Insurance technology or InsurTech describes the further development of the insurance industry through new technical systems and alternative business models. The companies that operate in this sector are called InsurTechs and encompass segments such as peer-to-peer insurance (P2P), health & e-commerce insurance, contract management etc. Through innovative solutions, InsurTechs disrupt currently established processes and enable more flexible, user-friendlier and faster services.
From my experience working in a bespoke software development company, I know that innovation drives the economy forward. That is why innovation-driven software solutions are crucial for establishing new industry standards and securing competitive advantage in highly saturated open markets. InsurTechs divert a great deal of public attention on themselves and attract incumbents, entrepreneurs and investors to take a closer look at all the possible use cases. Let’s explore the top seven InsurTech trends to look forward to in 2021:
1. Customer-centric Solutions
Generally speaking, the interdisciplinary sector of InsurTech originally tried to get the best of both worlds – traditional insurance and innovative technology. Putting the end-customers needs and meeting ever-increasing demands was a top priority from the early days back in the 2010s. Field experts recognised that younger generations enjoy a personal touch to everything – from their to-go coffee cup to their phone cases and replicated this model to create new attractive insurance products.
After it became clear that the one-size-fits-all approach is no longer feasible, new challenges began to emerge. Developing appealing products with an individual touch that are desirable right now and remain relevant in the near future is not an easy task. Hassle-free interaction with your digital insurer, a click away from filing a claim or tracking a policy status – the doors to the era of on-demand services have just opened, and there is no turning back.