Insuranceciooutlook

Insurtech had a phenomenal year, what is in store for 2022

Insurance CIO Outlook | Wednesday, May 25, 2022

Though insurance may not appear to be the most exciting area in Fintech, Insurtech had a great year and is in anticipation of what would happen in 2022.

FREMONT, CA: In the first three quarters of 2021, global VC investment in insurtech increased from USD1.8 billion in 2016 to USD10.5 billion. In 2021, VCs invested €2.7 billion in European insurtech firms, creating six unicorns, including Marshmallow, the UK's second Black-founded unicorn, and AI insurance startup Tractable. Investors are seeing cash signs in insurtech, which may not appear to be the most exciting area of fintech.

The process of filing an insurance claim can be very inconvenient for anyone. Bdeo is a Spanish insurtech company that has developed visual intelligence technologies to aid in the automation of the underwriting and claims management processes, particularly for property and vehicle insurance. Traditionally, policyholders had to wait for an assessor to come onsite and examine the damage, but Bdeo allows policyholders to gather evidence on their own through a self-guided process, reducing the time it takes to file a claim.

In the case of home disputes, the user submits information and images of property damage, which are subsequently loaded into Bdeo's platform. The CEO remarks that it allows them to identify insights such as the cause of the damage, lack of coverage in seconds and also to prioritize claims based on their severity. The precision of the algorithms, as well as their ability to provide actionable, automated, and reliable outputs to simplify and speed up decision making, are two key features that distinguish the company’s technology.

CEO of UK-based flexible motor insurance carrier Cuvva, is another insurtech founder who believes 2022 is the year of the AI. FloodFlash, based in the United Kingdom, pays out immediate flood claim payments if sensors are triggered by rising water, and insurtech Koala, based in France, compensates its clients for travel disruptions such as delayed flights, replacing the cumbersome claims process with an almost instantaneous digitized experience.

Personalisation is nothing new in the insurance industry; after all, charging premiums based on the amount of the risk being insured against is all it is about. However, a well-known lack of industry openness has resulted in a lack of trust in insurers.

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