Market Trends of UK Insurtech Industry
This section covers the major market trends shaping the UK Insurtech Market according to our research experts:
INSURTECHS FOCUS ON ANALYTICS / BIG DATA and AI
The emerging wave of 'Insurtech' solutions companies are seeking to transform the business of insurance through the introduction of Big Data, Machine Learning, and AI capabilities. When insurance providers tap into the vast repositories of Big Data that is available to them and combine this data with machine learning and AI capabilities, they can develop new policies that can reach new audiences.
According to various studies AI platform revenues within insurance would grow by 23% to $3.4 billion between 2019 and 2024. Most traditional insurance companies don't use a lot of data to create their products. They rely on demographic information that is 40 years old, and older. They are struggling to price policies correctly and many will miss out on huge financial opportunities. insurance companies must evolve to adapt to changing customer demographics and preferences.
Digital transformation of the insurance industry accelerated during the Covid-19 pandemic, as a growing number of consumers turned to digital channels to shop for insurance solutions. This prompted leading insurers to invigorate their digital transformation initiatives. New Insurtech companies help traditional insurers price products more competitively, deliver products that consumers want, and improve the efficiency and convenience of the insurance purchase process for both the consumer and for the insurance agent.
UK Insurtech VC Funding
COVID-19 pandemic shifts InsurTech investment priorities. The growing success of UK insurtechs has been largely attributed to the creative ways they address customers' insurance needs in an increasingly digital economy, opening up new opportunities across the whole of the insurance value chain. Insurtech is thriving in the UK, having spun out of the Fintech revolution and UK Insurtechs are providing solutions across the whole insurance market. This is enabling insurers and carriers to deliver innovative products that challenge the status quo of the incumbents, in personal lines, commercial insurance and for specialist markets.
In response to the growing desire amongst both insurtechs and insurance firms to foster stronger partnerships with one another, they now explore how insurance firms and insurtechs can best work together to foster real relationships and drive higher levels of innovation across the industry.
