The insurance industry is large and experienced as the insurance development roots back in times of ancient Babylon and Greece. Basically, insurance is a certain type of risk management that helps people to protect from unexpected losses in everyday life, in manufacturing, during travels, or on rest. Modern policies cover different sectors such as property or health. Surely, agencies and brokers earn on clients when they are safe.

Today, the industry grows quickly in terms of employment, premiums written, and income. As more dangers emerge (e.g. terrorists, war conflicts, natural disasters, and tech accidents) more people decide to get an insurance policy. Moreover, a lot of countries require personal insurance either for residents or for tourists who wish to cross the border. Considering these facts, we think that the insurance business may be pretty profitable in the next years.

This educational article focuses on historical aspects of the insurance processes and insurtech systems which rise nowadays. We will look at the past and current state of the market plus more specific tech questions including the development of dedicated software, e.g. managerial platforms for claims/policies, accounting apps, CRM products, and ratings.

Besides, we will provide readers with valuable insights regarding the most promising insurance industry trends 2021. They reveal how digital technologies and innovations can disrupt the whole insurance market. This is our brief but consistent glimpse at the future where software development and insurance are tightly interlinked. 

Without further ado, let’s explore how the insurance industry emerged and how it works now!

Historical basics of the insurance sector

First examples of insurance policies appeared a long time ago, in 4000-3000 BC. Contracts called bottomry or respondentia were known for Babylon’s traders, ancient Hindus in the VI century BC and Greeks in the IV century BC. According to the idea, these contracts provided for merchants together with loans that didn’t have to be paid if the related cargo were lost. Roman vendors also were familiar with bottomry. Later, these contracts became the basis for advanced marine law of the XV century.

Moving to exact states and territories, we want to analyze four big systems of insurance development:

  • England. In the XV century, Englishmen discovered the benefits of fire and marine protection. The first one appeared after the Great Fire in 1666 while the second one was a result of a long development. The current state of insurance in England was impossible without Lloyd’s – the insurance market founded in the XVII century. Its journal, Lloyd’s List, exists to this day.
  • The United States. The first US-based insurance brand was organized by Ben Franklin in 1752 and there were 17 firms in NY only by 1820. A lot of agencies failed because of speculations, bad management, fires, and earthquakes. Only after 1910 the insurance development became stable and featured a 600-fold increase between 1910 and 1990. By this date, there were more than 5,000 companies!
  • Russia. Similar to the UK and the US, the first policies in the Russian Empire were issued to protect properties from fire. Right after 1917, the industry was nationalized and was controlled by Soviet authorities in the USSR. A department called Gosstrakh worked with domestic policies while Ingosstrakh focused on foreign risks. Now, Russia combines national and private insurance firms.
  • Japan. This state has a mixed system where both private and governmental companies issue policies and rates are formed by voluntary teams with state oversight. Benefits and policies are similar to Western types. Some insurance types like workers’ compensations are obligatory while health insurance is typically included in social security. Japan actively collaborates with foreign insurers now.

Insurance development in different countries

Insurance in the modern world

The boom in insurance and economic development was near the end of the XX century because of increased globalization rates and integration of world trade. Today, brokers and agencies tend to move away from governmental control, focus on worldwide policies for multinational companies, actively implement software innovations because of quick insurance software development. Most of the leading teams are located in North America and Western Europe.

For example, there were four top-rated insurance brokers in 2017 globally. Two of them (Marsh & McLennan on the first place and Arthur J. Gallagher on the fourth position) are from the USA while two others (Aon and Willis Towers Watson in the second and third places, respectively) represent the UK. Moreover, other members of the big 10 are from these two countries, as well! The combined revenue of all leaders was around $47 billion.

Insurance Development by Brokers

Simultaneously, the total number of US-based agents/brokers/employees was near 1.135 million in 2017 with 35,000 increase compared to 2016. Since slight decreases during the recession of 2008-2010, the insurance and economic development is on the rise now, so we want to postulate our opinion once again: entering the insurance market with new software can be very profitable for entrepreneurs.

