Industries are increasingly adopting digitization and insurance technology is no exception. Emerging insurance technology trends such as artificial intelligence (AI), the Internet of Things (IoT), and cloud computing are replacing legacy systems and improving workflows. These technologies are enabling secure and data-driven insurance services. Some of these include automated solutions for claims processing and fraud detection. Lastly, the industry is also leveraging technology to improve the customer experience.
Innovation Map outlines the Top 8 Insurance Technology Trends & 16 Promising Startups
For this in-depth research on the Top Insurance Technology Trends & Startups, we analyzed a sample of 1 412 global startups and scaleups. The result of this research is data-driven innovation intelligence that improves strategic decision-making by giving you an overview of emerging technologies & startups in the insurance technology industry. These insights are derived by working with our Big Data & Artificial Intelligence-powered StartUs Insights Discovery Platform, covering 2 500 000+ startups & scaleups globally. As the world’s largest resource for data on emerging companies, the SaaS platform enables you to identify relevant startups, emerging technologies & future industry trends quickly & exhaustively.
In the Innovation Map below, you get an overview of the Top 8 Insurance Technology Trends & Innovations that impact 1 400+ companies worldwide. Moreover, the Insurance Technology Innovation Map reveals 16 hand-picked startups, all working on emerging technologies that advance their field.
Top 8 Insurance Technology Trends
- Artificial Intelligence
- Blockchain
- Embedded Insurance
- Internet of Things (IoT)
- Cybersecurity
- Distributed Infrastructure
- Insurance Product Development
- Immersive Technologies
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Tree Map reveals the Impact of the Top 8 Insurance Technology Trends
Based on the Insurance Technology Innovation Map, the Tree Map below illustrates the impact of the Top 8 Insurance Technology Trends. AI is automating slow, manual processes in the insurance sector as well as reducing the scope for errors. Meanwhile, the use of blockchain and a focus on cybersecurity are introducing new layers of security, further demonstrating a focus on transparency and growing customer confidence in the industry. Immersive technologies are creating opportunities for remote collaborations and improving sales. Other trends such as insurance product development and embedded insurance are contributing to the wider adoption of insurance services.
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Global Startup Heat Map covers 1 412 Insurance Technology Startups & Scaleups
The Global Startup Heat Map below highlights the global distribution of the 1 412 exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals that Europe and the US see the most startup activity.
Below, you get to meet 16 out of these 1 412 promising startups & scaleups as well as the solutions they develop. These insurance technology startups are hand-picked based on criteria such as founding year, location, funding raised, and more. Depending on your specific needs, your top picks might look entirely different.
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Top 8 Insurance Technology Trends for 2023
1. Artificial Intelligence
The Insurtech industry is witnessing rapid adoption of AI and related technologies in recent years. Startups develop AI-based solutions to reduce manual-intensive tasks and errors. These tasks range from processing insurance claims to risk prediction. Additionally, the insurance industry generates huge amounts of data. Many scaleups and startups leverage AI to convert these data into insights that make InsurTech operations more efficient.
EvolutionIQ enables Claims Guidance
US-based startup EvolutionIQ builds a predictive claim guidance platform. It improves claims processing, assists in tracking team productivity, and detects fraud trends. With AI-based automation, it enables insurance examiner teams to increase their capacity to process claims and lower claims duration. This assists insurance companies to improve their services and, thereby, increase, customer satisfaction.
Bubble Insurance provides Personalized Insurance
US-based startup Bubble Insurance offers personalized, digital insurance services. It combines life insurance with homeowner insurance when users buy a house or refinance their mortgage. This enables homeowners and homebuyers to protect their families from unexpected events. Using AI, it finds the right coverage for home insurance and associated plans to fit the individual needs of customers.
2. Blockchain
The key reasons for the widespread adoption of blockchain technology are its security and transparency. For the insurance industry, it reduces administrative costs associated with handling insurance claims and verifying payments. Blockchain also enables quick data sharing and simultaneously offers protection against fraud. Additionally, cryptographic protection methods make the blockchain highly reliable for insurance data storage and transmission.
YAS offers Microinsurance
Hong Kong-based startup YAS offers on-demand microinsurance. It offers multiple insurance services for different end-users such as hikers, cyclists, runners, and car riders. All of these are low-cost insurance options to provide a sense of safety and security to commuters. All the sensitive customer data collected for insurance purposes is secured through the blockchain architecture on which YAS is built thereby further instilling a sense of confidence in customers that they and their data both are secure on the platform.
