Transforma logo

Insurtech

 

Digital Transformation Potential in Insurtech

The Insurance sector is amongst the most susceptible to digital transformation-enabled change of all industries. At the core of insurance is the concept of risk-transfer (from an insured party to an insurance carrier), and the availability of more high-quality information about a risk, and enhanced analysis of that information, can result in more accurate pricing and a more efficient market overall. Concepts such as IoT allow insurance offerings to be extended to support new propositions (such as insurance for servitised assets) and enhance services in already-established markets (with, for instance, usage-based insurance and new types of parametric insurance). Artificial Intelligence can play a significant role both in automating processes (for instance claims processing), and also in terms of assessing risks at a level of granularity that might not have been feasible before.

Nine key domains of change in Insurtech

Overall, we have identified nine key domains of change in the Insurtech sector that are enabled by digital transformation, as illustrated below.

Insurtech_DC.png

These domains of change are discussed in more detail in our report Digital Transformation in the Insurance Sector:

DX in Insurance.png

The domains of change discussed in the report comprise:

  • Claims Automation considers the digital transformation of claims processing using a range of technologies.
  • Associated Services considers the augmentation of a core insurance offering with associated services such as connected monitoring devices or monitoring services, potentially in association with a channel partner.
  • Parametric Insurance addresses an emerging type of insurance that offers pre-defined pay-outs based on trigger events, rather than the more traditional approach which is to compensate for actual losses.
  • Usage-Based (Automotive) Insurance tracks driving behaviour via telematics devices installed in the insured vehicle and potentially rewards users with a subsidised premium, based on their driving behaviour.
  • Improved Front Office Operations which has been a focus of the insurance industry for many years and has now evolved to use AI (and RPA) to improve operations.
  • Improved Analytics including the analysis of better information and improved analyses applied to available information.
  • Servitised Asset Insurance covers a range of opportunities related to servitised assets, including policies covering repairs for those assets, and also insurance for consequential losses in the case that servitised assets malfunction.
  • Supply Chain Insurance considers opportunities related to insurance services for ‘connected’ supply chains and also related risk-management services.
  • Smart Contracts exist to ease the contracting process between an entity requiring insurance and an insurance carrier.

Collectively, the activities listed above will bring significant changes to the Insurtech sector.

IoT and Insurtech

IoT is one of the key technology groups impacting the Insurtech sector and further detail and analysis of key IoT applications for the Insurtech sector can be found in Transforma Insight’s Forecast Insight Reports. Some of these applications are directly relevant to the sector, whilst others are only indirectly related.

Directly related IoT applications and Forecast Insight Reports include:

  • Usage-Based Insurance – This Application Group covers onboard devices, or software hosted on a Vehicle Head Unit, used to monitor vehicle usage and driver behaviour to provide a more accurate or reduced insurance premium. In some cases, drivers are provided with instruction through smartphone-based apps to improve their driving. Instances where an application is hosted on a Vehicle Head Unit do not count as a separate connection. However, these instances are counted within the revenue-generating unit (RGU) forecasts.
  • CCTV – Connected video cameras used by governments for monitoring of streets and public places.
  • eCall – Emergency notification from a vehicle in the event of an accident. This application can be supported using the connection provided by the vehicle head unit, or a dedicated device in the vehicle. Includes emergency calling under regulatory mandates such as ERA-GLONASS and eCall in addition to manufacturer provided services.
  • Loss Prevention – Includes anti-theft solutions based on boundary control in retail contexts, and also goods location monitoring for specific goods in a retail context.
  • Stolen Vehicle Recovery – Vehicle tracking to warn of break-ins, prevent theft or facilitate vehicle recovery in the event of theft. In more sophisticated systems it may be possible to sound alarms or shut down vehicle functions. This application includes aftermarket devices placed in the vehicle in addition to software making use of the vehicle head unit’s connections.
  • Security Tracking – Includes a range of security-related applications such as for security guards, prison guards, and also offender tagging. Also includes ‘smart soldier’ equipment used by defence personnel in a military context.
  • Asset Monitoring – This application group encompasses a variety of assets that are suitable for remote monitoring. This includes the monitoring of livestock and associated applications such as automated feeders. It also covers the monitoring of fitness equipment located in gyms and other shared contexts. Tracking and monitoring of equipment in ambulances is also incorporated as part of the healthcare vertical. Furthermore, this Application Group includes connected video gaming machines, gambling machines and other devices such as pachinko machines. Monitoring the condition, availability, and use of assets important to public health such as life rings and defibrillators is also present in this application group, including access to potentially dangerous infrastructure such as substations.
  • Dash Cams – Aftermarket in-vehicle cameras used to record the interior or exterior of the vehicle, often to provide evidence in the event of a road accident.