Insurance and economic development in numbers

Driving forces behind insurance and economic development

From the early 1990s, various researchers studied the development of insurance and correlation factors that affect this market. Explorations by Browne and Kim, Outreville, Beck and Webb, Dongshoi, and Rocha, Lester and Feyen revealed a few critical things which define the development of the whole insurance industry. While authors aren’t solid in their opinions, they agree that seven factors are definitive and positive:

  • Income
  • Population
  • Population density
  • Social security
  • Education
  • Private ownership
  • Legal framework

Simultaneously, other factors are completely negative, e.g. inflation, strong governmental control over insurance, and religious societies, particularly, Muslims. However, the most intriguing results are ambiguous. For instance, foreign insurers can cause negative effects for the first term but turn into a positive factor in the long run. Additionally, high young dependency ratio boosts the demand for insurance policies against mortality while high old dependency in the country drives interest to protection against loss of income.

The mentioned driving forces are viable for P&C and L&H insurance markets, as well.

Technology innovations in insurance   

The recently emerged “New Normal” paradigm dictates new modalities under which humanity has to develop from now on. Remote, mobile, touchless, always-on, home-based, distributed are just a few examples of the properties that should be inherent in the next-gen solutions for the present digital lifestyle. 

Since almost no industry has been left untouched by the booming digitization, the mobile apps and gamified platforms for the insurance sector seem to be neither weird nor unexpected. Moreover, modern people await innovative insurtech solutions to appear.  

What technical innovations and trends meet the people’s expectations best? And how do they relate to the insurance industry?  

We have selected several tech trends in insurance that we suppose are most appropriate for the infant but promising insurtech sector. Some of them have already been adopted by the forward-thinking insurers while the others still remain pending. But the contemporary insurtech as such is an untapped niche where IT innovators can easily find a lot of space to occupy.  

Insurance innovation: micro-insurance 

Digital innovations in insurance can be considered as particular in-field tactics while broader strategic approaches stand behind them. In other words, “what to achieve” is prior to “by which means”. The micro-insurance strategy belongs to such approaches. 

Nothing revolutionary new is in it at first glance. Quite a similar strategy of micro-credits is well-known in finance, for instance. But in contrast to the fintech sector full of digital solutions and software banking products the insurtech industry is just exploring ways of how to turn its innovative policies into digital products. 

Micro-insurance solutions seem to make the insurance sector follow broadly defined personalization that is gaining momentum in many well-digitized industries. Personalization implies either various tailor-made solutions or something that people may need just here and now.  

Micro-insurance means covering some particular risks while conventional insurance covers groups of risks. A standard life insurance policy, for example, covers a lot of circumstances that can never happen. Usually, such general coverage is expensive. Innovative micro-insurance offers a different scheme: insure what matters just for you and pay the premiums accordingly. 

The following advantages of micro-insurance add value to the approach: 

  • Affordability: the absence of superfluous insurance cases allows micro-insurance policies to be cheap.
  • Underwriting simplicity: the narrower the specification of a possible insurance event is the fewer obstacles the underwriters (banks, funds, insurance companies) can find to refuse insurance payouts.
  • Clarity of contracts: the KISS (Keep It Simple, Stupid) principle so well-known to designers and IT specs can be applied to micro-insurance contracts. The briefer the better; expeditious resolution of disputes: various customer-care approaches inherent in many software platforms can make resolution of disputes in micro-insurance fast and easy. A varying degree of automation (including chatbots in messengers) is worth trying.

Micro-insurance appears especially actual amid the rapidly developing sharing economy. Both the millennials and Gen-Z youth are becoming increasingly skeptical about owning cars and real estate. Therefore, they are less interested in traditional insurance policies. At the same time, micro-insurance against hacking of private e-stores, for instance, sounds appealing enough in these days of booming eCommerce.  

The micro-insurance approach makes the market more customer-centric. Not insurers, but clients start determining both the scope and cost of insurance products. In contrast to the conventional insurance industry deeply rooted in the “paper era” the micro-insurance strategy much better matches various digital technologies beginning from automated client authorization and up to blockchain-based micro-payments. 

