Why Insurtech offers a bright future for Insurers - Image by Gerd Altmann from Pixabay For insurance companies to increase business value, they must find a way to increase profits and revenues. To achieve that, they must leverage technology to create efficiencies and new products. This blog uncovers what they need to do.

In recent years the emergence of Insurtech has triggered a technological revolution in the Insurance industry. Technology-led business innovation is now a new normal in insurance, and Insurtech plays a pivotal role in this change. Insurtechs are the new reality and an effective resource for many insurance companies looking to leverage the latest technologies to achieve a range of benefits for themselves and their customers.

Yet effective transformation is harder than innovation for an industry that can trace its roots back to the bottomry contracts of Babylon more than 5000 years ago. Insurers must maintain legacy solutions, often using mainframes that are expensive and time-consuming to adapt.

For insurance firms, now is the time for action, though. As Mckinsey noted recently, “The market dynamics today, with insurtech players facing headwinds and incumbent insurers benefiting from certain tailwinds, have effectively “turned the tables” across the insurance landscape, putting traditional insurance companies in a much more advantageous position relative to insurtechs. In light of this, executives should consider the acute, strategic, and tactical opportunities now available to them.”

Before acting, Insurers must consider why they are transforming. Ultimately it must deliver growth and increase profitability. To achieve this, insurers must improve across three fundamental areas: Speed, Accuracy and Trust.


There is more than one facet of speed for insurers to consider. The first is business processes such as underwriting, reducing the claims cycle time or responding to customers. The customer experience is integral as customer expectations change across their digital experience journeys. They expect a quick and accurate response to build trust.

Cloud transformation: Cloud is an important part of speed. Cloud enables an organisation to deliver scalability at speed. With a mature innovation ecosystem, they can work with a partner to deploy and configure new tools faster to meet their need.


Accuracy is all about the data. There are five facets of accuracy to consider.

  1. Insurers must embrace precision to accurately identify risk and help with risk tolerance.
  2. Accuracy on the underwriting side and understanding of the customer genome to obtain a full 360° view of the customer.
  3. Data accuracy is also important in intelligent claims, as you need to ensure the correct payments are made.
  4. Accurate data also helped with fraud detection and management across every type of insurance, including P&C, Life and retirement.
  5. Accuracy within compliance is vital. For insurers, a 99.9% accuracy is not enough; systems and data must be 100% accurate or risk penalties from state and national regulators.


Building Trust with customers is essential. Customers will only engage where insurers build trust. Building that trust takes time, and a laser focus on assuring privacy and delivering quick, accurate and intuitive responses across the customer’s channel of choice.

Instilling trust with customers also requires a 360° view of the customer. That view enables the contact centre agent to approach every engagement empathically and ensure they speak to the right person quickly.

Insurers must also build trusting relationships with more than customers. They must build them with partners, agents, and brokers. Trust with brokers is critical because they are the distribution channel for insurers and need to trust that the insurer will deliver on sales, marketing, servicing and especially compensation.

How Insurtech can help insurers

There are three dimensions of how Insurtech can help reshape the industry.

Improving Operational Efficiency

The first is from the operational efficiency side. Insurers are already adopting technology to optimise their operations, for example implementing AI and/or RPA to reduce cycle time and productivity improvements in operations. These improvements are iterative and can help insurers improve profitability.

Adapting to meet the new Customer Expectations

The second is customer experience. Customer expectations have changed enormously over the last few years, driven by Amazon, Netflix and other disrupters. Can your contact centre respond to your customers on their channel of choice within 180 seconds? Technology is central to changing that experience across the contact centre, websites and mobile.

Infosys is working with one client that saw an opportunity in the pensions market where a modern solution with investment in sales and marketing will see growth and increased profitability.

Insurers are looking to evolve both systems of engagement and systems of record to deliver these changes. The systems of engagement are being upgraded with new technology integrated into the legacy mainframe systems of record. The systems of record are also changing. However, insurers are adopting an incremental modernisation, often by the line of business.

Infosys is currently changing the system of record for personal lines insurance with an API-based solution at a large insurer. The new solution will enable them to take advantage of growth with a scalable and open solution that will work well with modern systems of engagement—ultimately delivering greater profitability than relying on cumbersome legacy solutions.

