AI and IoT Make Inroads Into Insurtech

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Recently, consulting agency Accenture’s London-based FinTech Lab published a report which investigates the insurtech scene and some of the investment that has been taking place around it. In the paper, more than 450 deals between 2014 and 2016 were analysed, resulting in the identification of a significant focus on technology such as IoT, AI and analytics claiming over half the deals in 2016 and over 70% of the total insurtech investment value, which amounted to US US$1.7bn worldwide.  

A spokesperson for Accenture said: “We’ve seen a rapid acceleration of investment into and deal activity around intelligent automation and IoT start-ups over the last 12 months. These technologies are primed to disrupt the industry in the years to come, so it’s fitting that we’ve established a dedicated insurtech stream as a key part of Accenture’s FinTech Innovation Lab in London.”

Like many other sectors, the insurance industry is utilising cutting-edge technologies, including AI and the IoT, to further goals of delivering services to customers who require the enhanced customisation and efficiency these options bring. By implementing these technologies, insurers are able to access increasing amounts of data for risk analysis and carry out assessments with greater accuracy and efficiency.

Despite being a new area, and with economic forecasts uncertain following the UK committing to leave the EU, the number of insurtech deals has more than doubled over the past few years, showing that companies trust in promising new technologies is sufficient to overcome the doubt of future prospects.

Accenture added: “The rise in insurtech is further evidence of the growing role that new technologies are playing in shaping innovation across financial services.  The next challenge for insurtech startups is the same as what the more mature fintechs are now facing – being able to translate that investment into growth and customer acquisition,”

The Accenture FinTech Innovation Lab in London works with global start-ups that seek to provide solutions in areas such as insurance, retail and investment banking. New technologies such as AI, IoT and blockchain are often the focus of start-ups looking to avoid human error and update outmoded systems used by many industries worldwide.

Read the report here