The Future of Insurance: Top Insurtech Trends for 2024

The Future of Insurance:Top Insurtech Trends for 2024

More than 85% of insurers are deploying CX initiatives throughout the customer journey, as the industry perspective shifts towards customer-centric business strategies. As per the policyholder’s POV, over 75% of customers expect companies to bring in innovative technologies to improve experiences, according to a report by Salesforce.

This blog delves into the top Insurtech trends for 2024 that insurers should look out for. We will also go over the current state and future predictions for the insurance industry, that will help insurers plan their digital transformation to suit the dynamic market needs. Read till the end to learn about the role of technology in staying ahead of customer expectations as insurers prepare for an exciting year ahead.

Future of Digital Insurance: What’s up ahead?

Future of Digital Insurance: What’s up ahead?

The industry is expecting turbulence on multiple fronts in 2024, caused by the rise in property and auto rates due to inflation, geopolitical imbalance, and increasing scrutiny of insurers' ESG regulatory compliance. As industries around the world prepare to tackle these challenges, it will not take long before its ripple effects reach insurers’ doorstep.

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“Insurance companies expect tough and volatile macroeconomic conditions will have a major impact on growth and margins in 2024.”
- Tammy Richardson, European Regional Leader,
Insurance Consulting and Technology at WTW (SRC)
Life at Neutrinos

Furthermore, according to a recent CIO survey by Gartner, 58% of insurance respondents reported increased digital innovation funding, sparked by the pandemic. This means the business automation trend catalyzed during the COVID-19 pandemic, will carry on as Insurtech trends in 2024 to help insurers boost business performance with the help of modern technologies that integrate seamlessly on top of their existing digital infrastructure.

8 Insurtech Trends Insurers Should
								Look Out For in 2024

8 Insurtech Trends Insurers Should Look Out For in 2024

As insurers prepare for the turbulent waves heading towards the industry in the coming year, technology emerges as the guiding sail to help insurers tackle the storms up ahead. As customer-centric business strategies shape the way insurers approach digital transformation to make data-driven decisions, insurance technology trends that enhance customer experiences will gain the most traction in 2024. Without any further ado, let us dive into the top Insurtech trends for 2024 that insurance providers should look out for!


Web-Embedded Insurance Sales

To simplify the complex process of policy coverage and benefits customization, insurers are looking towards web-embedded insurance sales. By embedding insurance products at the point of sale (POS), insurers can market their key offerings right at the time of purchase.

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“We can see that insurance and protection will go hand in hand with core business propositions.”
- Zina Wendlandt, Vice President Strategic Partnerships – Business Services,
EMEA, Cover Genius
Life at Neutrinos

It not only reduces the time to make a sale, but also maximizes the potential market for insurers and broadens their reach. Currently embedded insurance is already in practice for travel and auto insurance, but with the coming year insurers will move towards expanding the scope of their offerings with the help of web-embedded insurance sales.

Related Read: The Ultimate Guide to Insurance Distribution Management Software (2023)


NLP & AI-Powered Chatbots for Insurance

Another Insurtech trend redefining the way insurers engage with customers is Natural Language Processing (NLP) and Gen-AI-powered chatbots. While Gen-AI empowers customer interactions via swift and curated responses, NLP enriches the whole experience and offers insurers the opportunity to expand their reach to new horizons and market segments.

75% of users prefer using chatbots when looking for answers to simple questions, whereas 65% consumers feel comfortable handling an issue without a human agent. Therefore, AI-powered chatbots for insurance that are trained on insurance-specific queries, will be a key differentiator for the industry, when deployed with human-in-the-loop validation.

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“We’re already seeing the benefit of gen AI in various workstreams across the insurance ecosystem, and we see accelerated adoption of responsible and explainable applications in 2024.”
- Neil Spector, President, Underwriting Solutions, Verisk
Life at Neutrinos

AI-Driven Data Analytics and Decision Making

Talks about making the most of customer and business data to improve business decisions have been floating around for several years now. However, 2023 has been the year when we started seeing widespread implementation of technologies focused on data analytics and visualization. While businesses across multiple industries are venturing into the world of AI-driven data analytics, for the insurance industry, this trend is still in its infancy.

Due to its significant benefits for both the front and the back office, AI-driven data analytics is one of the major Insurtech predictions for 2024. Insurers are already prioritizing technology partners who offer integrations with legacy tech, to ensure that their invaluable customer data has a place in guiding the future of the business.


IoT and Telematics for Customer Data Capture

As the adoption of Wi-Fi-enabled devices and electric vehicles grows, insurers can gather data collected via IoT and telematic devices to improve underwriting decisions. Moreover, with real-time data coming in from multiple customer touchpoints and beyond, insurers can optimize their products and services to better align with the needs of the customer and offer personalized services.

