Top 10 Insurance Tech Consulting/Service Companies - 2020
Technology and the availability of new data sources are increasingly having an impact on insurance. Information, once digitalised, is being used to improve processes all along the insurance value chain. The rapid spread of internet-enabled sensors and ubiquitous connectivity are enabling new ways of communicating, information sharing, and insuring. New technology start-up firms – or InsurTech – are entering the industry to deliver some of the services typically provided by traditional insurers and intermediaries, and established technology giants (BigTech) are eyeing opportunities in the sector also.
Insurers also use technology to provide digitally-enabled services that involve more frequent interaction with customers. Alongside increased customer contact, the provision of these value-added services facilitates collection of data that can be used to improve underwriting and pricing decisions. Also, new risk pools are being created, and insurers are collaborating with start-ups to collect data and underwrite specialised or under-served niches.
Recent surveys suggest that insurers are most worried about BigTech companies disrupting the industry. In principle, these firms have the financial strength, technological expertise and customer-centric focus to offer a serious competitive challenge to incumbent insurers. At the same time, potential cannibalisation of revenues, brand dilution, and tight regulatory scrutiny, are reasons why this may not be a near-term threat.
However, there is no room for complacency. The implications of digital technology for insurance will depend on how customer behaviour, insurers’ risk-absorbing capabilities and regulatory frameworks evolve in response. The latest wave of technology may simply foster further incremental changes to the industry, similar to past technological developments, broadening the scope and affordability of insurance to more households and businesses. Alternatively, it could prove more transformative if some of the typical hurdles to radical innovation can be overcome, especially in relation to the capture and analysis of information to assess risk more accurately. Over time new entrants could build on the infrastructure created by InsurTech and BigTech to offer compelling new risk protection solutions that are aligned with evolving regulation, and in doing so, present a genuinely disruptive competitive threat.
We present to you, “10 Most Promising Insurance Tech Consulting/Service Providers - 2020.”