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A sign that insurers are actually investing in technology

Insurers have talked about the need to be more digital for years now but there is one clear sign that they are actually following through on their plan.

According to a KPMG insurance expert, a significant number of insurers are investing in ‘insurtechs’ so much that it has become an “incredible trend,” said Laura Hay, global head of insurance at KPMG International. The fact that so many insurtechs are seeing more investments is a signal that insurers are turning to them to help boost their digital offerings.

According to its research, KPMG found that “the third quarter of 2020 showed incredible insurtech spending” as 73% of insurtechs raised capital in the quarter, she reported. It is the first time those numbers have reached such heights.

KPMG also gauged customer sentiment in a series of what Hay called “touchpoints.” Within this latest round of surveying customers, “40% said they want efficient processing of claims, which is really screaming for the digital agenda.” And it appears their calls are being answered: insurers seem to be placing their focus on claims processes.

It is an area that saw a surge as the pandemic hit, primarily in terms of inquires and claims submissions. “And it really highlighted the need for claims processes, in particular, to be more streamlined, or digitally enabled,” Hay said.

Jason Storah of Aviva commented that the transactional administration part of the insurance buying process is a big timewaster as far as he’s concerned. That time could be better spent understanding the coverage they are buying or exploring other options they may need.

The pandemic has created opportunities but also threats and accelerated trends. It is going to require a really strong understanding for insurers around their strategy, their purpose and their operating model. To review the findings, visit:

https://www.canadianunderwriter.ca/insurance/a-sign-that-insurers-are-actually-investing-in-technology-1004201172/