What do you think was the most significant insurance-technology development of 2022?
“Automated underwriting made its mark across P&C and Life. We reached a tipping point, on the leverage of technology to automate more of the initial submissions, this was especially enabled by the expansion of ecosystems and more third-party data.”
What do you forecast to be the most impactful insurtech trend in 2023?
“AI.”
“AI is being used on the edges in areas such as fraud, but its use in claims and underwriting is still limited. We anticipate more use cases, especially in claims adjudications and underwriting. Insurers should be careful of not introducing bias in the models, and work to improve the trust in AI models. Also expect new regulations from state insurance commissioners around this. As noted in Deloitte Tech Trends 2023, “For more trusted AI, forward thinking enterprises are leaning on data transparency, algorithmic explainability, and AI reliability.’”
— Prashanth Ajjampur, Principal, Deloitte Consulting LLP
What do you think was the most significant insurance-technology development of 2022?
“AI solutions gained significant traction and began having a measurable impact on the industry. Machine learning for predictive models and RPA already were being deployed for many use cases by carriers of all sizes. In 2022, not only did those solutions increase their impact, but solutions based on natural language processing and computer vision also gained steam in live implementations.”
What do you forecast to be the most impactful insurtech trend in 2023?
“InsurTech MGAs will continue to expand their influence. The over 100 startup MGAs launched in the last several years will continue to grow, while new MGAs will carve out market niches. Many MGAs will be started by existing carriers for diversification and growth, while there will still be greenfield InsurTech MGAs addressing new or underserved market needs.”
— Mark Breading, Partner/Carrier Transformation, Strategy Meets Action
What do you think was the most significant insurance-technology development of 2022?
“The return of the agent! …Ok, they never went away. In fact, according to the Big I Agency Universe Study and Market Share Data released in 2022, the number of independent agents increased to the highest count in a decade, and the channel’s market share increased in both personal and commercial lines. Specific to insurance technology, it was noticeable how many companies recognized this trend and began really focusing on tools to help agencies drive efficiency through their organizations or mid-funnel processes. These tools aren’t quite as romantic, but several of them are really enabling agencies. It was quite a different tone than some of the rhetoric we heard not too long ago in which agencies and carriers were being targeted for disintermediation.”
What do you forecast to be the most impactful insurtech trend in 2023?
“A steadfast focus on value creation. Certainly, that refers to value as it relates to customer experience, enabling agency operations in alignment with their strategies, and value for carriers as they invest in their agency and customer capabilities. It also refers to newer tech firms and how they think through the economics of their business model as market conditions change, interest rates rise, reinsurance prices go up, etc. They also need to show returns for their investors. All this will put different pressures on agencies and carriers making investments. Winning tech firms will more deeply understand the economics of our industry, particularly with the significant number of agencies that are small or just getting started. Tools not only need to work across a number of agency/carrier dynamics, but they need to (show) ROI for the agency and carrier customer. I believe we’ll see more focus in this area through 2023 and beyond.”
— Chris Cline, Executive Director/Agents Council for Technology, Independent Insurance Agents and Brokers of America
What do you think was the most significant insurance-technology development of 2022?
“Artificial intelligence (AI) and machine learning (ML) enhanced the insurance industry in 2022. These technologies improved risk assessment, streamlined claims processing, and provided a better customer experience. ML algorithms analyzed large datasets and identified patterns and trends that helped insurance companies make more informed decisions about the risks they would take and enabled more accurate and personalized pricing models. As industry-specific AI/ML advances, its application will become increasingly widespread.”
What do you forecast to be the most impactful insurtech trend in 2023?
“2023’s most significant advancements will come from technologies similar to ChatGPT that blur the line between human and machine-generated content. We believe that large language models will enable rapid and engaging asynchronous quote and claim interactions across most lines of business.”
“Additionally, Insurance leaders spent the past five years on large-scale digital transformation yet failed to realize ROI from many of the point solutions they implemented. These tools — RPA, IDP, Conversational AI, and Workflow — continually increased technical debt and non-core overhead while also incurring significant operational disruption. The tools ultimately failed to solve the fundamental challenges insurance leaders faced — increasing margin pressure in the face of a global talent crisis and rising costs.”
“So, I expect to see continued consolidation of disparate, disintegrated automation and AI solutions into core industry tech or new turnkey offerings (Solutions as a Service). These applications target specific vertical use cases (e.g., Claims Management) rather than broad, horizontal plays (e.g., reading documents).”
