InsurTech Fuels Focus on Underwriting Data and Analytics

December 10, 2019 - InsurTech—the blend of insurance and technology—represents the coalition of two very different worlds. One that is grounded in tradition and the other, which thrives on the future.

Insurers know that technology represents an inroad to meeting customers’ needs, while operating more efficiently and effectively. As a result, most are engaging with InsurTech start-ups—either to invest or leverage their technologies.

Insurance for all is one of the drivers influencing InsurTech investments in data and analytics, according to findings from a report sponsored by QBE and Village Capital— Impact InsurTech. The goal: respond more quickly to customers.

While a core responsibility of insurance companies has always been to accurately assess, price and underwrite risk, InsurTech start-ups are driving a seemingly endless array of solutions to help underwriters accomplish this more efficiently and effectively across the value chain. Increasingly, InsurTech is improving data collection and cleansing, verification, predictive modelling and pricing. InsurTech and related technologies are also shaping how nearly all incumbent insurers are investing in their data modeling1 (i.e. underwriting) capabilities to improve individualized risk assessment.

This evolution has resulted in the growth of hyper-specialized, just-in-time and parametric insurance products, which are triggered by a specific event.

These emerging formats of narrowly targeted products and services are reducing barriers to consumers accessing tailored risk reduction coverage. The shift is particularly important for customers such as small businesses, independent contractors and lower-income consumers. These products also cater to unique consumer needs where traditional insurance industries may have limited historical loss data.

You can read the full report, Impact InsurTech, here.

About Matt Zieger
Vice President and Head of US Ventures at Village Capital, Matt leads the team responsible for finding, training and supporting entrepreneurs in markets across the US. He’s particularly passionate about supporting entrepreneurs that come from communities underestimated by traditional investors.

About Josie Barnett
Josie Barnett is Foundation Manager at QBE North America. The QBE Foundation reflects QBE’s involvement, commitment and investment in the communities where it does business, and where its employees live and work.