Digitization in the Insurance Industry

Written By: Allyson Marcus

A shift toward digitization in the insurance industry has been building for years.

One of the driving factors has been a change in customer behaviors, mostly connected to the benefits and opportunities of technology. These days, customers expect most things to be instantaneous – whether it is shopping, groceries or even their insurance needs. For the insurance industry, the growth to meet these changing needs has been slow but mighty.

Insurers balance the adherence to rigorous regulations with the fast-paced shift in customer demands. Its successes in change can often be linked to the innovation and opportunities brought on by insurtechs. The sheer growth of insurtechs in recent years is a telltale sign of the industry’s commitment to change. The global insurtech market revenue was valued at $5.48 billion in 2019, and it is expected to reach $10.14 billion by 2025, according to a recent industry report.

Innovative solutions backed by advanced technology are rising to the challenge, providing quick and efficient communication, payment and customer service. For insurers, now is not the time to back down. It is time for insurers to continue embracing insurtech innovation and make big shifts in the way they operate. Strong expectations from customers will only increase, requiring more service and more real-time interactions. Insurtech is becoming more than just a boost in technology and a significant disruption to an industry. Insurtech is becoming a chance for brands to differentiate themselves and increase customer engagement.

 

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