— John Cottongim, Co-Founder & CTO, Roots Automation
What do you think was the most significant insurance-technology development of 2022?
“Embedded insurance was a major trend in 2022, allowing insurers to offer their products directly to customers or through partner organizations at key points in the customer journey. This approach opened opportunities to address the customers in their moment of need.”
What do you forecast to be the most impactful insurtech trend in 2023?
“My prediction for 2023 is we will see technology and software adoption that will massively reduce repetitive work and unlock productivity gains. In a nutshell, finding ways to do more with fewer people while still delivering the expertise, service and customer experience that our customers expect.”
— Joseph D’Souza, CEO and Founder, ProNavigator
What do you think was the most significant insurance-technology development of 2022?
“In 2022, digital connectivity was the most significant development in the industry. It influenced the entire roundtrip of insurance — from how agents prospected and marketed, quoted and submitted business (particularly commercial lines), and collected premium via digital payments — and created the needed connection points between carriers, agents and ultimately the end insured, all of whom demand more automation and instant access via technology more than ever. Digital connectivity saved countless hours and dollars and will continue to create more efficiency and value in the next year.”
What do you forecast to be the most impactful insurtech trend in 2023?
“We think data and business intelligence will have a big impact in 2023. The industry has talked about the ways to invest and use data for many years now. But the technology has advanced in a way to make access to it easier than ever, and the growing capabilities in insurance to use insights to drive decisions and actions is strong. The opportunity to advance core reporting, visualize all the rich data in agency and insurer systems, make more informed business decisions, establish new partnerships and more is huge. As a technology provider, we recognize our role in being a partner to provide access while protecting this data alongside our customers and the broader industry.”
— Anupam Gupta, Chief Product Officer, Applied Systems
What do you think was the most significant insurance-technology development of 2022?
“Collaboration to empower innovation was a major development in 2022. Empowered innovation improved experiences, drove speed to market, expanded ecosystems and sparked new embedded models to accommodate changes in buying patterns. Collaboration is seen among insurtechs, customers and employees that changes how technology can positively impact insurance experiences in the future. It fueled our industry’s resilience and charted a clear modernization path forward. From low-code to SaaS applications, to simplified integrations and beyond, collaboration across the insurance value chain gives carriers the power to execute their vision for customers. Insurtechs that know both technology and the business of insurance stand to benefit.”
What do you forecast to be the most impactful insurtech trend in 2023?
“The ability to help carriers ‘build as they go’ in the cloud will be critical in 2023. This includes the ability to leverage and harness data in the cloud, in combination with existing models, patterns and processes. Carriers all possess unique offerings and experiences that differentiate them in the market. Many have the vision, but need help executing. In efforts to modernize this journey, carriers have begun to test or deploy tools to improve the overall insurance experience (for both insureds and workers). This will continue in the cloud in 2023. The cloud gives carriers the ability to add capes as business needs dictate. Think of these as pieces that, when correctly arranged within the right architecture, deliver the desired result.”
— Jess Keeney, Chief Product Officer, Duck Creek Technologies
What do you think was the most significant insurance-technology development of 2022?
“‘Connectivity’ was a top InsurTech watch-word of 2022, especially in commercial lines. Commercial insurance accounts for almost half of all P&C premiums written in the U.S., but from tech standpoint, the consumer and agent experience for securing business insurance hasn’t kept up with personal lines. That really changed this past year with the mainstream availability of tools to automate rating and quoting for small commercial insurance. These solutions will continue to gain traction in 2023, because they are simplifying work for agents, giving carriers new opportunities, and providing more choice for consumers to get the coverage they need.”
What do you forecast to be the most impactful insurtech trend in 2023?
“More than a single solution or type of technology, we’re going to see the power of partnerships and integrations drive transformation. Rather than maintaining a competitive relationship, insurtech providers and incumbent carriers will truly embrace collaboration and integration. We’ve learned that one company cannot do it all, so we have turned our attention to finding better ways to combine forces to solve the industry’s challenges and provide a better experience for end users. As a result, more and more organizations will harness the power of APIs to integrate with partners and third parties, and we’ll see an increasingly connected industry in 2023.”
— Kelly Maheu, Vice President of Industry Solutions, Vertafore
What do you think was the most significant insurance-technology development of 2022?
“Connected Devices and Wearables: An increasing number of insurers and insurtechs have explored using connected devices and wearable technology to improve data collection and underwriting, along with Carriers giving credits on premiums.”
