How are InsurTech Companies Shaping the PostPandemic Business World? The evolution of technology and rapid digitization have transformed how businesses work. As such, insurance tech has played a massive role and driving factor behind the transformation of traditional insurance processes such as claims management, underwriting, policy administration, and lead capturing. The global coronavirus health crisis has stimulated the growth of insurtech across the globe, highlighting the importance of innovation in times of disruption and volatility. This has given a boost to insurtech companies, whose futuristic and digital-first approach has empowered them to successfully cope with challenges while adapting to the new normal.
Insurance Technology: Market Size In 2020, the global market size of insurtech was valued at $2.72 billion. This figure is stipulated to increase and reach $3.78 Billion in the year 2021, and $60.98 Billion by the year 2028, at a compound annual growth rate of a whopping 48.8%.
Ways InsurTech Companies are Shaping the Post-Crisis Insurance Industry In the current age, insurtech companies are growing rapidly. As the insurtech market grows, more and more insurance tech companies and startups will enter the industry. Let’s see how insurtech companies are helping insurers.
Business Stability Stability is a crucial aspect insurance companies must fulfill in order to drive business success. By leveraging insurance tech solutions, businesses can enjoy stable business models. Insurtech companies help businesses capitalize on tech-centric business models that offer clarity, stability, and predictability.
Innovation As technologies such as AI, ML, big data, NLP, and blockchain are getting more mature, they are helping insurers to transition to protective models rather than preventive ones. By prioritizing innovation, insurance companies can unlock post-crisis growth. Insurtech companies are offering innovation-led solutions to help insurers cut costs, drive productivity, and implement safety measures against disruption.
Low-Cost Option Insurtech companies offer end-to-end solutions that insurers can implement with ease. The implementation of these insurance tech solutions is not only quick and hassle-free, but it also helps insurance businesses save time and costs on maintenance and training. Moreover, a majority of insurance technology solutions function on the pay-as-you-use model and help businesses save exorbitant upfront capital investment. The combination of instant value proposition, independence from staff, and minimal financial liability make insurance tech a low-cost, high-value option.
Final Words The insurance industry is facing a number of challenges, from economic instability caused due to the COVID-19 pandemic to shifting customer behavior. In this regard, insurance technology plays a pivotal role in the growth and success of insurance companies. Source: Top Reasons Why InsurTech Companies are Making Waves in the Industry