Insurance innovation: Blockchain    

The technology standing behind cryptocurrencies – blockchain is potentially able to rediscover insurance at the grassroots level. To be precise, not blockchain only but the entire set of the so-called Distributed Ledger Technologies (blockchain, hashgraph, IOTA’s acyclic graph, and the like) can re-energize many data-driven industries.  

DLT is about a new way of having distributed control over data. Cryptographic encryption around which all DLTs revolve makes all sorts of intermediary entities redundant at any crypto interaction. The trustless crypto transactions occurring between cryptocurrency holders remove banks away since no third-party validators are needed, for example. The hash-based cryptographic algorithms validate transactions at the level of computer code.  

It took more than 10 years before blockchain became a sufficiently respectable technology for various big-deal doers besides crypto enthusiasts: investors, governmental authorities, celebrities, and financial institutions. Elon Musk promotes Bitcoin via his Twitter, JP Morgan Chase issues its own inter-bank crypto, Chinese Government is ready to deploy the national crypto RMB (Yuan), etc. 

Some crypto pioneers are already available in the insurance sector as well. The Teambrella project demonstrates how insurance might look like in the future. This community-based blockchain-driven initiative provides users with full control over all aspects of distributed insurance. Policies, claims, refunds, and premiums all belong to how the teammates determine their insurance events. Their personal crypto wallets co-controlled by the whole community introduce unprecedented methods of insurance fund management.  

Blockchain-based innovations can finally replace the old pain of insurance – fraud. Enhancing the security of insurance data through blockchain resonates with crypto approaches applied to some other sectors having to protect sensitive information: medical records, payment details, property rights, etc. Ethereum-driven smart insurance contracts can transform the whole market by eliminating negative human factors that oftentimes lead to cyber theft. 

The hottest crypto topic of today is NFT (Non-Fungible Tokens) that literally disrupts the market of modern arts. Minted under the ERC 721 crypto standard this type of token provides the easiest and the safest way of exchanging such sensitive info as ownership rights for any sort of property both intellectual and physical. The NFT-driven insurance policies can potentially redesign the whole insurance market. Especially with the dynamic type of NFTs capable of collecting and holding various data over time. Just imagine a car insurance policy that keeps the entire history of a car during the whole period of its lifecycle.  

The NFT technology is so innovative and exciting that a separate article is needed to cover the topic. Blockchain-based innovations for insurance are waiting in the wings. They all ought to share a fairly distributed architecture fitting into the emerging fabric of social interactions in which decentralization in the broadest sense sets the rules. 

Insurance innovation: P2P approach 

The peer-to-peer modus operandi is getting more and more popular in the contemporary business environment. It reflects the desire of modern people to get rid of the intrusive involvement of various regulatory authorities in interpersonal relationships. But the P2P approach does not belong to business only. This is a cultural phenomenon applicable to many human endeavors.  

One of the fanciest definitions of P2P relationships in the service sector, for example, is “Uberization” named after the largest global ride-sharing project Uber. What if an Uber-like mechanism starts working in insurance? 

Let’s assume a solution that enables any interested person to become an insurer. Sounds too provocative to be true? But something similar has already happened with taxi drivers when Uber deployed its ride-sharing application. The idea behind Uberization is simple: if there is a passenger there is always a driver. Another relevant use case can be found in the hotel business which is experiencing a similar reformatting with Airbnb. This is P2P in its essence.  

Potentially, anyone can insure some risks with anybody else. Many people have their own savings to be used for P2P insurance services. Instead of practicing some risky investments in stock or crypto, you can freeze your funds as insurance coverage for someone willing to pay you premiums for a particular insurance policy.  

For example, I have $ 10,000 of my private savings while you have a need to insure your car against a car crash. Nothing seems to prevent us from making a mutually beneficial agreement about terms and conditions of possible insurance events when either a part of that money or the total sum is paid as insurance coverage. Of course, I put my money at risk but you pay me monthly premiums encouraging me to accept the risk. Nobody is in between us in such a deal. This is the simplest scheme of how P2P insurance might work.  

The only remaining question is: what essential do we lack in such a scheme? We lack a relevant technical solution that can help us find each other in the field of private P2P insurance. What we need is an Uber-like application designed in accordance with the P2P approach to insurance. The application should offer a set of options enabling both a client and an insurer to set up an insurance contract in a couple of clicks.  