Indirectly related IoT applications and Forecast Insight Reports include:

  • Autonomous Road Passenger Vehicles – Automated Road Passenger Vehicles contains autonomous vehicles primarily used to transport passengers on the road, this Application Group includes buses, coaches, minivans, as well as private vehicles. To be counted as part of this Application Group vehicles must be capable of operating at Level 3 of the SAE levels of autonomy. This level of automation requires the vehicle to monitor the environment and requires “the driving mode-specific performance by an automated driving system of all aspects of the dynamic driving task.” In this Application Group the number of autonomous vehicles is represented by RGUs only, the vehicles’ connections will be found in the Vehicle Head Unit Application Group.
  • Road Fleet Management – Road Fleet Management covers in-vehicle transportation logistics including job allocation, vehicle tracking, vehicle and driver monitoring, maintenance planning, safety compliance, fuel management, and incident management. It can be delivered as a service via a dedicated aftermarket device or through the factory-fit connectivity (accessed via the vehicle head unit). The forecast takes both heavy and light duty vehicles into consideration. It includes devices deployed in cars, vans, trucks and buses, along with heavy vehicles such as tractors, combine harvesters, pile drivers, tunnelling machines, cranes, and other off-road equipment. Fleet Management solutions are increasingly making use of in-vehicle cameras to monitor both outside the vehicle and within the cabin. These devices, and their consumer counterparts, can be found in the Dash Cams Application Group.
  • Vehicle Head Unit – Embedded connection that provides the vehicle’s wide area connection. May be included as part of the vehicle’s infotainment unit, or a telematics control unit. This connection will typically support multiple other connected vehicle applications.
  • Inventory Management & Monitoring – This Application Group pertains to the remote monitoring of volumes and inventory, including consumables, warehouse stock, retail stock, and refuse levels. It encompasses stock level and condition monitoring, such as specialist inventory systems, baggage handling systems, soap dispensers, toilet doors, pest control, and various other use cases. It also covers all types of electronic shelf labels. Additionally, this group includes warehouse management systems, which involve picking machinery and warehouse robots (unless counted in other autonomous vehicles or robotics categories as is the case for cobots and automated forklifts).
  • In-Vehicle Infotainment – In-vehicle infotainment applications including music, video and device tethering. Includes aftermarket devices in addition to applications hosted on the vehicle head unit. Vehicle connections and OEM mirroring systems such as Android Auto and Apple Carplay are counted as part of the Vehicle Head Unit Application Group.
  • Global IoT Forecast Report, 2023-2033
  • Roadside Assistance – Application that notifies recovery services in the event of a vehicle breakdown. Diagnostics and location tracking may be included to improve efficiency. This application includes dedicated devices in addition to applications hosted on the vehicle head unit.
  • Vehicle Rental, Leasing & Sharing Management – Onboard devices and vehicle head unit hosted applications that are used to provide access, monitor and track the usage of vehicles lent to third parties. This may include traditional car hire companies, shared vehicle programs, and finance companies that lease vehicles to their users.
  • In-Vehicle Navigation – Built-in and discrete satellite navigation devices used to provide directions and routing to drivers. Built-in devices that rely on the vehicle head unit for a connection do not register as a discrete connection in our forecast.
  • Healthcare Monitoring – Includes clinical remote monitoring for heart disease, diabetes, and pulmonary disease (COPD). Also includes wearable fitness tracking devices (but not smart watches), and various home health monitoring devices such as connected bathroom scales. Also includes patient tracking in clinical environments such as hospitals.
  • Worker Safety – Personal monitoring and support solutions for fire service, police, and emergency medical service personnel. Also includes lone worker safety in multiple vertical industrial contexts, particularly those involving dangerous environments such as logging and mining.
  • Assisted Living – Assisted Living solutions include people tracking devices for the elderly and infirm, and comprehensive, connected medicine dispensers, assisted living solutions for patients that need significant day-to-day support or monitoring. Within the niche of assisted living, connected medicine dispensers play a crucial role and are used to promote patient adherence to prescriptions.
  • Child & Pet Tracking – Dedicated devices for tracking children, including anti-abandonment devices used to prevent children being left in cars. This Application Group does not include mobile phones, or any assisted living devices used by children. Tracking devices for pets, mostly cats and dogs but also potentially other household pets. Both kinds of tracker typically include GPS location capabilities and mobile connectivity, although some may use network triangulation based location to extend battery life.