Product introduction

The third dimension is product introduction. There are new business models where new insurtech solutions are emerging. They include personalised, embedded and usage-based insurance. New technologies such as AI and IoT are already being leveraged to deliver some products.

Five areas where insurtech provides innovation are digital distribution, data analytics, artificial intelligence, IoT and blockchain.

What does the future hold?

While these technologies offer promise and, in some cases, have delivered, such as IoT and telemetry, to build usage-based products, there is more to come. For example, insurers have not effectively used AI to transform their business yet.

Generative AI will take AI to a very different dimension. The use cases are yet proven, but they are starting to emerge. It may enable a step change in improving underwritings straight through processing. Generative AI could summarise accurately and enable faster, accurate and more scalable decision-making.

Another opportunity lies on the claims side with blockchain. Travel insurance could see a combination of blockchain and Ai to eliminate the need for the insured to call and claim. Instead, in the event of a delay or cancelled flight, a smart contract could automatically reimburse the customer for a delay and provide any further information about hotels to stay or even propose or make a new flight booking based on predefined preferences.

Another use of blockchain is around asset insurance. Many high value often unique items from gems, to wine, to art, to watches are now being recorded on a blockchain. This allows insurers to track the life of an object to decide on its value and insurability

Making use of Ecosystems

To take advantage of these new technologies, insurers must find a partner who understands the insurtech landscape and has worked with insurers on legacy projects. The Infosys Innovation network can help insurers. It is an ecosystem of partners with Insurtech startups that it works with. It understands the offerings and, in some cases, has helped bring them to market or already implemented them at insurance companies. Infosys can provide access and support to insurtech firms such as Benekiva, Snapsheet, and Betterview.

These Insurtechs offer solutions across all three dimensions of innovation. On the operational efficiency side, some firms create bots to help with the claim side or improve the underwriting process. Companies like Atidot help insurance companies understand customer management metrics such as lapse rates and upsell and cross-sell opportunities with AI-based analytics. Others are delivering personalised insurance using IoT and telemetry.

This is not just about introductions. Infosys works with its insurance clients from the initial roadmap, managing It ecosystems to building, testing and maintaining systems across the software development lifecycle for point solutions and the existing software architecture.

We also have experience running the data and analytics arms for insurers, creating the master data management and delivering real value.

Insurtech companies can bring the latest and greatest technological advancement to insurers. With advice and support from Infosys, insurance firms can reduce costs, improve operational efficiency and elevate the customer experience significantly. Infosys can help reduce the time from ideation to implementation. We look at them as helping insurers achieve speed to market, driving accuracy by leveraging data and promoting trust through differentiated customer experiences.

Infosys-1Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, in more than 50 countries, as they navigate their digital transformation powered by the cloud. We enable them with an AI-powered core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace.

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Kannan Amaresh
Helping financial institutions Navigate their Next - This is the role Kannan has been playing at Infosys for over two decades now. He has been responsible for global insurance – a practice valued at USD 800M+ in revenue – since 2018. Besides P&L responsibilities, he oversees client relationships and new client acquisitions in the insurance vertical across all key markets. In his role as the Industry Head for Financial Services, Kannan also leads New Markets and Strategic Accounts - Financial Services, with a special focus on Fintech, Acquisitions and Sourcing Advisors group. Kannan is curious about business model disruption through technology, and this fuels his approach to helping clients stay ahead of the curve. At Infosys, he applies a unique lens of “Speed, Accuracy, Trust” (SAT) to solve customer challenges. With his business acumen and financial domain expertise, Kannan helps customers further business outcomes by using best-of-breed technologies. Relentlessly striving for excellence, being objective to earn trust, and leading by setting the standard for the industry are Infosys values embedded in his mode of leadership. Kannan has been sharing insights from his experience at various industry and community conferences and events. Having lived and worked in Scotland, Canada, and India, he is deeply appreciative of the cultural and historical roots of these countries. Kannan is a member of the Institute of Chartered Accountants. He is also passionate about inventing, with a patent pending in the USA for his work on ‘Predicting Financial Impact of Business Frameworks.’ He is always looking to explore and learn more about team dynamics and creating effective leadership frameworks. Kannan is an avid F1 and NBA enthusiast – outside work, you’ll find him hitting shots at the tennis court.


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