Digital Lifescapes

With the Fintech market gaining momentum across the globe, other markets -- such as Insurtech -- are now being examined to assess the disruptive potential of digital business technology. Regulatory compliance is one such area where IT innovation can transform the sector. More than $340 billion in fines have been imposed on financial institutions in the decade since the financial crisis -- one report estimates that the total is likely to top $400 billion by 2020. Increasing requirements for transparency and growing scrutiny of ethical practices means that the cost of regulatory compliance will surely increase. With an average of 10-15 percent of employee staff dedicated to compliance, banks and insurers are spending more each year to comply with government-imposed regulatory obligations. One solution to this growing challenge is better automation. Robotic Process Automation Market Development According to the latest market study by Juniper Research , insurers will spend $634 mil...

Historically, the traditional insurance sector has been reluctant to change established methods. However, the relationship between insurance companies and technology vendors has evolved, as emerging Insurtech offerings disrupt the legacy insurer business model. The overall insurance market is experiencing significant upheaval, as new technology-enabled solutions impact the prior status quo. As an example, the use of price comparison websites is commonplace and other forms of customer-facing online services are widespread. However, the internal processes of loss notification, claims management and underwriting have not changed much from those used by insurers many decades ago. Therefore, savvy Insurtech vendors can help to revolutionize outmoded methods and introduce new ideas to the insurance marketplace. Insurtech Market Development That said, traditional insurers are now becoming increasingly involved within the Insurtech space, through direct investments and strategic partne...

The legacy insurance sector has experienced disruptive pressures from new technologies, start-up Insurtech competitors and changing customer demands. Within this environment, organic growth hasn't provided business transformation. Thus, insurance companies have relied on mergers and acquisitions (M&A) to leapfrog traditional competitors. That said, the number of M&As in the industry has grown by 1,096 percent since 1985, and 128 percent in the past 10 years. However, business technology innovation and IT-enabled automation will likely drive the majority of new growth via digital transformation strategies. Insurtech Automation Market Development  Robotic Process Automation (RPA) is a software solution which is designed to complete activities originally performed by humans. RPA is the future of most repetitive tasks that do not require cognitive capabilities, allowing employees to focus on things that deliver greater value. Moreover, RPA has proved to be much more a...

The drivers of fintech adoption in the developed world are different to those of the developing world. The last financial crisis resulted in a mistrust of legacy financial institutions, which has fueled the growing consumer appetite for products and services from innovative new providers. Fintech platform revenues derived from supporting the insurance industry (Insurtech) will reach almost $235 billion globally by 2021, that's up by 34 percent y-o-y from an estimated $175 billion this year, according to the latest market study by Juniper Research. Growth will be driven by a combination of factors, including: Machine Learning investments enabling insurance providers to personalise products; Insurers deploying mobile apps to improve their customer experience; Investments in blockchain technologies to underpin smart contracts. Fintech Market Development Trends The new worldwide market study uncovered that the value chain within the insurance market is transforming r...

Legacy insurance sector CIOs must embrace the innovation and disruption potential of technology start-ups to complement their own digital insurance strategies, according to the latest worldwide market study by Gartner. Sixty-four percent of the world's 25 largest insurance companies have already invested directly or indirectly -- via their venture capital arms -- in what Gartner refers to as the emerging Insurtech start-up market. Gartner predicts that 80 percent of life, property and casualty insurers globally will partner with or acquire Insurtech companies by the end of 2018. Analysts believe that these pioneers can stimulate or accelerate innovation among incumbent industry players, and complement existing digital transformation strategies. Insuretech Market Development Opportunities "Gartner has seen growing interest among insurance business and IT leaders in collaborating with Insurtechs or making them part of their overall innovation policies, but most insurance...