BASINGSTOKE, England, December 12, 2016 /PRNewswire/ --
Bespoke insurance will become business as normal
New findings from Juniper Research forecast that fintech platform revenues derived from supporting the insurance industry will reach almost $235 billion globally by 2021, up 34% y-o-y from an estimated $175 billion this year. The leading analyst house claimed that growth would be driven by a combination of factors including:
- Machine Learning investments enabling insurance providers to personalise products;
- Insurers deploying mobile apps to improve their customer experience;
- Investments in blockchain technologies to underpin smart contracts.
Transforming the Insurance Market
The new study, Fintech Futures: Market Disruption, Leading Innovators & Emerging Opportunities 2016-2021, argued that the value chain in the insurance market is transforming rapidly. This will force traditional providers to improve their offerings and customer service to fend off the threat posed by fintech suppliers, particularly in the car insurance sector.
According to the research, investments in machine learning have enabled providers of car insurance to more accurately reflect car usage and driving behaviour in their quotes. As machine learning improves insurers' ability to stratify drivers into risk groups, Juniper believes that the technology will be used more widely in the insurance market to deliver quotes for contents insurance precisely reflecting the value of applicants' possessions.
Juniper also predicts that blockchain will accelerate insurers' ability to personalise products with smart contracts/ smart policies adapting automatically to customers' changing circumstances.
Prudent Insurers will invest in Information Governance
However, the research cautioned that while telematics is an innovative means of collecting risk assessment data, many consumers may regard the sharing of information on their driving habits and destinations as intrusive.
According to research author, Michael Larner: "Insurers need to be transparent with regards to how they use customer data. While consumers need to accept that in order to receive tailored polices that they will come under greater scrutiny. The prospect of saving money will be the overriding priority for the majority of consumers".
The whitepaper, Fintech ~ Liberation or Liability, is available to download from the Juniper's website together with further details of the new research.
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.
For further details please contact Sam Smith, Press Relations