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The role InsurTech plays in the Insurance market

25 Sep 2018

How will the rise of InsurTech change the way business is done?

For many leaders in insurance, three priorities are at the top of the list when it comes to preparing for the future: growing sales, increasing bottom-line profitability, and remaining competitive in an ever-changing market. However, that’s easier said than done. Employing more than 300,000 people, the UK insurance industry is one of the most competitive places in the world to practise insurance, with a host of regulations to consider, alongside hundreds of companies battling for business. 

If you don’t have the edge, it’s easy to fall behind. Therefore, firms are starting to turn to technology to streamline their offering and increase efficiency in the workplace.

Enter InsurTech. The insurance industry, which has traditionally been slow to innovate, is ripe for change, and a growing group of tech start-ups is trying to make that happen. Today, demand for InsurTech is mushrooming: the UK was recently touted as ‘Europe’s InsurTech capital’, with a 117% growth rate over the last two years, raising millions of pounds in investment every year.

But what’s behind the rise? We talked to InsurTech provider REG, which provides risk management software for brokers and agencies, and found some surprising insights on this rapidly growing industry.

A growing trend

Though there’s a tendency to see InsurTech companies as disruptors within the market, the reality is that many of them prefer to think of their role in the market as non-threatening. Instead, they’re enablers, helping companies to streamline their services. 

Though InsurTech has traditionally remained confined to helping sales and marketing via CRM and policy administration tools, new investors have spotted gaps in the market that need filling. Insurance is a very heavily regulated industry, and recent developments like GDPR, which places security and client permission first and foremost when it comes to handling data, have required insurance firms to significantly develop their internal processes in order to become more compliant. 

At the same time, a renewed interest in working more efficiently is also challenging insurance firms to up their game when it comes to the way they work and the software that they use. With many international firms still using spreadsheets to manage customer data and analyse trends, they run the risk of being left behind as newer, smarter methods come onto the market. 

Boosting efficiency

These InsurTech companies are now spearheading a change within the industry, educating firms on how to do business smarter, efficiently and more profitably. InsurTech gives you a platform where you can access live updates and real-time data on everything from customer details to the ways in which the market is trending, thereby reducing the burden on analysts, and reducing the possibility of human error. Now, a small team of analysts can do what would have taken many to do previously, working data that has already been collected- and possibly analysed- by an AI system to produce better results, faster. 

Similarly, RegTech has been taking off in popularity within the UK. The sector is predicted to grow by 48% a year over the next five years, and for good reason: the cloud-based solutions that RegTech companies offer enable insurance firms to remotely and securely store their data, whilst also creating a compliant platform on which these firms can do business. These systems automatically update to stay ahead of the latest changes in regulation and giving insurance professionals an agile, reliable and more efficient way to manage their data.

This software also has obvious benefits for the customer. With new regulatory technology, their data is more secure, and better maintained. At the same time, the new software that is available to firms up and down the country creates a faster, more efficient and ultimately more reliable service, which promises to reduce costs thanks to greatly reduced manual processes. 

Alongside these benefits, InsurTech firms have also made a concerted effort to tailor their services to suit the needs of the business in question. By working closely with their clients to better understand how the technology can be applied to solve problems and streamline the way they do business, these software companies can create tailored solutions that can simply be ‘switched on’ once the time is right and the right data has been imported. 

What does this mean for recruitment? 

Despite the rise of InsurTech, finding employees with a good grasp of technology, data skills and compliance-related issues will likely remain a priority on any employer’s wishlist. However, this new software also gives firms the opportunity to prepare for the future: after all, with real-time updates on everything from market trends to how individual departments are performing, management can determine where gaps in the business are, and which areas need higher levels of investment, development and staff. In a market where remaining ahead of the curve is essential when it comes to securing and retaining new business- especially in rapidly developing areas like cybercrime- this could make all the difference to staying competitive.

It’s time to innovate

The new wave of InsurTech start-ups see themselves as innovators and as investors, and they’re certainly changing the way in which insurance firms do business. Don’t get left behind: make the move to a company you can develop with, and browse our range of insurance jobs here.

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