For many consumers, the most memorable and defining experience within their insurance relationship is through claims management. The sale and service can be smooth sailing until it’s time to get a claim processed and paid without hiccups. Then, the spotlight shines on how effectively and quickly a claim can be resolved.
It’s no surprise then, that the InsurTech market has identified this opportunity and is targeting this aspect of the insurance value chain.
The Q2 report from Willis Towers Watson, Willis Re and CB Insights takes a look at this opportunity and highlights claims-focused innovation.
- Claims management can be the most powerful driver of customer satisfaction and retention
- Investors who focus on disruption through risk mitigation find the claims management arena a particularly attractive opportunity
- InsurTech revolution represents a change in underlying function from volatility management (paying claims) to risk mitigation (making losses smaller)
- InsurTech funding aimed at increasing claims management efficiencies rose to $985 million across 64 transactions in Q2
Blockchain Begins to Enter the Market
When AIG announced in June it had completed its first multinational insurance “smart contract” using blockchain technology, Risk Cooperative, a commercial insurance brokerage and consulting firm, was announcing to the industry it was partnering with blockchain tech firm Bitfury to make the same technology available to commercial insurance brokers. Big Change is here.
What We’re Reading
The Dying Art of Underwriting
The practice behind traditional underwriting transitions towards a science-based approach emphasizes the importance of customer experience, explains Karlyn Carnahan. As the “art” of underwriting becomes less important, customer experience becomes the differentiator.
Brokers Beware: Insurance Consortium Reveals Codex 1 Blockchain Prototype
Blockchain insurance consortium B3i has revealed new details about its blockchain smart contract prototype, including advancements that could eventually remove much of the administrative work done by all counterparties.
What XL Innovate Looks for in InsurTech Leadership
Tom Hutton, managing partner for XL Innovate, explains why incumbents play a key role in the convergence of insurance and technology. Additionally, XL Innovate finds that the most successful venture investments are those addressing business problems in the insurance sector.
Analytics Put Insurers in a Better Bosition to Assess Damage from Harvey
Predictive analytic tools allow residential and commercial property insurers to prepare ahead of time for major storms like Harvey by projecting the most probable outcomes for their business and policyholders. On the claims side, analytics enable insurers to respond to claims much faster and with a much greater degree of assurance.