Other content and related analysis

Besides the detailed sector-focussed content described above, Transforma Insights offers an extensive range of thematic- and vendor-focussed research that will prove invaluable to any end-user seeking to leverage new and emerging digitally transformative technologies.

Of particular note are our Vendor Insight and CSP Peer Benchmarking reports, which provide detailed profiles of leading vendors who might be able to support a range of end-user digital transformation projects.

Our Key Topic Insight reports focus on the qualitative aspects of Digital Transformation, including investigation of interesting or noteworthy topics.

Detailed analysis of regulations that might apply to digitally transformative projects around the world can be found in our Regulatory Database. Meanwhile, our Case Study Database contains more than 1,000 case studies of technology implementations. Each case study contains detailed information on the specifics of the deployment. Used in aggregate it can provide unrivalled guidance on project prioritisation, best practice and vendor selection.

Sector Focus

Sector Report

Digital Transformation in the Insurance Sector

REPORT | DEC 16, 2021 | Jim Morrish
Transforma Insights’ Insurance sector report discusses the impact of digital transformation technologies in the Insurance industry and includes analysis of Insurance sector Case Studies drawn from Transforma Insights’ Best Practice & Vendor Selection Database.

Related Reports

All Reports

Usage-Based Insurance: New business models and rising premiums driving a 205 million device industry by 2033

REPORT | NOV 13, 2024 | Matt Arnott ; Nikita Singh
This report summarises Transforma Insights’ view on the Usage Based Insurance (UBI) Application Group found in the Transforma Insights Connected Things IoT forecast. The report covers details on the benefits of UBI, the role of connected telematics devices, potential savings, and market sentiments on the use and need for UBI devices. Mostly concentrated in developed regions such as North America and Europe, the market for usage-based insurance is typically triggered by the rising cost of insurance premiums, innovation within the local insurance industry, and shifting consumer preferences. Global adoption of UBI is still very fragmented in nature, largely due to the need to develop solutions to suit national markets. Smaller markets lag in UBI adoption due to its high cost to implement. However, the launch of connected cars equipped with OEM-backed software solutions can increase the adoption of UBI, particularly in smaller markets. This could in turn launch new vendors in the market. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.

CCTV: 573 million devices being used for surveillance purposes

REPORT | AUG 30, 2024 | Suruchi Dhingra ; Rohan Bansal ; Matt Arnott
This report summarises the status and forecasts from the CCTV Application Group found in the Transforma Insights Connected Things IoT forecast. The report provides a description of what is covered in the Application Group, as well as top-level figures from the forecast that provide detail on how many connected devices will be installed, the types of communication technology used and the total revenue opportunity. Full details are accessible through the TAM Forecast tool.

eCall: 714 million revenue generating units by 2033 driven by regulatory mandates and road safety initiatives

REPORT | APR 25, 2024 | Nikita Singh ; Matt Arnott
This report provides Transforma Insights’ view on the eCall market. This segment comprises two sub-applications: ‘eCall Head Unit’ and ‘Dedicated eCall’. eCall or emergency calling has become a common feature in cars following regulatory mandates in the European Union, the Eurasian Economic Union, Japan, the United Arab Emirates, and other parts of the world. It is also growing organically in countries that still do not have any regulations because for OEMs this is a very cheap service to provide and it gives them the opportunity to add another product to offer, with limited downside. Many road safety programs focus on reducing the severity of accidents. However, emergency calling programs specifically aim to reduce response times and provide greater information for first responders. eCall can be initiated either manually (by pushing a button) or automatically via activation of in-vehicle sensors when a serious vehicle crash occurs. In its early days, eCall used 2G and 3G networks to make calls and transfer data, but this now must be replaced with NG (Next Generation) eCall that uses 4G or 5G cellular networks because older networks are being phased out. NG eCalls will provide higher network availability, better service quality, and will allow transmission of larger amounts of data (that may include health data of occupants or live images of accident scenes in future) to the emergency services. It will also enable the transmission of video in addition to voice and data. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite, and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.

