Even though COVID is not gone yet, there are some noticeable post pandemic changes in the InsurTech industry. Most of us have worked from home for a significant amount of time and are now finding a balance between home office and being back at the physical office. As we have seen, a lot can change in two years. And one of biggest changes in the insurance world, is the view on insurance itself.

Because of the pandemic, there has been a switch in mindset. People have become more aware of the importance of (good) insurance. According to Technavio the increasing need for insurance across European countries due to rising natural hazards is notably driving the insurance technology market growth in Europe, although factors such as data privacy and security concerns may impede market growth.

Another noticeable difference is the climb in policy prices. People still want insurance, but when they pay more, they want more value for their money. Insurance “shopping” will become a new standard for most. In this day and age, it is necessarily to stand out of the crowd and not just by being the cheapest. New clients are not only looking at the price, but also at where their money goes to. One of the biggest values clients (and investors) look at, is the sustainability of the company. The Environmental, Social and Governance (ESG) elements must be reasonable and met. Clients and investors want to see genuine action and spot empty promises quicker than ever.

With more expensive policies, comes more responsibility. Therefore, it is important that the InsurTech industry starts implementing and optimizing Artificial Intelligence (AI) and Machine Learning (ML). If it is not already done, right now is the time to invest in technology. Advanced AI and ML can be used to help predict natural disasters. If not predicting it, it can help to be ready for such events. Having this type of technology is a major value point for insurers.

Deploying real time data is the future for the InsurTech industry, especially in smaller companies. Real time data and customer interaction are the building blocks for personalized insurance products. Embedded insurance makes a big difference in gaining and keeping clients. Afterall, it is their money and investment.