As insurtech continues to gain steam around the world, the FinTech Innovation Lab highlights innovation in the United States.
Insurtech innovations are exploding across the globe right now. Last year, insurtechs attracted $4.4 billion of global investment, which is an increase of 98 percent from 2017 and an all-time high. This astonishing growth in investment has been matched by burgeoning geographic diversity. Once almost exclusively an American phenomenon, insurtechs are now found across the globe, with particular growth seen in Europe and the Asia-Pacific region.
Taking a big-picture perspective on insurtechs can be exhilarating. It can also make it tough to see some crucial details. That’s why in my last few blog posts I’ve been looking at notable insurtech innovations across different lines of business.
Today, I’m going to continue that trend, with a twist. Instead of focusing on different areas of the insurance industry, I’m going to focus on different geographic areas—actually, on one area in particular: the United States.
America has been the global insurtech hotspot for years. The most recent data, as I wrote a short while ago, reveals that this is beginning to shift—not as US-based companies slacken the pace, but as insurtechs boom across the rest of the world. Yet the US retains its lead—for now, at least—making it an important place to watch for insurtech observers around the globe.
I should mention that these insurtechs are all involved with the New York Fintech Innovation Lab, a mission-driven program run by the Partnership Fund for New York City and Accenture. The lab helps insurtechs speed up innovation by connecting them with the right executives at industry incumbents.
With all that said, here are five exciting, innovative companies involved with the New York Fintech Innovation Lab with offerings for incumbent insurers.
- Cyberwrite is at the forefront of cyber insurance. It makes it easy for industry professionals and business owners to benchmark the risk of a cyber attack on small- or medium-sized business and to calculate the financial impact the attack would have on the business. This allows business owners to purchase the right policy for them. Real-time and on-demand data of this kind has the potential to radically improve underwriting, risk management, and customer engagement.
- Theta Lake is developing another potential game-changer technology for regulated financial services and insurers. Its cloud-based communication compliance platform uses AI and deep learning to detect compliance risks in what was said, shared, and shown. This powers risk insights and workflow automation while also providing a secure, compliant archive for video, voice, and chat – all driving down the cost of compliance.
- Genus AI is also working on an intriguing option for insurers that are looking to improve the customer experience. Genus’ Enterprise AI platform is focused on deep consumer understanding and helps to engage with customers in an emotionally intelligent way.
- Cloudframe helps its customers transform legacy mainframe applications into cloud-native Java without adding undue risk to mission-critical data and business processes. This provides immediate cost savings and a pathway to cloud migration.
- HyperScience offers something of a holy grail to insurers of all stripes: automated data entry and document processing. It uses machine learning tech to extract machine-friendly data from documents of all shapes and sizes.
Each of these insurtechs is experimenting with tech that could grant insurers extraordinary new capabilities. As the latest Accenture Tech Vision for Insurance suggests, such innovations are likely to spark a change for the industry and completely reimagine what insurance is and what insurers can and should do.
It’s still not clear which of these new tools will be most consequential for the industry’s future, but there can be no doubt that most insurers have recognized their significance. The Tech Vision survey found that 93 percent of insurers are already experimenting with one or more “DARQ” technologies (that means distributed ledgers, AI, extended reality, and quantum computing).
Keep your eyes on this space for more coverage of the exciting world of insurtechs. In the mean time, you can visit my recent post, ‘The Top 10 Insurtech Deals of 2018.’
Or, if you’d like to continue the conversation about insurtechs and the broader insurance industry, I’d love to hear from you. My contact information can be found at the top and bottom of this page.