Digital Transformation

Insurtechs have secured more access to capital in the last few years and by the end of 2020 the total market cap of listed insurtechs surpassed $22 billion, according to the World Insurtech Report 2021.

Jerry launched a car insurance comparison service in 2019 using artificial intelligence and machine learning. The company has more than 1 million customers across the U.S. and has expansion plans.

The pandemic has served as a catalyst for putting digital transformation across insurance on the fast track, and claims is one of the focus areas that is primed for implementing digital capabilities. As more claims information is captured and managed digitally, new opportunities to leverage artificial intelligent technologies arise. This leads to a vision of full automation, high levels of straight-through processing, and (logically) a diminishing role for claims professionals.

Forrester research finds that even the most tech-savvy claimants want the reassurance of a human voice handling their claim.

In other news: Hippo launches Builders Program; handdii wins the 2021 ACORD Insurtech Innovation Challenge New York; Blockchain-backed title insurance launches in five states.

A new report, IT’s Changing Mandate in an Age of Disruption conducted by the Economist Intelligence Unit, supported by Appian, suggests that to continue with various digital transformations and increase adaptability for the future, some IT improvements must be made.

Truepic Inc., which helps companies like banks and insurers fight fraud by verifying images, raised $26 million in a funding round led by Microsoft Corp.’s M12 venture capital arm.

In other news: Ethos adds board members, new executives; One Inc partners with Mastercard on insurance payments; and Notion, a Comcast company, works with Honey Insurance in Australia.

Amazon will require third-party sellers to secure product liability coverage after reaching $10,000 in sales in one month on Amazon.

Carriers, pressed by lower expense insurtech models that emphasize direct-to-consumer engagement and new, rich data sources, are beginning to encounter a bifurcation of risk and client characteristics.

The decline is likely because of a lack of proactive support and personalized attention, according to a J.D. Power study.

Luis Pino began to see the pain points in insurance industry operations. He believed that agencies needed better technology. Pino used that idea to launch Agentero, a digital insurance network.

Over half or 62%, of insurers, say they will invest in risk management over the next year, with 55% saying they’ll invest in customer and employee data protection, according to the FIS’ 2021 Readiness Report.

In other news: Nexar partners with New York’s Black Car Fund and Hannover Re collaborates with ExamOne.

The data and decision-making insights gathered from IoT devices have been revolutionary for insurers, and the potential of this technology is just starting to be realized.

Pet insurers are using the same tools as other insurtechs to meet the needs of pet owners.

The pandemic didn't stop insurers from wanting to invest heavily in digital capabilities, Deloitte survey finds.

Insurers could see retention rates drop if they neglect to defend existing revenues through product and distribution innovation.

New technologies are expected to fundamentally change how insurance is distributed, but alongside this redefinition of roles comes an accompanying talent crisis.