EY's Tom Bull explains why, despite a slow start, an exciting future now lies ahead for insurance.
InsurTech is finally catching-on.
The industry has only recently woken up to the many opportunities that new technology offers and now we’re seeing more firms investigating what phones and apps can do for them.
But the insurance industry is just catching up with its customers.
Consumers, used to seamless experiences from many of their interactions, are expecting to see it from their insurance companies too.
The big, established players in particular have recognised the need to embrace new technologies to remain relevant and engage with customers.
This is more crucial than ever as new players have entered the field, all with an eye on the prize. Jumping on the digital bandwagon is no longer an option – but a necessity for all insurance companies – no matter their size.
Probably the most exciting development I think in the world of InsurTech is wearable technology.
Fitness trackers and diet tracker tools in particular help people improve their lifestyles and become healthier which, in turn, helps drive down premiums. A win-win for all!
Another game-changing area for InsurTech is big data.
We are seeing an explosion in new data from sensors being installed in homes, cars and wearables, as well as social media. This creates big opportunities but also brings with it some definite challenges.
The challenges are how to use the data effectively and consistently but the prizes for those who get it right are huge.
The ability to assess risk more accurately and to reduce fraud will enable companies to offer customers a more tailored product, at a more competitive price.
Despite its slow start, investment is now beginning to flow into InsurTech and new innovations are now really starting to gain traction, especially in the claims world.
I think Artificial Intelligence represents the next generation of smart automation, helping to anticipate the needs of customers rather than just delivering the best technical response.
I think the future looks bright and I for one, can’t wait to see what new innovations lie ahead.
Read more: The Money Maker Episode 6
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