Levels of insurtech activity reached a record high during the second quarter of 2017 with a growing focus on claims management technology, according to a report.
The Quarterly Insurtech Briefing by Willis Towers Watson Securities, Willis Re and CB Insights reveals that insurtech funding was close to $1b in the second quarter, compared to $398m in the same period of last year.
Projects and partners
The rise is due to a growing number of insurtech deals and a global move towards research and development across all parts of the insurance chain. The report notes that well-established insurers and reinsurers are increasingly investing in technology partners.
Targeting claims management
The report identifies claims management as an area of growing interest, adding that one of the most disruptive scenarios of the insurtech revolution could be ‘a change in underlying function of the insurance value chain, from volatility management (paying claims) to risk mitigation (making losses smaller)’.
Good claims management is considered one of the biggest contributors to customer satisfaction and retention. Insurtech helps to capture, catalogue and consolidate data that can speed up the claims process and mitigate risk.
Industry trends
The report underlines a number of industry trends and key developments that will shape the future of claims management, including:
- Omni-channel service:customers expect insurers to engage through multiple channels. They want real-time and transparent information about claims, with mobile communication an increasingly important part of the service.
- Use of home monitoring sensors:connected devices will reduce the number and size of claims. New data sources will help with loss prevention and incident management.
- Versatile and powerful digital platforms:automation can unite all stages of the insurance cycle. Claims management can be improved through automatic settlement for smaller and more straightforward claims where there is no indication of fraud.
Joining the dots with RDT
Better use of data is at the heart of RDT’s business, and as an insurtech expert and a long-established partner to some of the world’s leading insurance brands, we combine the latest technology with deep industry knowledge. Contact us to find out how we are contributing to the insurtech revolution.
Source / Infographic : Quarterly Insurtech Briefing Q2 2017: Willis Towers Watson, Willis Re, CB Insights