Even though insurers across the globe acknowledge the value of insurtech, very few actually adopt it. This is according to a survey by insurance fraud detection technology provider FRISS.
Insurtech adoption: valuable but not utilised
Of insurers polled in the Digital Transformation in Insurance Survey 2018, 88% were convinced that insurtech adoption offers great opportunities. Moreover, half were found working on insurtech apps or conducting experiments with the apps.
However, only 19% of insurers were found already investing in insurtech.
The study also revealed blockchain in an early development stage in the insurance sector, with only 2% found actually started with the technology.
Forty four percent of insurers did not have any idea about the uses of blockchain, while 21% were thinking of trying the technology.
Overall, 32% of insurers were found utilising technology to address fraud concerns, 48% were found using it to determine the level of premiums , while 45% were found using technology for underwriting.
Moreover, the study found adoption of online channels by insurers more difficult than anticipated. In addition, 69% of insurers currently have some form of online distribution. The figure marks a rise of only 4 percentage points since 2016.