Insurtech Radar 2021 reveals a promising future for the insurance industry, with insurtechs leading the way in innovation. The report shows insurtechs have secured $7 billion in funding over the past year, despite the global pandemic. This figure indicates an impressive 1.7 times growth in comparison to 2020.
Insurtechs are primarily focusing on distribution, with 57% of all insurtechs falling into this category. These companies are redefining the customer journey, offering personalised insurance products that are easy to understand and purchase. However, they face stiff competition from established insurers who are also investing in digital capabilities.
Product and process innovation is the second area of focus, with 35% of insurtechs operating in this space. These companies are utilising technology to streamline processes and create new insurance products. They are particularly active in the health and life insurance sectors.
Risk carriers, which make up 8% of insurtechs, are also making significant strides. They are rethinking traditional insurance models and creating new ones that are more efficient and customer-centric.
The report concludes that insurtechs are driving the future of insurance. Established insurers need to adapt quickly to stay relevant in this rapidly evolving landscape.
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