The above-mentioned Teambrella project offers a risk-sharing solution that implies person-to-community relationships. This is quite close to the idea of P2P insurance but yet not the one. It seems the niche is still vacant. Who will follow Uber’s footsteps to disrupt the global insurance market with the first pure P2P killer app?   

Insurance innovation: Robo-advisors 

Many modern wealth management services tend to follow a human-free paradigm with the so-called robo-advisors. A robo-advisor is a software product based on mathematical algorithms that utilize financial stats to deliver investment advice to clients. Similar to many other modern solutions, robo-advisors have personalization as the main driver in their background. 

The diversity of insurance products available on the market implies certain difficulties people can face when one or another insurance policy is to be chosen. The insurance-centric robo-advisors can potentially mitigate those difficulties by making decent advice based on critical information derived from different insurance policies processed with computer algorithms. 

The innovation of insurance robo-advisors includes multiple features making the concept worth considering: 

  • Personalization. Any one-fits-all suggestion is unlikely acceptable whatever area of human interactions it can be applied to. An instant automatic review of the insurance details that are interesting personally for you is what robo-advisors can offer to facilitate the desirable personalization of insurance services. Cloud-based machine-learning capacities are here to help. 
  • Lowering the cost of consulting. True professionals are never cheap. Getting valuable advice from a human consultant can cost too much to be affordable for many social strata with modest incomes. Insurance robo-advisors in the form of mobile apps and chatbots can reduce the consulting costs down to zero. Free-to-download apps are a norm today. 
  • Impartiality. Any insurance company staff can hardly stay neutral when providing potential clients with advice on insurance services. No total impartiality is inherent in human nature. Computer algorithms of robo-advisors, by contrast, remain impartial and unobtrusive since even the smartest machines have no self.  
  • AI-based fraud detection. Not the clients only but the insurers as well can benefit a lot from robo-advisors. Automatic fraud detection can be a central feature of enterprise robo-advisors especially created for insurance companies. Artificial intelligence is great at detecting even the slightest mismatching that anyway takes place in fake documents created by scammers to obtain insurance payoff. Forged signatures, photoshopped pictures, processed voices, discrepancies in personal information, and many other fraud-related issues all can be effectively uncovered by AI-based algorithms.  
  • Engagement. Software development is a unique industry having infinite capabilities in customer engagement. Many computer games and mobile applications become so viral that the global market appears covered by them in a matter of days. Nothing prevents robo-advisor apps from being exciting enough to leverage customer engagement turning users into policyholders almost instantly.  

Insurance robo-advisers can achieve what even the best-in-class insurance agents can not: provide clients with highly personalized solutions while staying totally impersonal. It is legitimate to say that we are living in the age of artificial intelligence: simply ask your mobile voice assistant about anything you want to realize this obvious fact. The insurance industry should keep pace with digital innovations as well. And insurance robo-advisors are the right solution to do so.      

Insurance innovation: Gamification 

How to boost business performance organically? Many traditional motivations stop working these days when overcomplicated social interactions make people solve very nontrivial problems. Besides, such straightforward methods as the salary increase, for instance, have certain physical limits.  

Gamification or, in other words, turning work into play is one of the most promising techniques of making people enthusiastic about some particular activity. Gamification is about engagement, therefore. 

Insurance business in general as well as fierce competition between insurance vendors are built upon people’s engagement. This is the reason for various gamified solutions to pave paths from a corporate sector in which they thrive to insurance. 

The insurance industry should adopt gamification also because there are so many fascinating experiences that people get with various digital technologies in which gamified elements are intrinsically present. Truth be told, reading a formal insurance contract is too boring for modern young people who share clip-thinking behavior. Moreover, not only younger generations are trapped by the dynamic contents of today’s digital agenda but grey-beard old gamers start coming as no surprise amid the recurrent COVID lockdowns.  

If people like playing games why not turn insurance into one of them?        

Probably, the oldest use case of gamification in insurance belongs to the agriculture-simulation social network game FarmVille. The game was launched in 2009 to train farmers in various aspects of farmland management. Virtual crop insurance is one of them. 

