Telematics and wearables helping companies better predict claim probability, as well as the inclusion and growth of premium comparison sites, has driven a surge in insurtech adoption, according to a study by consulting and advisory firm EY. Insurance has made huge gains, moving from being one of the least commonly used fintech services in 2015 to the second most popular in 2017, now standing at 24 percent, according to the most recent EY FinTech Adoption Index. Fintechs, particularly in the insurance space, have been very successful in building on what they do best – using technology in novel ways and having a laser-like focus on the customer, said Imran Gulamhuseinwala, EY Global fintech leader. If they haven’t already, traditional financial services companies need to urgently reassess their business models to ensure they are able to meet their customers’ rapidly changing needs. “Disruption is no longer just a risk – it is an undisputable reality,” said Gulamhuseinwala. Today’s stories Lloyd’s CEO Beale reveals new oversight strategy, market to shrink in 2017/2018 Cat losses cause US P&C sector profit drop 42.2% YOY in Q1 AXIS Insurance appoints Nance to lead US E&S property business D’Onofrio replaces Sillat as CEO of Ryan Specialty MGA German mobile bank expands into insurance Insurance industry warned the UK government on fire risk before Grenfell disaster Global reinsurers ask EU for mutual market access with Britain post-Brexit: Report Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox. EY, Insurance, Claims, Insurtech, EY FinTech Adoption Index, Imran Gulamhuseinwala
There has been significant growth in insurtech adoption, with it now being the second most popular fintech service at 24% usage this year, the recent EY FinTech Adoption Index has stated. In 2015 insurtech was the least often used of the fintech services. The report also said that insurance companies are looking to use blockchain technology for their own purposes. More traditional financial services companies should be looking at adapting their business models to better suit the needs of their customers, said EY Global fintech leader Imran Gulamhuseinwala, who believes "disruption is no longer just a risk – it is an indisputable reality".