Anyone who says insurtech is an up-and-coming space hasn’t been paying close enough attention. The insurtech movement, which began around 2010, is long past its infancy and is both maturing and evolving. This is especially true in the P&C claims space, where companies are gaining traction and having a significant impact on their customers.
To gain greater insights into the claims space, SMA has been tracking over 175 P&C claims vendors in the North American market, comprising 75 insurtechs (startups initiated after 2010) and over 100 incumbents.
We are seeing several notable trends:
- Specialization is key: Three out of four companies among the 20 most successful insurtechs focus on one or two insurance segments (casualty/bodily injury, auto physical damage, workers’ comp and property).
- Companies are drilling down: While they may be focusing on one or two insurance segments, they are offering solutions in specific areas across the claims value chain.
- Partnerships are prioritized: The most successful insurtechs are partnering with key core system and data analytics providers. Securing these partnerships is often instrumental in boosting brand recognition and gaining market traction.
- Artificial intelligence (AI) reigns supreme: AI and machine learning are driving much of today’s claims innovation and are being applied in a multitude of ways. Many of the most successful insurtechs have AI as a central element of their solutions.
Lastly, there is no one-size-fits-all approach to a claims insurtech’s success. Funding amounts vary, as do types of partnerships and even go-to-market strategies. However, claims insurtechs at all stages must keep the problem they are solving in sight and the experience of their customer front and center at all times.