SPECIAL FEATURE: INSURTECH
8 insurtech trends for 2020 This year will see the insurtech revolution accelerate, but in what directions?
Looking ahead: Insurtech Australia’s Rita Yates
By Rita Yates, Chief Executive Insurtech Australia
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ast year was a good one for insurtech in Australia. We’ve seen strong growth in the number of insurtechs operating in Australia, along with a realisation of the impact that insurtech can have on the industry. We’re also seeing established insurers starting to embrace insurtech as part of their digital strategies. We expect this progress to continue through 2020, with several key trends to emerge. 1. Evolution of partnerships: Partnerships between insurtechs and incumbents will become more abundant across many areas of the value chain, and those that are in the early stages will start to mature. We know the insurtech ecosystem is somewhat unique, in that the majority of insurtech organisations are looking to partner with insurers, while many of these incumbents don’t want to do everything internally and are now looking to find insurtechs to work with that can solve some of their pain points. These partnerships will also likely lead to more innovative ways to distribute insurance, including non-traditional avenues such as the recent partnership between Evari and Bunnings to offer insurance to tradies. 2. The continued rise of AI and machine learning: Artificial intelligence (AI) is likely to become the leading piece of technology used by insurtechs and continues to be implemented or explored by insurers. AI and machine learning have the potential to impact every aspect of the way insurance businesses are run, making almost every process more efficient. AI will likely have a particular impact on underwriting and pricing, as well as helping to automate processes and enhance personalisation of insurance products. The 2019 Insurtech Ecosystem Report showed 24% of insurtech propositions are underpinned by AI and machine learning. Expect this percentage will grow. 3. Asian potential for Australian insurtechs: Australian insurtechs will look globally for both
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February/March 2020
