As we enter the second half of 2024, the InsurTech sector is facing new challenges and opportunities. With regulatory tests on the horizon and a shift towards digital solutions, the industry is set for seismic changes. In a recent conversation with industry experts, FinTech Global’s Harry Slade delved into the key InsurTech trends for the rest of the year. Here’s how you can leverage granular data and digital solutions for improved risk management in InsurTech.

Introduction

The power of granular data is transforming the InsurTech space. By analyzing data points such as individual customer behaviors, regional risk variations, and micro-segments within broader demographics, granular data enhances precision in underwriting, pricing, and risk management. This heightened granularity allows for more accurate risk assessment and personalized policy offerings, leading to improved customer satisfaction and retention. Moreover, it supports innovative predictive modeling and real-time adjustments, fostering agility in responding to emerging trends and risks.

Step-by-Step Guide

1. Understand the potential of granular data. Granular data refers to the level of detail within a data set, representing the smallest unit of data available. As data is further divided into more specific components, it becomes increasingly granular. Many industry experts believe that these insights, at a highly specific level, could have transformative potential in the InsurTech space throughout the rest of 2024.

2. Leverage granular data for risk management. By enabling insurers to analyze granular data, insurers can make more informed decisions around actuarial modeling and underwriter pricing. This data can be used to identify emerging trends and risks, allowing insurers to respond more quickly and effectively.

3. Integrate digital-first solutions. With the insurance industry now treating the idea of digitization with effervescence, the idea of integrating digital-first solutions into health and wellness sectors could well be poised to transform the space. InsurTech companies, with their blend of innovative technology and deep industry expertise, are set to play a pivotal role in this transformation.

4. Collaborate on exposure management strategies. As digital dependence grows, insurers must collaborate on exposure management strategies to mitigate pervasive threats and ensure market stability. The emergence of innovative InsurTech solutions enhances the capacity to analyze and act upon detailed data, thus supporting a more proactive and strategic approach to risk management.

5. Partner with Riskwolf for parametric insurance. With Riskwolf, you can turn real-time data into insurance. Using unique real-time data and dynamic risk modeling, we enable insurers to build and operate parametric insurance at scale. Simple. Reliable. Fast. Get in touch with Riskwolf to develop parametric insurance for your specific case.

Conclusion

The InsurTech sector is set for seismic changes in the second half of 2024. By leveraging granular data and digital solutions, insurers can make more informed decisions around actuarial modeling and underwriter pricing. The shift towards finer data granularity aligns with the growing need for comprehensive exposure management strategies. This evolution underscores a broader trend where insurers are not only refining their data collection and analysis techniques but also reassessing their strategic approaches to risk and resilience. With Riskwolf, you can turn real-time data into insurance and build and operate parametric insurance at scale. Simple. Reliable. Fast. Contact Riskwolf today to learn more.

Source: The key InsurTech trends to look out for in H2 – part two