Ibisa provides Agricultural Insurance
Luxembourg-based startup Ibisa develops a global risk-sharing platform for agricultural insurance. The startup’s platform offers affordable and automated weather index micro insurance by leveraging earth observation and blockchain technology. This enables farmers and breeders to avail of next-generation insurance and builds the price resilience of their produce. In turn, this contributes to reducing poverty among farmers and improving food security.
3. Embedded Insurance
Embedded insurance bundles insurance with the transaction of a product or service at a point of sale. These bundles are either hard bundles where it is complementary like a warranty or soft bundles where the customer has a small increment but can opt-out. It is a growing trend within the insurance industry as it improves the affordability and accessibility of insurance services. Consequently, insurance companies are using this technology to increase their penetration in various markets and customer demographics.
WeCovr offers Insurance APIs
British startup WeCovr develops insurance APIs. These APIs support both mobile and web applications and allow online sellers to embed insurance into their product sales. This provides online stores with an additional source of revenue while making purchases secure for end-users.
Lisa Insurtech develops Insurance Gateway
US-based startup Lisa Insurtech is the developer of proprietary insurance gateway technology. Lisa Gateway is the core technology that is solving the interoperability problems between insurers, brokers, and startups. The gateway acts as an enabler through which insurance products can be embedded with different services and products such as business intelligence software, payment gateways, and more. Through their gateway, Lisa Insurtech promotes insurance as a service ecosystem.
4. Internet of Things
The Internet of Things (IoT) trend is speeding up digital transformation in the insurance industry. Customers expect results right away in today’s fast-paced business climate. This is why businesses from various sectors, including the insurance industry, are making efforts to enhance customer experience and loyalty by using digital means. IoT devices allow data to be collected and exchanged continuously across networks, thereby speeding up and optimizing the process of claims, minimizing data duplications, and reducing customer dissatisfaction. Customers no longer have to waste time going through paperwork, and rather now go through the process of collecting sensitive data directly from their devices and handling insurance claims more effectively.
My Risk Committee offers Enterprise Risk Management
French startup My Risk Committee provides IoT-enabled enterprise risk management solutions. The startup offers a cloud platform, My Risk io, that integrates with connected devices in an industrial setting for risk assessment and data-driven decision-making. It also features cloud analytics and integrates with existing systems. The platform enables continuous monitoring of industrial assets and assists in preventing risks to improve insurance underwriting accuracy
Benchmark Labs offers Asset Specific Weather Forecasting
US-based startup Benchmark Labs is the developer of a weather forecasting platform used to deliver asset-specific data for the agricultural sector. The startup’s platform offers machine learning-based forecasts for specific locations using publicly available information and real-time data from IoT sensors. The primary aim of the platform is to reduce the discrepancies between environmental data available between insurers and clients. This, in turn, assists insurers to develop parametric insurance models that trigger payouts using real-time data.
5. Cybersecurity
With the rising sophistication of cyberattacks, cybersecurity is emerging as a major trend in the insurance industry. The knowledge and tools required to prevent these attacks or losses are beyond the capability of most legacy insurance providers. Startups bridge this gap by offering cybersecurity solutions that safeguard the interests of both insurance companies and consumers. These solutions prevent different kinds of internet-based frauds as well as protect sensitive user data.
Nsure.ai offers Fraud Detection
Israeli startup Nsure.ai builds a fraud detection platform. The platform uses AI to accurately differentiate between real buyers and sellers from fraudulent ones. The platform features real-time anomaly detection to safeguard transactions. This way, Nsure.ai is enabling businesses to securely approve sales of higher-risk digital products.
Protos Labs enables Cyber Underwriting
Singaporean startup Protos Labs uses a threat-based approach to manage cyber risk for insurers. The startup’s risk quantification platform provides a cyber attack analysis report that indicates which threats insurance companies are most susceptible to. It uses predictive machine learning to non-intrusively assess the cyber resiliency of its clients. Protos Labs’ cyber underwriting approach enables insurers to make informed risk assessments and accurately calculate the risk exposure.
