A new report created by Tällt Ventures through the analysis of global Insurtech investments that covered 5M tech startups has been released today 9th of May. The report, “Insurtech Disruption Trends 2017, Artificial Intelligence”, features 60+ tech ventures that use artificial intelligence and which have the most potential to influence, change and disrupt the global insurance market. Part of the report is dedicated to the identification of key sectors within the industry set to be impacted most by AI.
Neosurance, a startup that provides microinsurance solutions, has been included in the Insurtech Disruption Trends 2017 report making it one of the innovative startups that will disrupt the insurance market. Neosurance was founded at the beginning of 2016 and is currently part of the Plug&Play Insurtech Accelerator based in Silicon Valley. The opportunities that opened with the inclusion in the Plug&Play selected batch were huge and will be decisive in providing the occasion for closing new deals with communities, insurers and investors. The company has recently been awarded the Insurance & Previdenza Elite prize for “best insurance start-up” by Milano Finanza, an important Italian-based newspaper focused on the financial sector.
According to Tällt over $1.35 billion have been invested into startups focused on AI in the last five years, with levels predicted to grow exponentially. Historically slow to innovate, the industry is working to catch-up with startup rivals by embracing these new technologies and AI innovation is where some of the world’s most experienced investors are putting their money. The top VC firms worldwide continue investing on insurance AI startups, almost doubling such investments since January 2016 (80% increase).
The potential for jobs, especially in data driven roles, to change with the introduction of artificial intelligence means the industry is now facing a pivotal turning point. Through embracing artificial intelligence, insurers can refocus employees operating in data-driven roles into ‘caring’ roles, focused on customer service. And by bettering the ‘human’ aspect of roles, insurers will build trust with customers.
Harry Clarke, Head of Research at Tällt explains “Currently the industry is concerning itself with the likelihood of robots taking jobs, when in fact AI should instead act as a discussion point for how those employees could be freed up and redeployed.”
The use of AI across entire sectors in insurance is currently unfeasible, and negligent considering our current level of understanding around much of its potential. Unique tasks involving less data will remain better handled by humans, whereas repetitive jobs requiring large-scale data input are a likely candidate for AI replacement. For all tasks in between a combination of machine intelligence and human input and creativity will prosper.
Tracking the top 10 largest investments into insurance focused AI startups, the investment figures mirror this strategy. A third of the largest ten investments have been into claims management, a sector where AI is likely to outperform a human, totaling funds of over $81 million.
Harry continues: “Market share is at risk for those who ignore the improvements to efficiencies, customer interaction and risk selection by not embracing these AI technologies.
As the Tällt report illustrates, there is no shortage of potential for the application of AI within insurance. The hurdle to be overcome however, is how these new technologies better improves the customer experience in an industry that has a notoriously futile relationship with its customer.
Neosurance is trying to do just that: improve customer experience and address an audience that is more and more part of the ‘connected generation’. In a world where the smartphone is a proxy of the customer it would be a wasted opportunity not to address clients where they feel most at ease, while using their devices. The average attention span of people is getting lower and lower and our daily lives seem to be made up of micromoments related to the use of smartphones. Neosurance has indetified this opportunity and has created an SaaS solution for insurers based on artificial intelligence.
Neosurance’s solution allows insurance companies to sell limited time insurance covers via push notifications that arrive directly to the user’s smartphone. By gathering contextual data related to the customer at a given time, the intelligent system is capable of identifying the potential specific insurance need for that customer and send a notification on the smartphone. The user can choose to activate the cover with 4 easy taps on the screen as part of a seamless digital customer experience journey which has been designed together with the insurers. For the customer this means insurance is always close at hand when they need to be protected, with the possibility of buying personalized products on the spot directly from their smartphones.
Tracking over 5 million startups globally, Tällt’s latest report gives unique insights into the emerging insurtech market offering analysis on the latest technology, trends and startups to watch.
Go here to read the full report by Tällt Ventures: http://www.tallt.ventures/work/insurtech-disruption-trends-2017-ai/
Neosurance was founded at the beginning of 2016 by Andrea Silvello – CEO and co-founder of Digital Tech with more than 15 years experience in strategic consulting, and Dario Melpignano – co-founder of Neosperience, the leading digital customer experience platform and it has recently gained a pre-seed investment of 230.000 euro. Neosurance offers micro-insurance in a push manner based on a system capable of correctly perceiving insurable moments through an evolved AI and machine learning system which elaborates data and “learns by doing”. The Insurer is thus capable of offering the right coverage when the customer actually needs it through a seamless mobile user experience.
Tällt Ventures helps companies stay relevant. They provide unique intelligence on over 5M tech startups globally. Through data-driven insights and thought leadership into rapidly changing global markets, they connect corporates with the ventures and people most influencing the change. Then they work with clients to acquire or partner with new ventures or work together to create and scale new tech businesses.