The insurance industry is experiencing a wave of innovation through insurtech, with companies like State Farm leading the charge in patenting technologies that enhance customer satisfaction and streamline processes. These patents range from emergency assistance tools to personal property replacement systems, showcasing how technology is revolutionizing insurance services. Meanwhile, strategic deals in the insurtech sector are fluctuating, and job postings related to insurtech are seeing shifts in demand within various occupational categories. The impact of insurtech extends beyond the insurance sector, influencing various industries. GlobalData’s Insurtech – Thematic Research report explains the effect of the insurtech theme on the wider insurance industry, highlighting the leading AI disruptors and collaborators and key trends in the market. Buy the report here.
This article presents a quarterly round-up of the latest trends in the insurance industry regarding insurtech. It provides an overview of recent developments in insurtech-related deals, talent acquisition, and patent filings within the insurance industry.
Diverse applications of insurtech in insurance industry
Insurance companies in the field of insurtech are leveraging new technologies and applications to innovate and improve their businesses. State Farm Mutual Automobile Insurance Co, for example, has recently patented several technologies that will benefit the acquirer in terms of insurtech. One patent, "Methods of facilitating emergency assistance," uses accident data analysis to recommend emergency aid, enhancing customer support and potentially reducing claims costs. Another, "Systems and methods for enhanced personal property replacement," streamlines claims by generating item lists and coordinating deliveries, improving the customer experience.
State Farm's "on-demand insurance (ODI) server" tailors coverage based on real-time transportation needs, offering personalized options. They've also patented virtual testing for autonomous systems and a property analyzer device that consolidates property information for informed decisions. These innovations reflect State Farm's dedication to leveraging technology in the Insurtech landscape.
These patents highlight how insurtech-driven insurance companies are using technology to enhance services, offering efficient claims processing, personalized insurance options, improved safety assessments, and property analysis. Implementing these innovations improves customer satisfaction, reduces costs, and ensures competitiveness in the fast-changing insurtech field.
The industry experienced 0.51% decline in the number of insurtech-related patent applications in Q2 2023 compared with the previous quarter. On an annual basis, the number of insurtech-related patent applications in the insurance industry witnessed a rise of 10% compared with Q2 2022.
Strategic deal trends in insurtech in insurance industry
Insurance companies are not only focusing on innovation to enhance their patent portfolios but are also making strategic investments in insurtech. These investments aim to secure lucrative deals with partners and position themselves at the forefront of industry advancements. Some of the recent deals underscore the importance of insurtech in the insurance industry.
In Q2 2023, the number of insurtech-related deals in the insurance industry declined by 27% compared with Q2 2022. On a quarterly basis, there was 33% drop in the number of deals in Q2 2023 compared with the previous quarter.
Impact on hiring
In terms of new job posting, in Q2 2023, the insurance industry experienced a 29% drop compared with the previous quarter. On an annual basis, job postings also declined by 25%. Notably, computer and mathematical occupations, with a share of 19%, emerged as the top insurtech-related job roles within the insurance industry in Q2 2023, with new job postings drop by 43% quarter-on-quarter. Business and financial operations occupations came in second with a share of 18% in Q2 2023, with new job postings rising by 5% over the previous quarter. The other prominent insurtech roles include management occupations with a 17% share in Q2 2023, and sales and related occupations with a 6% share of new job postings.
QBE Insurance Group, Chubb, Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft (Munich Re), Travelers, and Charles Taylor are among the top companies leading in insurtech hiring within the insurance industry.
Countries driving adoption of insurtech in insurance industry
The US is the leading country in insurtech adoption within the insurance industry, boasting the highest number of insurtech-related patents, jobs, and deals. Meanwhile, Peru, France, the Netherlands and the UAE also maintain significant positions in insurtech adoption within the insurance industry.
In conclusion, the insurtech landscape within the insurance industry presents a nuanced picture. While patent applications have seen a minor decline in the most recent quarter, they show a promising annual growth. Strategic deals in the sector have experienced fluctuations, with a notable decrease in the number of deals in the latest quarter. Job postings in the insurtech field have also seen declines, particularly in certain occupational categories. These trends collectively reflect the evolving dynamics of insurtech within the insurance industry.
To further understand GlobalData's analysis on insurtech in the insurance industry, buy the report here.