Rethinking insurance: how prevention is better than a claim🔎 embedded insurance focus, how life insurers enhance customer experience and more

A new perspective on an old-established industry. Find latest report, news and information about startups and innovations in the insurance industry, with a focus on best #insurtech initiatives and venture capital investments.

Must-read stories

 How tech can help life insurers enhance customer experience

Within the life insurance industry, term insurance sales are heavily influenced by price. The landscape is competitive, with agents and customers driving constant reprices – even down to pennies.

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“Bring on the embedded options” - Purchase channel preferences for homeowners and renters insurance

P&C insurers are feeling the impact of customer change in the decision-making process for protecting their housing and mobility.

A solid risk product teamed with useful value-added services and customer experience is not enough to stack the odds in an insurer’s favor. The final key component is making it easy for customers to purchase when, where, and how they want. Both generational segments strongly agree that traditional insurance company and agent channels continue to deliver the best purchase experience for home and renter insurance, as reflected in Figure below.

However, Gen Z & Millennials are very open to buying insurance through another channel, such as part of the home buying or renting process, whether through their bank or credit union, mortgage company, or rental leasing company. There is very high interest in having the renter insurance included in the monthly rental fee (86% of Gen Z and Millennials and 76% of Gen X & Boomers). High-tech options like Amazon and Google have a strong interest from the younger generation.

The bottom line is that customers are increasingly moving away from the traditional siloed, separate purchase of insurance to one that is offered or embedded at the time of purchase or renting. This is a major distribution channel shift that will require new partnerships and relationships to meet customers on their terms.

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Rethinking insurance: how prevention is better than a claim

Technology is helping insurers to minimise risks or eliminate them altogether. But will early intervention push the industry out of a job? Look at FT deep dive in Health, Mobility, Home and Life perspective.

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Reports and Studies

The Insurance Heads of Digital Report 2022

Today’s insurance heads of digital are under pressure to modernize and innovate with greater speed to achieve growth of their business. Some of their significant challenges include overcoming resistance to change and a difficult recruiting market.

Insurance tech spending will grow by over 25% in both the US and the UK between 2022 and 2026, per our forecast. This will support digital leaders’ push to digitize core capabilities along the value chain, improve digital self-servicing platforms, and enhance personalized experiences and products.

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Post of the week

The Art of AI Maturity

Accenture defines AI maturity and recommends 5 ways to advance and accelerate AI business transformation.

While industries like tech are currently far ahead in their respective AI maturity, the gap will likely narrow considerably by 2024 (See chart below).

Automotive is betting on a big surge in sales of AI-powered self-driving vehicles. Aerospace and defense firms anticipate continued demand for AI-enabled remote systems. And the life sciences industry will expand its use of AI in efficient drug development. Still, there is enormous room for growth in AI adoption across all industries and an enormous opportunity for those companies that choose to seize it.

For industry laggards like financial services and healthcare, a range of factors may be contributing to their relatively low AI maturity—including legal and regulatory challenges, inadequate AI infrastructure and a shortage of AI-trained workers.

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Investment and Startup Use Cases

 InsurTech PlanetWatchers closes $11mn Series A funding round

PlanetWatchers claims to be able to provide detailed crop insights, at any time, regardless of weather and lighting conditions through advanced machine learning. It supports crop insurers and the agricultural industry in verifying cover crops, tillage, planting dates, acreage, crop classification and weather damage at scale. 

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 Pie Insurance Announces $315 Million Series D Round of Funding

The company will use the funds to support Pie's growth initiatives that directly impact its small business customers, including expanding into new lines of business, fully transitioning to a full-stack carrier, further innovating upon its advanced proprietary pricing algorithms, and delivering world-class user and product experiences directly to small businesses and the partner agents who serve them.

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Indian insurtech Zopper scores $75M in Series C funding and more briefs

The company operates an API platform for insurance infrastructure and delivers small, personalised insurance products from partner insurers to distribution partners. 

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Insurtech Digest Back Issues

Look at Letterhead archive. Read more

Issue 125 is out - Travel insurance Outlook, Smart Home and Global Business Ecosystems 2030 – Market Size and Potential

Issue 126 is out - Most Innovative Companies 2022: None insurance into the list

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Alberto