The following report was prepared and published by our sister platform SPEEDA—November 2022.

The term ‘InsurTech’ has been derived from the words ‘Insurance’ and ‘Technology’ and refers to making use of technology, along the existing insurance industry’s value chain to increase efficiency and exploit new areas. This includes the use of machine learning, data analytics and sensors to gather meaningful data pertaining to customer behavior, which traditional insurance companies, or ‘incumbents’ stand to benefit from. The benefits include efficient risk assessment cost reduction, topline growth, improved customer satisfaction and aid in development of new products and services.

While there have been multiple technologies affecting the development of InsurTech, a few have emerged at the forefront of the InsurTech landscape. This includes the development of applications such as machine learning and data analytics which are used to price premiums more accurately, optimise claims processing, sensors to collect real time, personalised data from policyholders, and chatbots to increase customer engagement. Other key technologies include the Internet of Things (IoT) and blockchain, which introduced the concept of ‘Smart Contracts’. Smart Contracts are transparent and data driven, blockchain based contracts that automatically pay out when certain preexisting conditions are met.

Notably, InsurTech solutions have been developed for all key areas of the insurance business model, starting from premium pricing, to the management of the claims process. This report mainly addresses the impact of InsurTech on underwriting, distribution and claims management.