Another example of gamified insurance can be found in the iAMFAM simulation game in which gamers build their virtual livelihood infrastructures. Various accomplishments of the in-game avatars can educate users on how to select the right insurance policies while purchasing cars and houses when they make plans on their careers. The game was created by the American Family Insurance company. 

In contrast to the above-mentioned solutions aimed at customer education mostly, there are some projects that take gamification as the central line in the entire insurance activity. is one of them. Employee engagement-&-motivation along with customer training is declared as a domain that can be gamified with relevant software solutions. Mambo’s developers offer insurers to improve both risk management and staff performance via gamified experiences and learning environments they can create on demand. 

But in all honesty, the sector of gamified insurance as such is not overfilled with vendors. This is not because the approach is inefficient. The reason lies in the very infancy of such a new insurtech vision of the mature insurance sector. And this is great since both insurers and software developers still have a lot of untapped opportunities to occupy the niche. 

Digital transformation is gradually re-establishing insurance to turn it into what we know as insurtech. This is a complex process since insurance has a multifaceted structure in terms of multiple activities involved. The process is mutual by nature: the goals pursued by insurtech meet the solutions adopted by corresponding industries. Sometimes, such overlapping is not immediately apparent. Let’s indicate top insurance innovation trends that reveal how digital technologies match insurtech aspirations. 

  1. Web-based ecosystems for cost-cutting. The lower the cost of insurance services appear the stronger the competitive advantages insurers gain. Nothing can outperform web-based solutions in terms of fast and cheap communication with customers. That’s why web platforms, mobile apps, messengers, and social media can provide forward-thinking insurers with cost-reducing solutions for better customer engagement. 
  2. AI-based solutions for personalization. Personalization is a mantra for those who are fully aware of how modern people are obsessed with digital technologies. Almost every software product is customizable by default. Personal settings are what users appreciate in software service solutions. But how to meet the ever-changing expectations of the mass audience? Artificial intelligence, chatbots, and robo-advisors all can provide insurtech with personalization going far beyond human capabilities.
  3. Blockchain for better data security. Fraud is the disease that afflicts insurance for generations. It has been supplemented by cyber theft in the digital era. Insurance will always remain sensitive to data security. Cryptographic encryption provided by distributed ledger technologies in general and by blockchain, in particular, enables insurtech solutions to stay reliably protected from both cybercrime and negative human factors. 
  4. Interactive solutions for risk assessment. Dispute resolution remains essential in every controversial insurance event. How to determine whether insurance refunds are legitimate without prejudice? Car dashboard cams, IoT-driven smart home facilities, health-tracking wearables, and respective software can add useful interactive capabilities to improve insurance risk assessment. 
  5. Deep-learning algorithms for proactive decision-making. Processing large amounts of data is what insurtech has to practice routinely. Otherwise, various statistics regarding customers appear useless that can result in compromised decision-making. Big Data technologies based on deep-learning algorithms can enable insurers to keep control over the most ambivalent situations.   

The above-mentioned tech insurance trends constitute just a tiny part of numerous opportunities that digitization can offer to the insurance industry. Any insurance innovation is tightly interlinked with software development, like it or leave it. This is not a verdict but an invitation to collaborate for two groups of professionals – insurers and digital experts

Understanding insurtech systems and insurance software development

So far as we study the whole insurance history, it’s impossible not to mention modern achievements of the industry. Insurance software development is essential for entrepreneurs who want to get the clients’ attention and boost the brand’s loyalty. In the era of mobile technologies, high personalization, and quick progress, insurtech solutions become extremely useful as they facilitate interaction with modern customers.

Following the discussion about key development factors, McKinsey lists seven insurtech value drivers divided into two categories. The growth stimulus has 40% of the insurance corporations’ interest and focuses on the increase of sales and UX. The cost reduction factor handles other 60% as businessmen want to cut expenses, decrease risks and loss ratio. Technologies can solve many issues, as you see.

Driving forces behind insurance software development

Further, we will talk about insurtech understanding, insurance development, and custom products for this industry.

