Insly Insurance Market Outlook: Trends for 2022
What’s the outlook for the insurance market in 2022? Insly’s CEO Risto Rossar explains his vision of how the upcoming year will affect Insurers and MGAs and what the trends will be.
Risto points out two major trends in the insurance space: the rise of no-code and low-code insurance software and insurance distribution moving from direct to Broker side.
The Rise of No-Code/Low-Code Insurance Software
This trend is coming from within the insurance software industry. At the moment, the industry is moving into the no-code and low-code space at speed. In the future, or actually already now, insurance companies, MGAs, and Brokers are able to implement insurance software. Implementation means building products and financial systems, building everything they need, like documents and workflows, without writing any line of code.
Insly is almost there. Of course, we have a lot to do and we see others moving in that direction. It’s a huge win for the insurance industry. Risto thinks it's comparable to the innovation we saw in the postal industry, when it moved from the pigeon post to e-mail. Pigeon post is slow, expensive, and unpredictable - when you send the post, you can’t be sure where it will end up. Old-school software development is similar, it’s expensive, slow, and unpredictable - you actually don't know what you will get before it's done.
No-code and low-code insurance software is different. It's fast and cheap, and you see right away what you will get out of it.
Insurance Distribution Moving from Direct to Brokers
There are still a lot of insurance products in many insurance markets that are sold through Brokers and Agents. Our job within the industry is to turn these insurance salesmen into digital superstars.
We should bring the Uber or Bolt moment into the insurance industry, so that insurance Brokers can serve their customers in a digital way.
That will help the insurance industry tremendously, because the costs and the service level in the Broker and Agent channel are too high at the moment. These can be brought down with a much bigger increase in the service quality.
Stay tuned for another post about the insurance market outlook for 2022, where Risto will focus on the challenges ahead.