6. Distributed Infrastructure
The insurance industry around the globe has a significant technology adoption gap, with many core processes hampered by on-premise legacy technologies. As cloud technology matures, a shift of all core systems is helping insurance companies to quickly launch new products and create improved customer service. Cloud is also necessary for enabling the computational power that is needed to understand and make use of the large data sets generated by insurance companies. As the cloud ecosystem continues to develop, cloud-native insurance companies have begun to act as a connecting hub among customers, distributors, insurance, and healthcare providers.
Kooli connects Insurance Industry Actors
Portuguese startup Kooli is a Portuguese startup that offers a cloud-based insurance platform to connect businesses and insurance companies in a personalized fashion. Kooli combines multiple technologies on its cloud platform which includes AI, predictive analytics, and IoT with legacy technologies being used by their customers. This enables insurance companies to not be dependent on various complex systems and rather get access to a flexible platform that is able to handle all their processes. Kooli cloud also offers flexible API integrations, claims automation, fraud prevention, and data analytics features to further improve business operations and client experience for insurance companies.
Agiliux offers Insurance Digitization
Singaporean startup Agiliux provides a scalable SaaS platform for the insurance industry. Agiliux’s Cloud Insurance Software offers catered solutions for insurance providers, agents, and brokers. The platform acts as a core through which multiple tasks are performed by the users. It assists with policy management, claims management, and insurance product development by digitizing the workflow. The startup’s platform integrates with legacy systems and is customizable to the unique needs of the startup’s clients.
7. Insurance Product Development
Low-code development platforms are on the rise. They allow insurance providers to create policies and applications without the hassle of coding. This allows insurance providers to rapidly build and launch new products. Insurance products and applications utilize sensitive information and hence are subject to rigorous testing and quality assurance processes. Low code platforms reduce the risk of vulnerabilities as a result of their predefined architecture and help create functional products on the go.
Nuclicore offers a No-code Insurance Platform
German startup Nuclicore develops a no-code insurance platform. It enables insurance providers to develop new products in a short period of time without having to code. The platform also has features that are used to easily develop APIs of existing software of insurance providers which are then integrated on different platforms thereby improving their product integration. Nuclicore is also system agnostic and is compatible with the system or third-party solutions in use by the client.
Fize speeds up Insurance Policy Data Collection
US-based startup Fize builds a platform for instant insurance policy data collection. The startup’s platform offers services that bring together feature sets required to build websites and apps that use personal insurance data. This enables businesses and insurance providers to gather insurance data over a secure network. Moreover, ready-to-use code snippets enable rapid integrations of new features.
8. Immersive Technologies
The insurance industry deals with complex interlinked processes and numerous critical situations that arise unexpectedly. These complexities have resulted in the insurance industry adopting modern technologies of late to create a better customer experience and improve operations. Technologies that are set to play a key role in the modernization of the industry are virtual reality and augmented reality. These technologies enable remote, cost-effective risk assessments, claims damage assessments, and marketing.
Airborne offers AR-based Damage Assessment
Indian startup Airborne creates an Inspections-as-a-Service (IaaS) platform. It automates traditionally human-led inspection for exhaustive damage assessment in automotive, manufacturing, and insurance. The platform uses industry-specific deep learning algorithms and AR to perform damage assessments with detailed on-screen visualizations and create reports on defect metrics. This enables insurance companies to perform real-time three-dimensional visual assessments.
UprightVR enables Fall Risk Assessment
US-based startup UprightVR develops a virtual reality-based fall prevention solution. UprightVR’s balance assessment system is a combination of their VR headset technology and platform which are used in tandem to analyze patients and assess their risk of falling. This is done by simulating fall scenarios in the headset and then measuring 10 underlying causes of falls based on the patient’s performance. It then generates a risk report that highlights how likely they are to fall. This informs insurance claims purposes and also assists in keeping track of at-risk patients over time.
Discover all Insurance Technology Trends, Technologies & Startups
Emerging Insurtech trends are advancing a data-driven and customer-centric approach. Startups are advancing automation in the industry by removing manual processes with AI-driven solutions. The focus is also on growing the customer base with technologies that make insurance more accessible. Security is also a top concern, as insurance companies seek solutions that allow them to process documents fast while lowering the risk of fraud.
The Insurance Technology Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation and startup scouting process. Among others, cyber insurance, embedded insurance, and IoT will transform the sector as we know it today. Identifying new opportunities and emerging technologies to implement into your business goes a long way in gaining a competitive advantage. Get in touch to easily and exhaustively scout startups, technologies & trends that matter to you!