Insurance software definitions

Generally, it’s important to realize that the market offers two types of insurance software. The first one is used in traditional institutions and looks like classic spreadsheets (hi, Excel!), accounting tools, and messengers. We’re not interested in this old-fashioned stuff, so let’s focus on the second type further.

The brand-new software for insurance is often called insurtech as an analogy to fintech. The Insurance Information Institute lists examples of insurtech approaches: online policy handling, automated processing, personalized risk development, and so on. Thus, the mentioned software type utilizes modern technologies to boost insurance teams’ productivity.

From the McKinsey study revealed earlier, we learn that insurance development is strongly linked with innovations. The leading role belongs to big data and machine learning with 20% popularity. The usage-based insurance gets 13% and the famous Internet of Things approach has 12%. The top five is closed by gamification and robotics, each responsible for 10%.

On the charts below, you can easily check these stats as well as the overall number of innovations split into insurance industries and approaches.

Innovations for insurance software development team

Insurance development by industries

The process of insurtech apps’ creation

Now, what do you think about insurance software development itself? How it’s going on? Is it simple to get an application with all these shiny features like automation and CRM? The answer is yes but with one condition. You have to realize your company’s goals clearly. Without a proper understanding of business operations, current objectives, potential requirements, scalability needs, risks, and other pitfalls, it’s impossible to develop a suitable insurtech application.

Hence, let’s look at the development stages:

  1. Define objectives: write down core business goals, analyze the environment, get a working plan, arrange schedules, choose the vendor/developer.
  2. Think about modules: choose the features you need (e.g. contacts’ catalogs, user profiles, leads’ processing tools, trackers, policy databases etc.), set a budget.
  3. Agree on terms & conditions: discuss the desired features and tasks with the chosen development team, sign contracts and SRS documents.
  4. Get an MVP. Ask vendors to create a basic version of the product initially, deploy it, check how systems work, and ask for changes in the final version if needed.
  5. Test everything. Get a good QA team to find bugs or unexpected interface glitches, test products in real working environments, fix issues.
  6. Launch the system. Deploy the final program, set links between new and legacy apps, handle data migration.
  7. Update and support apps. Agree on additional maintenance to forget about tech problems, plan further upgrades and extensions.

All the listed processes are easier to complete when you work with a custom team of developers. Actually, devs handle all these tasks.  Long story short, the software vendors can sell you prepackaged apps with fixed sets of features or they can develop a program from scratch. Our team follows the second path, so you can get a product fully customized to your needs.

Your own insurance product

Custom applications have pros and cons, obviously. For example, you get a tailored product but should wait longer than owners of prepackaged apps. Moreover, you get a significant competitive advantage because your own software is unique and other marketers don’t have the same features. For this, you should be ready to pay the higher initial cost but it will cover nearly everything as bespoke solutions usually come with one-time payment instead of fees.

Our team creates custom programs since 2011. We focus on different industries including insurance where our clients can get modern insurtech systems designed from scratch. For example, a solution called BenefitNet brings together all stakeholders. The single online platform allows insurers, brokers, employees, and managers to get control over insurance policies and benefits.

For your own product, you can choose any set of modules focused on various managerial tasks:

  • Carriers management
  • Claims management
  • Contact management
  • Document management
  • Insurance rating
  • Policy management
  • Products management
  • Risk management
  • Task management

Insurance software development modules

We handle custom insurance development, upgrading of outdated systems, switching your business to mobile channels, maintenance of existing and recently launched apps, and business analysis. All processes are completed inside the team with strong guarantees of on-time delivery and profitability. Our software is our reputation.

If your business is located abroad, we suggest checking the article about features of outsourcing to Ukraine.


As a pre-conclusion, we offer you to check key insights in the format of questions and answers. We’ve prepared core information to help you refresh the most important things without scrolling the whole article.

What is insurance development in a nutshell?

As for the industry, it’s a process of market growth in which underwriters introduce new strategic approaches and help clients to get maximum satisfaction. On the other hand, tech insurance development stands for designing new software systems for this industry.

What is offshore insurance software development?

This process is similar to the traditional creation of applications but it’s handled by external developers. This means insurance companies can delegate specific tasks like designing of ERP or CRM solutions to foreign teams.

