The insurance trend 2023

The insurance industry will be disrupted by technological innovation by 2023, according to new insights
As we move towards 2023, the global insurance industry will undergo dramatic changes as technology and financial markets continue to evolve, but remain volatile. Established and emerging insurtech companies will be impacted by a range of factors changing the environment, according to research conducted by EIS, a global insurance industry core technology provider.

Rory Yates, senior vice president of global corporate strategy at EIS, described the next year as a continuation of digital transformation. “Digital transformation will remain a key focus for ambitious insurers in 2023 as the industry faces numerous obstacles. Sustainability, fairness and transparency will continue to drive innovation and growth,” he said. Automation will enable employee-centric transformation, freeing up human resources to focus on customers. While continued competition within and outside the industry will lead insurers to move from competitive pricing strategies to value-driven metrics. ”

No 1: Underwriting will be converted

Underwriting has been the largest area of transformation in insurance, a trend that looks set to continue through 2023 and beyond. New technologies are driving fully automated or data-driven procedures to streamline processes. Slow underwriting processes are holding back life insurers from a modern, fast and self-service customer/agent experience.

No 2: Insurtech data sources will continue to grow

The potential for better data sources and risk assessment continues as the Internet of Things expands and metropolitan areas use increasingly smart ways to augment existing infrastructure. In health and life insurance, wearable technology and incentive programs designed to promote health and lower premiums will continue to streamline as real-time data improves, insurance costs rise and provide greater insight.

No 3: Increase Insurtech Distribution

As the insurtech maturity cycle continues, underequipped insurers will lose market share or adopt high-cost point solutions to access and manage new channels, Yates said. This will lead to huge growth in the industry as fewer technical candidates drop out of the fray or embrace new ways of doing business.

No 4: The insurance business ecosystem will increase competition

The digital ecosystem is enabling more competition, with more ‘technology-driven’ insurers outperforming. The adoption of core technologies will change, providing space for more nimble competitors to adapt and develop new business models to outperform them.

No 5: Consumers will demand more flexibility from their insurance providers

As we move towards 2023, regulators are responding to the need for fairer action from insurers by demanding that in the digital age, customers demand more information, clarity about their coverage, and the ability to make choices with them Suppliers have fewer barriers. “This shift can create a ‘CX Pioneers Win’ model—especially for those who view it as an opportunity rather than an obligation,” Yates said.

No 6: New insurtech will continue to disrupt the market

As more InsurTechs enter the insurance industry, there will be pressure on incumbents to form partnerships within the digital ecosystem. This will allow them to provide expansion opportunities for new innovators while solving their own innovation and technology challenges.

No 7: Comprehensive insurance will drive new growth

New services like Integrated Insurance (an estimated market potential of $3.7 trillion) and new ways to acquire customers and mitigate risk have similar potential. self and EIS would say “help redefine insurance and its role in people’s lives”.

No 8: ESG will become central to insurer leaders

The race to reduce carbon emissions and achieve net-zero emissions will be at the heart of investment in the insurance industry. This will be supported by data-driven sustainability and increased risk tolerance. The rise of ESG will introduce new regulations to combat greenwashing while addressing and creating a clear path for a more sustainable industry.

No 9: Insurance Process Automation Will Continue

Automated technologies (RPA, machine learning, low-code/no-code), analytics (artificial intelligence, predictive analytics) and connected insurance (Internet of Things, usage-based) will be built in 2023 and peak in 2024, leading to insurable There are more and more product targets, better service, and increased customer loyalty.

No 10: Insurtechs will not fall victim to economic stability

Despite the cost of living crisis, insurance will continue to be seen as an essential product. While consumers will cut back on other spending, home, auto and health insurance is essential and will continue to be a steady source of investment income.