Naturally we like to keep up with what’s going on in the sectors we design products for, so whenever I see an interesting new insurtech platform or service I checkout their website. As a result insight is gathered around what startups are offering and how this is evolving over time.
Here are the top 3 industry trends I’ve observed over the past few months:
1. Build your own insurance service
Providing services for service companies is a real strength of the UK economy so it’s no surprise there has been a rise in startups offering ready made B2B insurance solutions for incumbents. These fall into two groups: those which help you create a new insurance offering (like Katalyst, Boost, EIP) or those that make existing offerings more efficient (like Vericred, CyberCube, Briisk). Some are specialised to certain insurance sectors, other work across the board.
Using these platforms allow the industry giants to rapidly create new insurance products, improve existing ones and enter new markets. This also paves the way for any bright spark with an innovative insurance idea to enter and disrupt the market, or bolt them into an existing service (like in Revolut’s app or bank accounts that offer insurance perks) - exciting times!
2. Real-time insurance
Due to the mass collecting and processes of data we’re entering an age there where your risk rating will vary hour-to-hour, minute-to-minute and even by the second. This increases the accuracy of the amount you need to pay to cover yourself driven by your real world actions.
This trend is big in the vehicle insurance space for both individual drivers (Avinew, By Miles and even Tesla) and commercial fleets (Flock, Rideshur, Greater Than). Using telematics data (speed, trip duration, tyre pressure etc.) from vehicles combined with external data (your age, the weather, the time of day etc.) a risk score can be allocated to each driver with directly corresponds to how much they’ll be charged for their vehicle insurance. This can then be priced in real-time, varying your insurance payments - in the same way we get charged for electricity based on usage.
Health insurance is also being revolutionised, with Qumata using your phone’s data to decide your risk profile - if your phone has tracked lots of steps then you’ll pay less as it’s assumed you’re healthier. With the number of global wearable devices set to exceed 1 billion, more data points of increased accuracy will be available to further increase this trend. Great if the data is accurate and processed in the right way, not so great if you don’t trust the algorithms to correctly generate your premium or you’re looking to preserve data privacy.
A broader trend across all tech areas, AI is set to speed up our workflows and provide deeper insight into the data we collect. Veezoo uses natural language processing to show you data insights. Products like this feel like the future of how we interact with data, applying an abstracted level above mere data collection and display. Eventually AI tools will be able to not just present us with trends we’ve requested, but will notify us when an important trend first appears so we won’t even have to study the data, just take action.
Looking to future proof your insurtech app?
Looking to future proof your insurtech app? Inktrap can help you design and build the products your customers deserve. So whether you’re looking to launch a new idea, increase retention rates or just refresh the look and feel schedule a call and we’ll show you how we can help.