The insurance industry has not innovated greatly in the past decades but evolution is near. This new report by Thomvest says the core challenge insurers now face is to implement new technologies into their core systems. Next to this, they also feel the need to diversify their product offerings and notice an increase in competition. All this together leads an increased awareness of IT, with 68% of insurers raising their IT budget. The majority of those new funds are used for system integration and data security.
Startups and the insurance industry
Innovative startups are a source of this new competition and a major area their are active in is auto insurance. An area which is expected to change massively in the coming decades with self driving cars, telematics and the sharing economy rising to new standards. But it is not the only developing area. Home insurance is about to change due to the use of connected devices and drones and health insurance will probably innovate thanks to telemedicine and medical wearables. Interested in the full impact innovation has? Read the report here.
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