Looking Glass Report 2020
Section 3: Technology and Innovation
Insurance 2022 - the year ahead
Investment in technology will ramp up in the coming year, impacting every aspect of insurance companies’ operations, from internal processes to the products and solutions they deliver to customers.
The global COVID-19 pandemic accelerated the push to digitisation across the insurance sector. We anticipate continued investment in digital transformation across insurance operating models and the enhancement of customer experiences through digital and remote channels. And while traditional insurance players continue to explore new digital business models and technologies, we confidently predict that more start-up businesses will emerge to disrupt the sector in ways that force the rest of the industry to adapt.
The likes of digital-first UK car insurance provider Marshmallow, German start-up digital insurer Wefox and appraisal software company Tractable came to prominence in 2021 with significant funding rounds as investors saw value in their respective innovation. Tailored, personalised and flexible insurance offerings are likely to be particularly favoured in the uncertainty of the post-pandemic world and customers are rapidly becoming more discerning in their expectations of digital experience as much of their personal and professional life has moved online.
Other likely areas for disruption include: health and travel insurance, potentially linked to vaccine passports and more complex international travel requirements; products that protect against the impacts of the climate crisis – such as floods, natural disasters or weather events – where we are seeing increased use of machine learning, parametric insurance and smart contracts; and cyber insurance to support the need for increased digital protection as all industries undergo a similar transformation.