Insurtech

What are Insurtechs?

Insurtechs are digital challengers and enablers, whose primary objective is transforming segments of the insurance value chain by leveraging the latest technologies, adopting new business models, and having customers at the forefront of their strategic and operational thinking. Examples include:

• Remote Claim Estimation. Taking a visual appraisal of the damage and accurately estimating repair costs, allowing insurers to reduce the claim cycle, lower cost per claim, enhanced customer satisfaction, and improved customer retention.
• Augmented Risk Assessment and Underwriting. Processing of alternative data (such as aerial imagery and data from sources such as sensors and wearables), real-time analytics, better risk selection of insurers, improved pricing capabilities, maximized book value, and improved profitability.
• Enhanced Customer Engagement. Creating and delivering personalized insurance policies, identifying specific customer cohorts, and enabling digital customer engagements by generating up-selling and cross-selling opportunities and improving retention rates.

The insurtech industry has gained ground and attention as additional incumbent insurance carriers and brokers chase newcomers in the use of artificial intelligence, the Internet of Things, advanced analytics, and other emerging technologies across every aspect of the industry’s value chain. The tens of billions of dollars that investors continue to pour into insurtech startups signals the industry’s move away from inflexible, established IT architecture—and toward a complete digital transformation.

How We Work with the Insurtech Industry

We help incumbent insurers, regulators, corporate builders, and corporate venue capital firms navigate the continuously developing insurtech ecosystem. Our global fintech platformm FinTech Control Tower, is a joint venture with Expand Research that draws on proprietary data tools, the latest market intelligence, and BCG’s fintech consulting services to help clients uncover opportunities and execute on their fintech agenda.

FinTech Control Tower by BCG is a joint venture with Expand Research that is aimed at offering a data-driven view of the global fintech ecosystem, exploring emerging trends, highlighting top players, and analyzing winning business models and the technologies that matter most in today’s insurance industry.

It provides market intelligence to facilitate the digital transformation of the insurance industry, leveraging three key assets:

1. A proprietary database covering some 27,000 technology companies, of which approximately 2,000 are insurtechs—mapped to a granular taxonomy, including 4 main product verticals and 20 subproduct verticals
2. An insights platform that allows subscribers to conduct their own research, trace funding transactions, analyze market trends, and access BCG’s research reports
3. The deep insurance expertise of our global network of insurance industry experts, who can provide customized research intelligence and growth strategies