Bermuda Insurtech Attracted $14 Bln of Investments
RegulationBit News Today1 min read
Research from Aon indicates that over 550 insurtech startups have collectively raised around $14 billion, with established insurers supplying a portion of that capital. Pressure is rising on insurers to innovate as investors spot opportunities to disrupt the more than $5 trillion global insurance marketplace. Aon believes the fast-growing entrepreneurial insurtech segment could offer more support to insurers than previously anticipated, through what the firm terms “open architecture innovation.”
An Accenture study revealed that four in ten consumers are dissatisfied with their current insurance and open to changing providers. B2C insurance marketplaces and B2B digital brokers are emerging as alternatives, offering online or mobile applications that provide a single point of contact for customers to get multiple insurance quotes. Thanks to funding from multiple insurers, Neos offers a policy designed to stay relevant to customers rather than being ignored until a claim is filed.
Startups are also deploying advanced technology like AI, imagery, and drones. Lemonade uses chatbots to replace lengthy forms, while Airware is exploring drones to support insurance underwriting and claims activities. Orbital Insights applies satellite imagery to retail, agriculture, and property insurance. Firms like Pypestream, which utilize chatbots and natural language processing to streamline call center operations, are starting to bring these tools to insurance.
