One of the oldest industries in the world, the insurance industry is also one of the largest with just over $5 trillion in premiums held globally. While the traditional insurance business model has proven to be resilient in the face of various industrial revolutions, the digital revolution currently underway may change that.
According to a PwC insuretech report (PDF), three in four insurance companies, some of which are up to 300 years old, believe that some part of their business is at risk of disruption. The report also found that the biggest challenge established insurance companies face from disruption are margin pressures and loss of market share to InsureTech startups.
Established insurance companies, while protected by massive balance sheets and legacy customers, are right to be concerned about the dual threat and opportunity posed by disruptive technologies in the InsureTech space. For instance, an Accenture report found that 86% of insurers believe that they must innovate at an increasingly rapid pace to maintain a competitive edge.
How and where to innovate, however, remains the biggest dilemma insurance companies face. In this article, we look at three key technological advances that are reshaping the insurance industry. These technologies represent a strong starting point for traditional insurance companies considering a digital transformation strategy.
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Silicon Valley Innovation Center understands the transformation the insurance industry is currently undergoing and helps corporations respond effectively by partnering with InsureTech startups in Silicon Valley. To find out more about how you can visit Silicon Valley and experience, first hand, the groundbreaking InsureTech innovations emerging in the area, click here or call us on +1 (650) 274-0214 to speak to an SVIC innovation tour specialist.