5 Key Areas of Insurance Innovation
Eos Venture Partners, a specialist InsurTech VC established as joint venture established between RAW Capital Partners and Sam Evans, an ex KPMG Partner in 2016, highlights key areas of innovation in the insurance industry in an article published by Oxbow Partners:
- Efficiency Improvements: InsurTech is helping lower costs across the insurance value chain. For example, exhibitor RightIndem (Bitesize profile) are digitizing and automating the motor claims process, helping insurers to decrease their operating costs and improving the experience for customers
- Changing client interfaces: InsurTech is facilitating new customer touchpoints, helping insurers to improve the customer experience. For example, exhibitor Spixii (Bitesize profile) use artificial intelligence and machine learning techniques to power a chatbot to communicate with customers. Insurers can move away from form-filling to “chatting”
- Improved underwriting: New technologies are allowing insurers to improve their underwriting processes. Specifically, the use of new data sources to manage risk and new technologies to price risk (e.g. drones) are driving this innovation. Arowana apply machine learning techniques to unstructured data to generate (what they claim to be) market out-performing loss ratios. Dropin provides insurers with HD video streams from sources including drones to give insurers better insights into the objects that they will be underwriting.
- The Internet of Things: InsurTech is continuing to push innovation in both commercial and retail applications of IoT. Neos (Bitesize profile) use connected technology, such as smart smoke detectors and motion sensors to reduce the frequency and cost of claims and increase customer retention by offering a modern, differentiated proposition
- Data science: InsurTech is offering insurers the opportunity to gain much greater insight from their data and the potential to shift the entire insurance proposition from protection to prediction and prevention. No companies that fit this category exhibited at the expo, but our recent Bitesize profiles provide some examples: Tyche and Carpe Data.