2023-08-31 19:03:23
The growing popularity of insurance technologies, known as “insurtech”, has been an impressive phenomenon in recent years. One of the main reasons behind the success of insurtech is the growing demand for digital insurance products as today’s consumers are looking for fast and convenient solutions that they can manage online.
According to the NTT DATA Insurtech Global Outlook 2023 study, the market experienced exponential growth from 2016 to 2021. This could be explained by the fact that insurtech companies are at the forefront of meeting this demand. They have adopted technology to offer a range of insurance products and services accessible through digital platforms, and the ease of online acquisition and management has attracted a new segment of customers seeking convenience and speed in their transactions.
Another factor driving insurtech growth is the rising cost of insurance. With prices on the rise, consumers are looking for more affordable options that don’t sacrifice quality and coverage. These companies have proven to be more efficient in their operation and distribution, which allows them to offer attractive products with more competitive premiums. This has generated greater competition in the market and has motivated traditional insurers to re-evaluate their business models and seek innovative solutions.
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The need for innovation in the insurance sector has been a determining factor in the rise of these business models. The insurance industry has historically been perceived as conservative and resistant to change. However, insurtech startups have challenged this notion and are leading the way in terms of innovation. They are developing customer-focused products and services that use technology to improve efficiency and the user experience. This innovative mindset has inspired traditional insurers to collaborate with insurtech startups to leverage their expertise and take new approaches to the market.
On the other hand, the rise of artificial intelligence (AI) is transforming the way insurance is written and managed, automating tasks, improving the accuracy of risk calculations and personalizing offers for clients. The power of big data has also been a powerful tool for these companies, allowing them to collect and analyze vast amounts of information about customers and risks. This data-derived intelligence translates into a greater understanding of customer behavior and better personalization of products and services.
Mobility has become an integral part of our lives and mobile apps offer a quick and easy way to access insurance services anytime, anywhere. These organizations are capitalizing on this trend, providing customers with a hassle-free experience to shop for policies, manage their insurance, and file claims, all with just a few taps on their device screen.
The explosive growth of insurtech is changing the face of the insurance industry. Traditional companies face the dilemma of adapting to this new reality or being left behind in an ever-changing world. Technological innovation, service personalization and agility in customer service are crucial elements for success in this new environment. The future of the insurance industry looks bright, and insurtech companies are playing a crucial role in shaping that future.
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Contact:
Mario Chao, CEO of NTT Data Mexico
The opinions expressed are the sole responsibility of their authors and are completely independent of the position and editorial line of Forbes Mexico.
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