effects industrialisation and advancement have had on our earth, its components and its people. Customers, particularly those from the younger generations, will simply not deal with a company if they are not in any way sustainable and have no element of ESG principles.
This trend will only strengthen in the years to come to the point where non-sustainable firms
and brokers will struggle to find their place in the industry. Incorporating sustainable and ESG values into your business strategy is a no-brainer.
We here at BrokerIQ, which ensures sustainability is to the fore of our business model, anticipate that sustainability will feature an element of accountability or even have a measure of the imperative in the future.
In the past, it was thought that incorporating ESG and sustainability into your business strategy would inhibit growth and profit, but what we are actually seeing is quite the opposite. Companies with strong ESG ratings consistently beat the market in the medium and long terms, according to McKinsey.
Sustainability initiatives may require a short-term investment, but they pay off in the long run.
Blockchain technology was initially created with the aim of generating a decentralized network that is impenetrable and upon which cryptocurrencies could function.
We are all familiar with Bitcoin and Etherium and that they are a huge part of the story of blockchain but, this technology has evolved into so much more.
In more recent years, since its inception in 1991, it has shown its incredible value to other business sectors such as finance, supply chain management, healthcare, and of course insurance.
Blockchain for insurance is predicted to grow exponentially in the next eight years according to research carried out by Propheymarketinsights in June 2022.
The global blockchain insurance market was worth $77.85 million in 2020, and it is projected to grow to $39.56 billion by 2030, with a compound annual growth rate of 72.4%.
This technology enables brokers to track and manage physical data digitally and in turn ensures defence against fraud in automated transactions.
Smart contracts can be developed using blockchain technology by customers and insurers which allows possible claims to be processed in a fast, transparent but safe manner.
Within our sector, Blockchain technology for insurance companies offers unique and outstanding value. We are seeing significant efficiency gains in:
All the while enabling trusted and traceable real-time data sharing between numerous parties.
Here at BrokerIQ we are watching developments in Blockchain technology within the insurance industry very closely and are fascinated and excited with all that it offers our sector.
BrokerIQ are paying particularly close attention to developments in the security and safety element it offers our niche. We feel that there is a need for secure but also transparent systems whose robust nature gives full confidence to both the consumer and the broker.
Blockchain will be playing a significant part in the story of the insurance industry for many years to come.
These current trends in the insurance industry are certainly not the end of the story with many more up-and-coming initiatives and innovations only waiting for us on the horizon.
The 5 trends in the insurance industry we have collected together are being spearheaded by some truly amazing insurance software companies that BrokerIQ felt needed a mention due to their steller creations and services.
Well, we had to mention our own BrokerIQ which sits right between the customer and broker providing an array of services, features and value.
Our platform and accompanying apps have propelled us to a point in time now where we are the only insurance technology offering support direct to brokers ensuring full customer engagement and retention.
BrokerIQ is a convenient Customer Engagement platform built specifically for mortgage and insurance brokers to communicate and share documents. Whilst also giving clients a place to upload and access all of their financial data – all in one digital wallet.
nSurely’s (now Inaza) platform harnesses artificial intelligence (AI) to help insurers evaluate risk in real-time, beginning with the motor usage-based insurance sector.
“We are breaking new ground in the application of artificial intelligence to deliver innovative solutions for the insurance industry. By gathering data in real-time and leveraging the big data analytics of the platform, we can give insurers actionable data to mitigate and price their risk while offering transparent and tailormade motor insurance solutions.”
Niall Crowley, CTO and co-founder
A company with personalised offers for customers.
We recently launched our new brand campaign, ‘give better a try’, which plays to the innovation theme and is built on the insight that, as people, we all respect people who try to do things better.
Managing Director Niall O’Grady
Piprate is the leading blockchain-based data exchange platform for the insurance industry, enabling the secure transfer of data between parties. Founded in Dublin, Ireland in late 2017, Piprate continues to be led by co-founder and CEO Stanislav Nazarenko.
These powerful creations are superb offerings from some of the most foreword-thinking companies in the world. Their contribution to the current trends in insurance industry cannot be overlooked.
Like the butterfly from its chrysalis, the insurance industry has awoken to the modern world. The sheer peace of mind our industry brings to so many guarantees that our sector can not only succeed in the future, but thrive.
The future of the insurance industry is certainly brilliantly bright, so be sure to bask in the sun of its glorious innovation!
Now let us know what you think! Is there a trend in the insurance sector you feel is one to watch? Be sure to leave a comment below to share your thoughts!