What to Expect from the Next Wave of InsurTech
This October at the MGM Grand Las Vegas, the 2018 InsureTech Connect conference explored the future of the industry. Because the future is here. That’s according to Oliver Wyman, the presenting sponsor at this year’s digital innovation summit, the world’s largest devoted to insurance tech.
Silvervine Software was excited to join over 6,000 delegates from over 50 countries at this event. “With almost $5 billion invested into insurance tech start-ups, and more than 10X that in insurance tech spend, the pace of innovation and the opportunity to disrupt the insurance ecosystem has never been greater,” conference organizers said. So, what can we expect from the next “now”?
“Products will have a starring role in the second act,” according to experts at the conference. “Advanced technology and data will be used to design simpler products that better serve people’s real needs.”
In the words of CEO Dan Schreiber of the insurtech firm Lemonade, there’s a revolution around the corner that he calls “deep seeing,” in which AI, machine learning, and predictive modeling will distill the core product down to an algorithm, leveraging unconventional datasets to price risk more precisely than ever.
Changing the model
Not surprisingly, new business models will follow. Other types of products – financial, legal, medical – may be given away for free to pave the way to an insurance purchase; non-insurance companies may enter the field as well, partnering with insurers to achieve compatible goals. In one view, insurtech could even transform insurers to consumer advocates, working to ensure that the future of insurtech doesn’t fail consumers who are struggling financially – the digital consumer service firm Credit Karma being a case in point.
Connecting with customers
Products, AI, new models – all of this puts a lot of emphasis on the “tech” half of insurtech, but what’s behind the movement is the customer. People are the center of the industry’s future, and despite the dazzle of digital innovation, it’s important to remember that. CEO Daniel Glaser of Marsh McLennan said that in the future, we can expect to see a shift from products and protection to empowerment and experience.
Watching what’s new
As the P&C insurance software solution of choice for more than 50 carriers and MGAs, we at Silvervine were glad to have a presence at InsureTech Connect. We’re excited to see what the future holds for our industry – and we’re committed to keeping you informed as that future unfolds.
Want a quick summary of changes in our industry? Download our 11 Emerging Trends white paper.