Top 20 Insurance Tech Solution Companies - 2020
One of the most significant hurdles in insurance digital transformation has been getting people— both customers and employees—to embrace new ways of doing things. However, the pandemic has changed all that; now, many more people are willing to overcome their technological reluctance. Most insurers have long since recognized the necessary change towards a digital future: Taking out new policies and managing existing ones, comparing dental offers, submitting bills and reporting a car accident – all these can now be done online. There are two reasons for this: Costs and customers.
First, as part of the ever-increasing regulatory demands, regimes such as Solvency II and IFRS now drive insurers to better understand risk and capital within their business. While Solvency II is a European initiative, its main principles are being adopted across the globe in countries such as Japan, South Africa, Mexico, and Australia. In addition, there is a growing trend for consumer protection legislation, in response to the incorrect selling of insurance instruments in the past. This legislation increases compliance costs and potentially impacts regulatory capital at a time when there are enormous competitive pressures.
A second major factor is the fact that over the last few years, insurers have struggled with low investment returns on government and corporate bonds. Insurers are also often required to hold a significant portion of their assets in bonds for regulatory purposes, with the cash flows from bonds being a good match to their long-term liabilities. The long duration of low returns, however, is forcing insurers to look at other investment types that mirror the cash flow profile of bonds but provide a higher rate of return. As a result, insurers increasingly look toward infrastructure and corporate loans, which were once the sole domain of banks. Thus, the delineation between banks and insurers is more blurred than it used to be.
The next few years present major challenges for insurers, but those that adapt and offer new products and services that customers seek will differentiate themselves.
We present to you, “20 Most Promising Insurance Tech Solution Providers - 2020.”