2021 was a busy year for insurers. Beyond supporting customers through an ongoing global health crisis, they’ve also faced increased competition from a growing number of insurtechs and pressure from customers to deliver a seamless, digital-first experience—all in addition to ensuring the overall customer experience is positive. All of these changes in the industry call for insurers to be more agile and open to change and innovation. 2022 is sure to continue to disrupt the status quo.
Insurance companies—like companies in many other industries—are under increasing pressure to adopt ESG-friendly practices. The COVID-19 pandemic, a growing spotlight on climate change, and emerging social movements have all given rise to more socially and environmentally responsible consumers.
Insurtech funding hit a record high of $7.4 billion in the first half of 2021—already surpassing funding in 2020. With more and more emerging players entering the field, consumer demands for a more digital, connected insurance experience have grown to new heights. For many insurance customers, the claims process is a critical moment of truth, making it essential that insurers deliver a hassle-free, seamless experience.
As insurtechs and tech giants continue to disrupt the market, traditional insurers are under increasing pressure to modernize and keep pace with customers’ digital expectations. This trend shows no signs of slowing down. In fact, global insurtech investment reached a record $7.1 billion in 2020, with overall funding up 12% from 2019, according to Willis Towers Watson. It seems like everywhere you look there’s new technology promising to solve business challenges or inefficiencies.
Consumer demand for a digital, connected insurance experience is on the rise. But with disparate legacy systems in place that make it difficult to share data and make informed, real-time decisions, insurance companies are finding themselves in need of new technology to streamline their customer journey.
Climate change is a challenge for insurers in some obvious ways, such as stronger and more frequent natural disasters. Yet there are also more subtle risks to monitor, including changes to insured assets, risks, and exposures. Climate impacts the production quality and quantity of insured consumable goods, their location, and their supply chains.