Still, aren’t sure about our advantages? Discover the offshore software development benefits then.

What are the primary steps of the development process?

Basically, there are five stages: planning, MVP creation, testing, deployment, and maintenance. Each step can be divided into smaller parts such as setting goals or budgets during planning or data migration during deployment.

How does the best insurance software development team look?

We opt for custom teams. Without claiming that this approach is the only viable, we think that companies that create apps from scratch can deliver more profitable software for insurers. Typically, teams should include developers, analysts, QA engineers, and a lead.

How to get insurance software development projects?

If you want to get a bespoke app, just find a reliable company that creates software for your industry. Otherwise, look for vendors of ready-made systems. In both cases, you want to find a developer with good reviews and reputation.

What are current industry trends in insurance? 

Almost all insurance innovations of present days can be rightfully covered with a common term “insurtech”. Insurtech comprises innovations based on digital technologies. The contemporary software achievements help insurers make the insurance sector more sustainable amid modern challenges. The insurtech innovations are numerous, but the following few trends reflect the hottest domains where forward-thinking insurers can find a lot of inspiration for further successful development. 

  • Micro-insurance. This coherent strategy is re-establishing the insurance market to make it more customer-centric. Micro-insurance provides more affordable policies, more graspable contracts, simpler underwriting, and faster resolution of disputes. The approach is backed by a set of IT innovations including mobile apps, cryptographically protected file storage, automated customer-care solutions, IoT-based risk-assessment ecosystems, etc. 
  • Blockchain. Distributed no-middleman control over policies, refunds, claims, and premiums is what distributed ledger technologies (including blockchain) offer to insurtech adopters. The anti-fraud capabilities of blockchain help insurers get rid of both cybertheft and insurance scammers. Digital crypto wallets allow customers to establish fairly shared insurance fund management.  
  • P2P approach. The peer-to-peer relationships promise people to disrupt the insurance market with Uber-like mechanisms of risk-sharing. Individuals can become private insurers for those who are looking for simpler and clearer insurance coverage. The P2P risk-sharing can revolutionize the insurance industry similar to how Uber does it in the taxi market. Web-based technologies of inter-personal communications are here to help. 
  • Robo-advisors. The AI-based algorithms of robo-advisors have worked well in the financial sector of investments. Insurance robo-advisors can enhance personalization in the client-insurer relationships without prejudice and negative human factors. Besides, AI-based machine-learning solutions can help insurance companies to detect any sort of fraud and scam that still remain frequent in refund accomplishments. 
  • Gamification. Turning work into play can improve the business performance of insurance companies’ staff. Another advantage of gamified solutions lies in the educational capabilities of games. They can train clients to select the right insurance policies in a fascinating manner. Customer engagement is what the entire insurance is built upon. Gamified insurance innovations can lead customer engagement to a new level. 

What are the biggest challenges facing the insurance industry? 

The insurance industry can no longer ignore the digitization that is covering each and every aspect of the modern lifestyle. Every solution has to acquire certain properties to stay viable nowadays. Mobile, distributed, touch-less, highly-personalized, remote, always-connected, and the like all belong to the must-have features to be inherent in the contemporary insurance products/services.  

Both old pains such as fraud and new challenges such as lockdown restrictions can hardly be mitigated by the modern insurance sector unless the new insurtech paradigm is fully accepted by the insurance market players. The variety of technical innovations available in the modern IT industry can reinvigorate insurance to make it meet the expectations of the modern highly digitized society. Only tight collaboration of digital experts and insurance professionals enables the insurance industry to count on further successful development. 


Let’s be honest: insurance is useful but we don’t want to use our policies. It’d be better to forget about them (and about accidents related to insurance cases) but the world is dangerous. In recent years, news about terrorists, wars, and hurricanes force more people to get insured. Hence, underwriters get benefits from this demand and increase their revenue. Looks simple, right?

We have another approach to boosting your business. Even without menacing news, entrepreneurs can attract new customers by using insurtech solutions and showing the pros of innovative personalized offers. Nowadays, growing generations are familiar with new tech, so why not speak the same language as your clients?