Loss Prevention: 15 million devices in 2033 providing retailers with theft prevention solutions

REPORT | APR 11, 2024 | Paras Sharma ; Matt Arnott
This report provides Transforma Insights’ view on the IoT market for Loss Prevention, predominantly in retail. This segment comprises two applications: Boundary Control and Goods Location Monitoring. Essentially, Boundary Control solutions include hard tags, ceiling-mounted and pedestal systems, detachers, deactivators, and labels. Goods Location Control include the use of GPS trackers generally hidden inside high-value goods. Brick-and-mortar businesses are facing a challenge to deter theft and protect them from financial losses. In 2021, US retailers witnessed USD95 billion worth of financial losses due to retail theft. Retailers are increasingly adopting multiple technologies and security solutions to protect their goods from internal and external theft. The use of Boundary Control and Goods Location Monitoring is essentially employed as a part of retail loss prevention strategies. Businesses implement tags, labels, and GPS trackers to mitigate theft. Also, businesses gain better inventory visibility throughout their supply chains. This can help in identifying out-of-stock goods in retail outlets, which can impact stores’ revenue. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.

Stolen Vehicle Recovery: Rising vehicle theft encourages a 42 million device market by 2033

REPORT | MAR 18, 2024 | Nikita Singh ; Matt Arnott
This report provides Transforma Insights’ view on the Stolen Vehicle Recovery market. This segment comprises applications supported on the factory-fit Vehicle Head Unit as well as aftermarket devices. Vehicle theft is a pervasive issue in many countries, leading to the need for Stolen Vehicle Recovery devices. These devices include vehicle tracking to warn of break-ins, prevent theft or facilitate vehicle recovery in the event of theft. In more sophisticated systems it may be possible to sound alarms or shut down vehicle functions. This application comprises aftermarket devices that can be placed in the vehicle in addition applications running on the factory-fit vehicle head unit. There are a variety of business models. For instance, automotive OEMs are using embedded Stolen Vehicle Recovery services as one of a series of value-added services to generate alternative and recurring revenue streams. In some cases, aftermarket devices are also offered as complimentary service by automotive dealers and insurance companies.

Security Tracking: 12.2 million connected devices by 2032, generating USD1.8 billion in revenue

REPORT | JAN 17, 2024 | Paras Sharma ; Matt Arnott
This report summarises the status and forecasts from the Security Tracking Application Group found in the Transforma Insights Connected Things IoT forecast. The report provides a description of what is covered in the Application Group, as well as top-level figures from the forecast that provide detail on how many connected devices will be installed, the types of communication technology used and the total revenue opportunity. Full details are accessible through the TAM Forecast tool.

Asset Monitoring: 181 million devices by 2032 to mostly prevent theft and increase asset productivity

REPORT | DEC 14, 2023 | Rohan Bansal ; Matt Arnott
This report summarises the status and forecasts from the Asset Monitoring Application Group found in the Transforma Insights Connected Things IoT forecast. The report provides a description of what is covered in the Application Group, as well as top-level figures from the forecast that provide detail on how many connected devices will be installed, the types of communication technology used and the total revenue opportunity. Full details are accessible through the TAM Forecast tool.

Dash Cams: 78.4 million connected in-vehicle cameras will improve driver efficiency and road safety in 2032

REPORT | NOV 29, 2023 | Suruchi Dhingra ; Matt Arnott
This report provides Transforma Insights’ view on the Dash Cams market. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market.

Generative AI use cases flourish across multiple domains and industries

REPORT | OCT 05, 2023 | Suruchi Dhingra
Generative AI opportunities are being increasingly explored by companies across many industries. In this Key Topic Insight Report, we start with the discussion on what generative AI is, the benefits of the technology, and how has the technology evolved over the years. We also discuss the meaning of Foundation Model and Large Language Model, the terms which appear frequently whenever generative AI is discussed. A major part of the report focuses on highlighting use cases where generative AI can be deployed to support several enterprise functions. It will help potential adopters of the technology to prioritise use cases that will benefit the most by use of generative AI. For example, it discusses the potential of the technology in customer support, IT, sales, marketing, finance and R&D functions. The report also lists examples of leading companies that are already deploying the technology within these functions. While the technology looks promising for the future, it has a flip side too. The last part of the report discusses the major challenges associated with the technology, including data bias, technical complexity, intellectual property rights and legal concerns.

Digital Transformation Implementation Best Practice Report

REPORT | APR 15, 2020 | Jim Morrish ; Matt Hatton
This report is based on analysis by Transforma Insights of hundreds of Digital Transformation implementations around the world. Our team of expert analysts assessed each implementation and calibrated it against our 216 solution characteristics. The aim is to better understand the prevailing trends in technology deployment and to extrapolate best practice.
Echo Nomad Limited t/a Transforma Insights Address: 7 Albert Road, Reading, RG4 7AN, United Kingdom – Company Number: 12185723
enquiries@transformainsights.com