Insurtechs urged to prioritise personalisation

Technology and management consultancy Capco, believes insurtechs that prioritise hyper-personalisation and embedded insurance will be able to better underpin their long-term commercial value and define the sector in the coming years.

Usman Sheikh, executive director at Capco, said: “Despite flagship insurtech brands decreasing in valuation this year and the sector facing a challenging economic climate, there remains a clear path towards attaining long-term growth through smart product investment and commercial prioritisation.

“Hyper-personalisation is without question the greater opportunity for insurtechs, particularly through the aggregation and use of more complex datasets, to develop a deeper understanding of customers and provide them with more tailored products and services.

“Insurers should also consider the opportunities presented by emerging digital assets such as non-fungible tokens and cryptocurrencies. As the digital asset class continues to grow in popularity and levels of adoption rise, tailored insurance products to protect these assets is an obvious potential growth area.”

He added: “Embedded insurance is poised to follow a similar journey – and upwards trajectory – as embedded finance. As consumers become increasingly comfortable with the idea of a subscription economy with a greater emphasis on access to products and services rather than ownership, insurance products that are fully embedded and included within subscription fees will inevitably be more in demand.”

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