And, despite tech innovations and the development of personalized services in other areas of finance, life insurance remains largely unchanged. Luckily, there is a small but growing pocket of insurtech startups looking to modernize it. These companies are finding ways to digitize life insurance to appeal to consumers – and they’re allowing incumbents to revamp traditional offerings, either by partnering with them or using their technology.
Business Insider Intelligence, Business Insider’s premium research service, has forecasted the shifting landscape of life insurance in The Future of Life Insurance report. Here are the key problems insurtechs are tackling:
The need for modernization in life insurance is clear: Overall sales are slowing, and policy ownership is hitting record lows. And because it’s such a tightly regulated space, innovation from incumbents has stagnated – but they’re not helpless. Consumer-focused and insurer-focused startups have emerged to offer new technologies and process improvements.
Insurtech startups will soon set new industry standards and consumer expectations around this complex product. That, in turn, will serve as a catalyst for innovation among legacy players.