Data analytics providers and peer-to-peer (P2P) insurers will be the best performing InsurTech players in 2017, according to a Life Insurance International (LII) industry survey.
Two-thirds of respondents (66%) said data analytic providers would be the best performing InsurTech players in 2017, with the remainder opting for P2P players.
There were no votes cast for Blockchain technology and wearable technology providers.
The LII survey results comes after a majority of insurance professionals from across the world (30%) polled by Timetric’s Insurance Intelligence Center (IIC) said they expect social media to be the technology most utilised by the insurance industry over the next year.
The Internet of Things (IoT) relating to retail insurance and artificial intelligence came second and third respectively, in terms of the technologies expected to be most utilised by the insurance industry over the next year.
Blockchain technology and wearable technology ranked bottom in the IIC survey.
In terms of internal innovation, the Insurtech Disruption Trends 2017 report, published by Tällt Ventures, explains that the petri-dish style experimentation being conducted by millions of startups worldwide gives corporates a great eclectic understanding of what works and what doesn’t, and an often uncomfortably sudden view of tomorrow’s disruption.
The report names established insurance companies, including AXA, USAA, Zurich, Aegon and Allianz as providing genuine disruptive innovation in their field through successful innovation.
A timeline of recent corporate innovation in Insurance
Source for graphic above: The Insurtech Disruption Trends 2017 report, published by Tällt Ventures
Digital virtual assistant
The Tällt Ventures study notes that US-Based USAA won the Efma Innovation in Insurance 2016 award for their introduction of the Digital Virtual Assistant to their website.
The report explains: “The assistant, which provides a conversational-style communication channel, gives an engaging means of interaction at any time, using the modality (text/voice) of choice on mobile and web devices. USAA’s mobile-first approach has enabled it to establish a unified view of its customers, irrespective of whether they transact as a banking, insurance or other domain customer.”
Similarly, Tällt Ventures explains that AXA’s Kamet Ventures launched in late 2015 an Insurtech incubator dedicated to conceptualising, launching and accompanying disruptive products and services.
“Nurturing ideas from internal teams alongside external entrepreneurs, the incubator spits out proof of concepts and AXA owned startups,” says the Tällt Ventures study.
It adds that The Kamet incubator becomes another pillar in AXA’s Insurtech ecosystem, complementing the
existing investment arm and AXA Labs, the company’s San Francisco based trendspotting division.
Blockchain technology is another disruption technology that could well streamline paper work and reconciliations for (re-) insurance contracts and accelerate information and money flows, while greatly improving auditability.
In light of this, Aegon, Allianz, Munich Re, Swiss Re and Zurich have launched the Blockchain Insurance Industry Initiative B3i, which aims to explore the potential of distributed ledger technologies to better serve clients through faster, more convenient and secure services.
This initiative aims to facilitate the transition from individual company use cases to viable solutions across the entire insurance value chain. Such future development of a modern and efficient handling of insurance transactions will require common standards and procedures.
Speaking at the launch of the B3i initiative in October 2016, Harald Rosenberger, head of innovation at Munich Re, said: “Blockchain technology shows most of its potential only if it’s applied in a network of peers. Therefore we see a huge benefit for the insurance industry in doing this together in the Blockchain Insurance Industry Initiative B3i. With B3i we are in the position to explore and shape the future use of Blockchain and to set the necessary standards for a true digitalization of insurance.”