According to Insurance Thought Leadership, the insurance telematics market is expected to grow from $5 Billion in 2023 to $11 Billion by 2028. Insurtech companies with solutions that can help insurance companies capture, integrate, and analyze the data from IoT and telematic devices, will be a top focus for auto insurance carriers, among others.


Hyper-Personalization of Insurance Value Chain

As users get accustomed to personalized experiences in all aspects of their lives, from grocery shopping to automobile purchases, the standard of consumer experiences is being raised at a magnificent pace. To keep up with this shift in customer expectations, insurers will need to implement mechanisms that support the rapid personalization of offerings to each customer based on their preferences.

With the help of Machine Learning (ML) algorithms and Gen-AI insurers can leverage technologies that enable hyper-personalization in real-time by analyzing customer behavior data to gather insights that can optimize insurance products to suit their needs.


Cyber-Security Risk Assessment Tools

Pattern recognition and predictive capabilities of AI are key points of interest for the insurance industry, as it can not only prevent fraudulent claims by analyzing historic user data but also assess potential risks during underwriting or while evaluating customer risk profiles.

As businesses across the world become more digitalized, the threat of cyber-attacks is also evolving such as data breaches and ransomware attacks, leading to a higher demand in cyber insurance. Insurtech providers with technologies that assess cyber security risks accurately will be in demand in 2024 and beyond. Solutions that leverage blockchain technology can support in ensuring transparency while streamlining the claims and payment processes for both insurers and customers.

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“The tools we use to predict and analyze these digital threats are improving, and more organizations are seriously strengthening their security defenses.”
- Joshua Motta, CEO and Co-Founder of Coalition
Life at Neutrinos

Automated Digital Document Processing Solutions

The insurance industry is still largely dependent on paper-based documentation for most of its workflows, be it insurance applications, underwriting, risk profiling, or claims. With a daily influx of bundles of documents, insurers are faced with a dire need to rapidly digitize their documentation processes, to improve the speed and efficiency of their services. Traditional paper-based documentation process requires manual data entry which is susceptible to human error and takes up a lot of the agent’s time.

Moreover, automated document processing allows insurers to cut down operational costs by freeing up resources and boosting workflow efficiency. Intelligent document processing solutions that enable insurers to reduce the number of document uploads by the user, while minimizing errors and improving data synchronicity, will be the most rapidly growing insurtech trend in 2024.


Low-Code Digital Infrastructure Transition

Insurers are shifting from a traditional in-house deployment to a cloud-based deployment approach for business applications, for lower cost of ownership and faster resolution of application change requests. Speaking of change requests, another significant transition that we have been noticing in the industry is the widespread adoption of low-code software development strategies.

Compared to its traditional counterpart a low-code software development approach allows insurers to be more involved in the application creation process, as it helps in bringing the world of business and tech together. With the help of low-code app development platforms, businesses can visualize user journeys in real-time and orchestrate workflows according to their specific needs, without waiting for a software developer to implement it.

A cloud & API based low-code infrastructure offers significant benefits for insurers who are looking to transform their digital infrastructure, by cutting down costs and accelerate deployment while ensuring efficiency, transparency, and real-time implementation.

What’s Next?

What’s Next?

The good news is despite the challenges the global insurance market is predicted to increase by approximately 10%. Insurers are looking to capitalize on the rising Insurtech trends for 2024 mentioned above to gain a competitive edge in the market. In addition to the trends we covered, there are a few other honorable mentions that deserve insurers’ attention such as, regulatory technology or Regtech, to cope with the rapidly changing regulations, technologies that enable accurate risk assessment as the demand for parametric insurance rises in 2024, and lastly collaborations between insurers and technology providers will surge in 2024 in an effort to accelerate innovation.

Why Neutrinos?

Whether it is a small API integration or engineering a complex enterprise-grade application, when it comes to implementing Insurtech trends insurers need rapid delivery and futureproof technologies to meet the ever-changing market needs. Insurers who are still dipping their toes into the endless sea of possibilities of digital insurance, need a reliable partner to support their transformation journey.

That’s where we come in! With our Full-Stack Low-Code Digital Innovation Platform, Neutrinos is helping insurers around the world reimagine business efficiencies. The Neutrinos Platform comes with an infinite capability canvas that lets you orchestrate digital user journeys in real-time and bring your digital vision to reality, in an end-to-end cloud-legacy-hybrid ecosystem.

With hundreds of pre-built insurance-specific accelerator blocks on the Neutrinos platform, insurers can seamlessly integrate modern capabilities such as Data Synchronization, AI-Driven Analytics, and insights, connected Claims processing, intelligent document processing and so much more.

With decades worth of experience under our belt, in both technology and insurance ecosystems, we are helping insurers around the globe transform the lives of their customers, with tech that is purpose-built for the insurance industry.

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