How Insurtech is Disrupting Traditional Insurance Models: Trends to Watch – Global Trade Magazine
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Global Trade Daily November 22nd, 2024|Written by
Mohit Shama[shareaholic app=”share_buttons” id=”13106399″]Insuretech has been experiencing a turbulence of new technologies entering the market. Today, the worldwide Insurtech market is anticipated to reach a CAGR of 52.7% till 2030, marking this shift as a digital transformation. It is a way for insurers to innovate new products and ensure seamless customer communication. Why? Because new trend of customer expectations are rising at an unprecedented rate. Today, 74% of insurance customers want to interact via digital means, as found in recent studies. Read also: Increasing Insurance Risks for Marine Shipping At the same time, firms that are already using technologies such as Artificial Intelligence, Internet of Things or Robotic Process Automation within insurance services suggest that the costs of processing claims and underwriting experience has reduced to 30-50%, indicating the potential for change. This blog is an overview of the prominent trends in Insurtech for transforming the insurance sector:Five Insurance Technological Advances in 2025The insurance industry has long been a pillar of economic progress and growth, and today, technology remains the key enabler center for this growth and enhanced business development. So, let’s move to the major insurtech trends of 2025 and analyze how they fit into the requirements of insurers and the practices they implement.1. New Era of Risk Management with Predictive AnalyticsRisk management is undergoing a significant change thanks to the advances in predictive analytics, which are allowing insurers to make better decisions and improve customer satisfaction related to claims handling. It is genuinely revolutionary as it relies on massive amounts of information, precisely the strength of insurance companies – predicting risk levels with high accuracy. For instance, some of the top insurance firms have been digitally collecting more than 1500 variables for algorithmic analysis as it provides accurate risk assessment compared to traditional methods. This allows insurers to minimize their risk and offer their products with the greatest accuracy. By using advanced analytical tools, insurers can identify possible risks in advance, contributing to better underwriting processes and making claims handling more flexible. It is not only a way to enhance the capabilities of organizational members but also a tool that increases customer confidence due to the transparency of the actions taken.2. Automated Underwriting and Accurate Risk PredictionWith AI-based predictive models, insurers can assess massive amounts of data quickly, facilitating the underwriting process. Predictive analytics organize large historical datasets on claimants, and through pattern mat