Top Insurtech Trends of 2023 

by Troy Stewart, President and Chief Operating Officer, Brush Claims

As advancements in technology become more robust, each new year is miles ahead of the last in innovation. Insurtech is a rapidly growing industry, with insurance technology spending in the U.S. expected to grow by more than 25 percent between 2022 and 2026. As more insurance companies are looking for innovative ways to modernize their processes and reach new clients, trends will continue to evolve rapidly.

With the latest advancements set to make a big impact in 2023, the insurance industry has the opportunity to evaluate and apply each one that can affect current business processes. Digitization and innovation can be challenging, but with diligence in product exploration and proper change management, your organization will be on pace with the rapid changes taking place.With that, let’s dive into a few of the biggest insurtech trends set to shape the industry this year and beyond.

Advancements in Artificial Intelligence (AI) and Machine Learning (ML)

With the introduction of technologies like ChatGPT, 2023 is poised to bring immense growth in the artificial intelligence and machine learning space. AI and ML algorithms can now process more data than ever before and make predictions with the highest degree of accuracy. For the insurance industry specifically, AI and ML can be used to predict potential risks and help underwriters make more informed decisions. AI can also be invaluable for advanced fraud detection, claims management, and customer service.

The Rise of Blockchain

Blockchain technology is gaining traction in the insurance industry, and it is expected to play a significant role in 2023. Blockchain can be used to securely store and manage insurance policies, as well as to streamline the claims process. Policyholders will also be able to access their insurance information instantly, saving time and money for insurance companies by reducing the need for manual processes.

Personalization with IoT

When people think of the Internet of Things (IoT), they don’t typically think of how it applies to the insurance industry, but its rapid proliferation is making impacts sector-wide. IoT devices can be used to collect data in real-time from various sources, such as sensors, cameras, and smart home devices, which can provide valuable insights into potential hazards and property damage assessments. For instance, smart sensors can detect changes in temperature and humidity, allowing homeowners and property managers to prevent water damage caused by leaks or floods.

Additionally, IoT-enabled security cameras and motion sensors can detect intruders and notify authorities, reducing the risk of theft and vandalism. IoT also allows for remote monitoring of properties, enabling property managers to track their buildings’ conditions and make timely repairs, which can prevent costly damage in the future. In 2023, we can expect to see more insurance companies incorporating IoT technology into their business strategy.

Digital Distribution Channels

The rise of digital distribution channels is another major trend in the insurance industry. Insurance companies are increasingly using digital platforms, such as websites and mobile apps, to reach new customers and sell insurance products.

These platforms make it easier for customers to compare insurance options and purchase insurance products, and they can also be used to manage policies and file claims. As this year continues, we can expect to see an even greater emphasis on the implementation and enhancement of digital distribution channels, as insurance companies look to expand their reach and improve their customer experience.

Cybersecurity

With the growing number of cyberattacks in the insurance industry, it is essential that insurance companies have robust security measures in place to protect their policyholders’ data. This includes not only protecting devices against cybercriminals, but also ensuring that data privacy is maintained and not misused by individuals in the company. There will continue to be increased investment in cybersecurity, as insurance companies look to safeguard clients’ personal information.

At Brush Claims, we make it our mission to analyze insurance industry trends and put our clients in the driver’s seat, leading the charge into the future. By partnering with experts who have access to the latest innovation in artificial intelligence, cybersecurity development, and growth through digital distribution channels, your insurance organization will be poised for an upward trajectory. Trends have a habit of moving fast, so don’t forget to visit our LinkedIn, Facebook, Twitter and Instagram channels for the latest in insurtech development news.