The insurance industry can sometimes be accused of being conservative and slow-moving. But by reading international trend reports, we know that the future is digital. This is also confirmed by the insurance giants’ annual reports, who all have one thing in common – digitalization. So, how is this going to happen, and how will the insurance industry keep up with the digital transformation? We have identified four ways the insurance industry is, in fact, turning digital.
1. New digital native companies enter the market
In recent years small, well-funded insurance start-ups have entered the market. Using the latest technology, for example, AI or integrated technology, they launch smart niche insurance products. Some examples include pay-as-you-go car insurance or home insurance fully managed with an app and bot.
2. Insurance giants turning their Atlantic cruisers
As previously mentioned, the insurance giants are aware that they must turn digital and commit to launching more digital touchpoints and initiatives.
3. Insurtech companies supporting the giants
A trending approach, that is, in a way, a combination of the others. Insurtech companies collaborate with the insurance giants, helping them take digital leaps in one sector after another. As the insurtech companies can also work with several insurance providers, they also offer richer data.
4. Enormous tech companies entering the arena
Amazon recently partnered up with an Indian insurance provider, offering smarter car insurance. No one knows what the large tech companies are up to, but we have seen it before as they take sudden steps into new areas. And what would happen if Google or Facebook commits to launching insurance products?
What do you think? Have we missed anything? Which one do you think will be the dominant approach, making insurance digital? Provide us with your thoughts on LinkedIn.