The rise of Insurtech – digitalising the post-pandemic insurance industry
The definition of insurance is protection against potential risk. For those companies providing insurance, whether to consumers or businesses, being able to accurately predict the likelihood of disruptive events occurring is critical to their business models.
Yet as with almost every other industry, the insurance sector was severely exposed by the pandemic. Based on one estimate, insurers lost around $55 billion globally – only Hurricane Katrina was more damaging.
At the same time, major social upheaval and changes to buying behaviour has impacted customer retention. According to another report, 61% of insurers felt the pandemic had impacted customer acquisition. Where are these customers going? Increasingly it would seem they’re heading not to other insurers, but to companies more usually referred to as technology giants – the same report noted that policyholders’ willingness to buy insurance from these businesses leapt from 17% in 2016 to 44% in 2020.