- InsuraGuest to offer digital insurance solutions to more verticals
- Insurtech sector set to grow at CAGR of 43% to 2025, twice as fast as fintech
- Insurtech market to cross $18 billion in 2025
- Big insurers continue to drive demand for insurtech
It took a while, but insurtech is now giving fintech a run for its money. Slow off the starting block, innovation in the insurance industry is currently outpacing digital developments in banking, payments, and other financial technologies. As a result, traditional insurers are turning to companies, such as InsuraGuest Technologies Inc. (TSX.V: ISGI), that offer cutting-edge ideas and solutions to revamp antiquated business models and systems. Consequently, InsuraGuest plans to increase its range of services to meet the growing demand for insurtech solutions. Digitizing insurance services is widely expected to reduce operating costs and increase customer satisfaction during the sign-up, renewal and claims processes.
A recent report from industry analyst Grand View Research paints a picture of potential for the fledgling insurtech industry. Valued at just $1.5 billion in 2018, the market is forecast to cross $18 billion in 2025, experiencing a CAGR of 43.0 percent from 2019 until then (http://ibn.fm/zTkcb). Spending by incumbent insurers has caused investment in the insurtech sector to double that in the fintech sector, growth of which is projected at 22% (http://ibn.fm/FfU87).
A major driver of demand for digitization will come from traditional insurers as they attempt to simplify transaction processes and improve customer service. A study by the renowned Boston Consulting Group (BCG) reports that incumbent carriers and brokers are increasingly collaborating with insurtech start-ups to revamp their established IT architectures in an effort to increase market responsiveness.
Interestingly, the BCG defines insurtech as a type of fintech designed for the insurance industry that includes artificial intelligence, the Internet of Things (IoT), advanced analytics, mobile technology and other developments. Digitization is also expected to significantly improve the insurance industry’s core business of risk measurement and management, which in turn should allow more consumers to enjoy basic insurance protections at less cost than is currently available.
InsuraGuest is no newcomer to the insurtech arena. The company already offers a suite of insurance products for the hospitality industry. InsuraGuest’s Hospitality Liability policies offer protection to hotels and vacation rental properties and can address covered claims from guests and their room occupants during their stays. The company’s Application Programming Interface (API) can integrate with clients’ property-management systems to offer guests specialized protection policies. The insurtech platform and policy product combination offered by InsuraGuest helps transfer the exposure to liability away from the property and property owner while guests benefit from potential accident and loss coverage during their stays. InsuraGuest’s platform is currently capable of integrating with approximately 70 different hotel and vacation rental-property management systems, linking it to approximately 40,000 properties worldwide.
For more information, visit the company’s website at www.InsuraGuest.com
NOTE TO INVESTORS: The latest news and updates relating to ISGI are available in the company’s newsroom at http://ibn.fm/ISGI
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