2023 Highlights 
Market uncertainty in 2022 affected investment priorities. Full-stack disruptors will likely suffer due to the significant capital they need to handle their low profitability. North America still leads the way in funding, while European Insurtechs target higher profitability markets.
1. Sustainable World
Insurance plays a pivotal role in the global climate change crisis. The ability to predict, manage and mitigate climate risks will have a massive impact on populations and their long-term well-being. Current players focused on improving these capabilities will succeed in the near future.
2. Smart Distribution
Embedded Insurance is a cost-effective way to increase sales and revenues in the industry. It is a 3 trillion market opportunity that has become the distribution model with the highest growth in recent years; enabled through cloud-connected platforms and open APIs, and led by Insurtechs and Tech Giants.
3. Digital Risks
Cyber crime presents a major risk in our increasingly digitised world. Criminals search for new sources of revenue in identity theft, ransomware, malware and phishing. In this environment, the implication of incumbents and new players with cyber insurance will help protect private and public entities.
4. Next Level Underwriting
Insurance has historically been perceived as a commodity. Additionally, the consequences of a world with low insurance penetration can be severe in uncertain times. New underwriting models can reduce costs and claims payouts, which enables competitive pricing and higher customer engagement.
5. Companies That Care
The COVID-19 pandemic has accelerated digitisation and precipitated a change in our lifestyles and habits, putting health at the centre. This reality has boosted multiple existing or emerging trends in the Healthcare ecosystem, which bring new opportunities and challenges for employers.
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Market uncertainty in 2022 affected investment priorities. Full-stack disruptors will likely suffer due to the significant capital they need to handle their low profitability. North America still leads the way in funding, while European Insurtechs target higher profitability markets.
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Insurance plays a pivotal role in the global climate change crisis. The ability to predict, manage and mitigate climate risks will have a massive impact on populations and their long-term well-being. Current players focused on improving these capabilities will succeed in the near future.
02
Embedded Insurance is a cost-effective way to increase sales and revenues in the industry. It is a 3 trillion market opportunity that has become the distribution model with the highest growth in recent years; enabled through cloud-connected platforms and open APIs, and led by Insurtechs and Tech Giants.
03
Cyber crime presents a major risk in our increasingly digitised world. Criminals search for new sources of revenue in identity theft, ransomware, malware and phishing. In this environment, the implication of incumbents and new players with cyber insurance will help protect private and public entities.
04
Insurance has historically been perceived as a commodity. Additionally, the consequences of a world with low insurance penetration can be severe in uncertain times. New underwriting models can reduce costs and claims payouts, which enables competitive pricing and higher customer engagement.
05
The COVID-19 pandemic has accelerated digitisation and precipitated a change in our lifestyles and habits, putting health at the centre. This reality has boosted multiple existing or emerging trends in the Healthcare ecosystem, which bring new opportunities and challenges for employers.
The insurance industry is being pushed to an unprecedented change: energy transition, digitisation and climate crisis are creating opportunities to transform a traditional and legacy-driven industry. Amongst the challenges observed in 2022, Climate Change, Cybersecurity, Embedded Insurance, Corporate Care and Connected Underwriting are on top.
The current global crisis and economic uncertainty have affected investor's priorities, resulting in a significant fall in Insurtechs' valuations. Industry disruptors that tried to substitute established full stack carriers, or explore Traditional Lines of Business, have faced financially challenging times. More established innovators are receiving more support from the ecosystem.
Traditional Lines of Business have a huge weight on the overall funding amount. By exploring Non-traditional LoB, we can extract specifics on what the market is betting on in times of crisis.
The technologies with the highest growth in 2022 are IoT, Analytics, API, Predictive Analytics and Health Diagnostics. They solve distinctive challenges in the insurance industry: accurate risk modelling and pricing, better customer experience in third-party platforms, comprehensive risk assessment and cost reduction.
Insurance investors followed the new world framework after the pandemic with the change in customer habits and its challenges. Insurers’ bets concentrated on protecting businesses and their employees, focusing on trends such as cybersecurity, climate risks or employee well-being.
The insurance marketplace goes beyond carriers and customers, creating the opportunity for many participants to seamlessly connect with each other, and also digitise and distribute insurance data to enhance customer experience, risk assessment and claims.
Focusing on automation to improve profitability is a very efficient way to attract new partnerships with Insurtechs.
Climate change is causing an exponential increase in the frequency and intensity of catastrophic events.
Losses due to extreme climate events total $316 billion annually, and around two-thirds of them are currently uninsured.
Most insurers are moderately prepared for climate change events and just a few are considered prepared.
AXA
The company has invested in AI services for properties (Cape Analytics), alternative energies (Green Struxture, Eranove) and IoT tracking and analysis for shipments (Tive).
Generali
In 2022, the insurer partnered with UNDP on digitally enabled parametric insurance solutions for the world’s vulnerable communities and businesses.
Ping-An
Their net-zero strategy included launching a new ESG evaluation system powered by NLP, a platform to mitigate risks in agriculture, and an app for EV owners.
Climate change is causing an exponential increase in the frequency and intensity of catastrophic events.
Losses due to extreme climate events total $316 billion annually, and around two-thirds of them are currently uninsured.
Most insurers are moderately prepared for climate change events and just a few are considered prepared.
AXA
The company has invested in AI services for properties (Cape Analytics), alternative energies (Green Struxture, Eranove) and IoT tracking and analysis for shipments (Tive).
Generali
In 2022, the insurer partnered with UNDP on digitally enabled parametric insurance solutions for the world’s vulnerable communities and businesses.
Ping-An
Their net-zero strategy included launching a new ESG evaluation system powered by NLP, a platform to mitigate risks in agriculture, and an app for EV owners.
Thought Leadership / Business Transformation
