Expect a big surge in consumer usage of Insurtech
The number of home insurance policies utilising Insurtech will exceed 86 million globally by 2022, up from an estimated 60 million in 2017. This growth will average 7.5 per cent per annum, as the integration of smart home technologies and AI underwriting systems takes hold in the insurance market.
The figures are contained in new research from Juniper.
The new research, Insurtech: Market Readiness, Forecasts & Key Vendors 2017-2022, found that personal broking apps such as Brolly and Sherpa will be utilised by customers to manage their insurance coverage with minimum effort, streamlining the insurance process.
Smart Home Technologies to Reduce Claims
According to the study, a common approach is to include smart home products within insurance policies. This approach aims to actively reduce incidents such as water damage using leak sensors to detect issues early, and hence lowering claims.
Far East & China will have the greatest market share of home insurance policies issued utilising Insurtech, reaching 27 per cent by 2022, driven by new insurers such as Zhong An.
It predicted that smart home technologies, combined with AI underwriting systems, will improve the speed and quality of policy delivery, saving customers an average of $221 per policy by 2022.
Established Insurers Leading Insurtech Investment
The authors said that Insurtech investment is being dominated by investment arms of established insurers, ranked by Insurtech investment activity:
- Allianz Ventures
- AXA Strategic Ventures
- Munich Re/HSB Ventures
These insurers are seeking to harness Insurtech to improve their products and protect against disruptive forces in the market. The investments are currently being dominated by European insurers, demonstrating the leading role these vendors have in the global market.
Juniper said this investment will focus on systems to speed up the claims process, increasing efficiency, saving insurers 4.9 million hours annually via AI claims handling by 2022.