What do you forecast to be the most impactful insurtech trend in 2023?
“Automated Underwriting (AU): The adoption of automated underwriting will grow as insurers look to leverage data. AU is a process by which insurance companies use Artificial Intelligence to analyze customer data and make decisions about insurance coverage. This process will streamline the underwriting process and improve accuracy. AU will also use Artificial intelligence, Natural Language Processing and Machine Learning to automate processes, improve customer service, and reduce costs within the insurance industry.”
— Trace Meek, Chief Executive Officer, Fetch
What do you think was the most significant insurance-technology development of 2022?
“We have been starting to see the realities of the economic cycle and the hype curve lead to the inevitable beginnings of a ‘more discerning environment.’ Investors and buyers alike are applying their learnings of the past several years, and becoming more thoughtful about allocating resources among the many competing insurtech initiatives.”
What do you forecast to be the most impactful insurtech trend in 2023?
“I think we will see an increasing “flight to quality” as carriers become more sensitive to the differentiation between insurtechs that will have a lasting impact, and those that are unlikely to add value. Successful insurtechs in this environment have focused — and must continue to focus — on delivering compelling, demonstrable value in a consistent way across stakeholders.”
— Bill Pieroni, President & CEO, ACORD Solutions Group
What do you think was the most significant insurance-technology development of 2022?
“From the cyber insurance perspective, this year was a huge turning point in terms of a decrease in overall claims. And for Coalition, we believe that’s largely due to the growing employment of active monitoring and risk prevention so that policyholders are actually preventing attacks before they happen. So while this wasn’t an insurtech development in 2022, the approach (or way of thinking) had the most impact over the course of the year.”
What do you forecast to be the most impactful insurtech trend in 2023?
“1. The use of new technologies focused on data intake and automation will greatly impact how insurtechs are optimizing underwriting. Data collection and analysis enable insurtechs to develop a comprehensive understanding of their customers, distribution channels, and the market — simplifying underwriting and accelerating policy distribution.”
“2. Insurtechs’ response to the demand for interoperability and transparency will be another big area we need to keep an eye on. While some companies may need to reinvent themselves to improve their data usage and application, others, like Coalition, will only need to expand on their existing efforts. Insurtechs are already thinking about data usage and processing. Now, they just need to apply it to improving risk modeling.”
“3. The ways insurtechs can help close the insurance talent gap will be extremely important. The main challenge has been finding replacements for a rapidly retiring workforce. Insurtechs must focus on appealing to younger workers while reskilling their current employees. Insurtechs also need to focus on increasing automation, freeing employees from routine and laborious data-entry tasks to instead focus on higher-value human-driven activities.”
— Shawn Ram, Head of Insurance, Coalition
What do you think was the most significant insurance-technology development of 2022?
“While the property market will likely be the hardest ever, it will create opportunistic growth prospects for those companies with dry powder and the discipline to manage the volatility. Segments such as D&O will continue to see significant market softening. IPO and SPAC businesses have disappeared, causing competitive pressure in the remaining market.”
What do you forecast to be the most impactful insurtech trend in 2023?
“The impact of social inflation continues to be felt in many casualty lines, particularly as the courts continue to re-open. We also see an unprecedented hardening of the reinsurance markets across property and casualty lines, with ceding commissions down 2-4 points and perhaps the hardest property reinsurance market in history.”
— Jessica Snyder, President/U.S. Insurance, Argo Group
What do you think was the most significant insurance-technology development of 2022?
“Increased utilization of AI and predictive analytics across all lines of business and organizational functions (underwriting, claims, fraud, etc.).”
What do you forecast to be the most impactful insurtech trend in 2023?
“Continued expansion of embedded insurance distribution as a means to increase reach, reduce acquisition costs, improve conversion and LTV.”
— Daniel Turgel, Co-Founder, MindHome, Smartinsure and InsurTech Denver
People working in the insurance technology space may have felt like they were part of a waking dream during the last year as many digital tools that became de rigueur in 2022 were concepts and theories only a few years ago.
Now, technology has become so engrained in the insurance business that the idea of “digital transformation” has given way to pure innovation; speed, accuracy and efficiency rule the day.
PropertyCasualty360 recently reached out to several insurtech leaders to find out what they believe were the most significant developments of the past year, and where the insurance technology sector might be headed in 2023. The slideshow above illustrates a baker’s dozen of their responses.
See also:
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.