This near-universal smartphone ownership, as well as top-end phones costing over £1,200, and the UK facing a sharply escalating phone theft crisis, is driving up consumer demand for gadget insurance, as the latest figures from the Financial Conduct Authority (FCA) show. Indeed, the number of gadget insurance policies in the UK increased from 7.87 million in 2023 to 8.46 million in 2024, representing annual growth of 7.5%.

The financial opportunities are clear, yet they aren’t without growing pains.

In the gadget insurance market, Gen Z and millennials have become a key growth demographic. Coverage for smartphones and other devices is often the first policy that young customers will purchase, providing insurers with a prime opportunity to build brand loyalty early.

Those positive brand perceptions rely on providing fast, transparent, digital claims journeys akin to the instant services that younger, tech-savvy individuals use every day. However, insurers must balance providing leading customer experiences with a growing fraud challenge.

According to FCA General Insurance Value Measures data, UK gadget insurance gross written premium income increased from £496 million in 2023 to approximately £604 million in 2024, representing a 22% year-over-year increase, which in large part was driven by rising device costs and a typical claims’ frequency of 5-15%. With close to 8.5 million policies in place, that translates to hundreds of thousands of claims per year, with an estimated 660,000 in 2024.

With a fraudulent claims rate of 15%, approximately 99,000 fraudulent gadget insurance claims may have occurred in 2024 alone. With the UK market seeing typical payouts of £435 per claim, this would translate into a financial impact of more than £40 million in just one year. That’s before the operational costs of processing those claims are factored in.

The dual challenge facing gadget insurers

Stamping out this fraud is naturally a leading priority for insurers. However, in the UK market, this can be difficult to achieve.

Since ‘lost’ claims typically do not require a police report or crime reference number, stolen and damaged phones are often reported as ‘lost’ to avoid having to submit either police documentation or the device itself for inspection and repair.

Equally, while insurers have historically used rules-based profiling checks such as document review, assessing claims by requesting proof of purchase receipts, and confirmation with the network provider of where and when the device was last used, such methods are becoming increasingly at odds with both modern fraud and the expectations of modern customers.

Advances in AI, for example, have made it easier to generate fabricated invoices, receipts, and supporting materials. At the same time, documentation checks often involve back-and-forth communications that can frustrate customers. Manual validation is slow and bureaucratic, while Gen Z customers expect the same instant decisions they’re used to with other digital services.

As a result, insurers are left facing a two-pronged challenge. Gen Z customers expect rapid, often same-day resolutions – particularly as we all virtually run our lives on these devices. Yet, insurers cannot afford to relax fraud detection controls despite the fact that they are slow, resource-intensive, and limited in their ability to detect modern forms of opportunistic gadget insurance fraud.

A further complication lies in the fact that many legacy fraud checks are both reactive and evidence-led. They focus on whether supporting documentation exists rather than validating whether the claim itself is genuine, which creates scope for fraud to creep in. A customer may provide a valid invoice or a plausible account of events, while still misrepresenting how or when a device was actually lost or damaged.

The argument for modernised assessments

There are several structural safeguards beyond document reviews in place.

The Recipero database, for example, allows insurers to validate unique IMEI numbers against sales and recycling databases, as well as other insurers to mitigate the risk of duplicated claims. Network data requests can also verify when a phone was last used to validate claimed loss dates, while exclusion or ‘waiting’ periods can prevent customers from making a claim immediately after buying an insurance policy.

However, these measures are not foolproof. Consumers can still exploit timing gaps by taking out contracts and claiming losses shortly after the exclusion period ends.

Insurance is a two-way trust relationship between the consumer and the insurer. The insurer needs to trust that the consumer is providing accurate information about the device at the point that the policy is purchased, and in the situation that a claim needs to be made. Equally, the consumer needs to trust that the insurer is charging a fair price for the cover that is being provided, and that any claims will be handled expediently and fairly.

Clearly, fraud committed by a proportion of consumers challenges the trust element. Meanwhile, existing fraud detection processes clearly aren’t entirely effective, and they also create unnecessary friction and delays for genuine customers when they most need their claim handled efficiently and quickly
One way to address the dilemma is to look outside the industry at how other sectors address this ‘trust screening’ challenge, with one innovative approach being voice-based risk assessment.

Human vocal characteristics associated with risk are universal, regardless of language, geography, culture, or other demographics. By analysing these voice-based characteristics through a short series of simple yes-or-no questions, insurers can rapidly identify potential indicators of misrepresentation in real time, meaning that genuine applications for a policy and claims can be fast tracked with those consumers receiving a much more elevated level of service.

Rather than treating every claimant as a potential fraudster until proven otherwise, many insurers are adopting technologies designed to quickly identify low-risk customers and allow straightforward claims to move faster, while reserving deeper investigations for the smaller number of cases that genuinely warrant additional scrutiny. Technologies such as voice-based risk assessment, AI-assisted claims routing, and document verification tools are transforming insurance assessments, deterring fraudulent behaviour, while accelerating the resolution of low-risk claims.

Crucially, new approaches align with Gen Z expectations for near-same-day resolutions by enabling insurers to balance speed with robust fraud detection.

Ensuring regulatory alignment

Ultimately, this is about addressing fraudulent claims that create disproportionate financial damage, either by prompting those customers to think twice, or by identifying them more effectively. These technologies detect risk in ways that traditional methods cannot, focusing on confident triage where potential risk is flagged, while remaining transparent and defensible under regulatory scrutiny.

With that said, as with any technology adoption, implementation must be guided by responsibility as well as effectiveness. This is especially important in a large, regulated, and operationally complex market where decision accuracy, trust, and defensibility directly impact financial performance and reputation. The FCA’s Consumer Duty, for example, expects regulated companies to have controls to protect customer data, and prevent fraud from arising from misuse of PII.

For insurers, the challenge is not simply to prevent fraud, but to do so in a way that preserves the customer experience. In the case of Gen Z, that means meeting demands for speed, convenience, and fairness, with this demographic being quick to disengage when such demands aren’t met.

Long term, that is the key to building the trust that underpins sustainable, mutually beneficial customer relationships.

The post Meeting Gen Z demands while preventing fraud in gadget insurance appeared first on International Finance.

Ripe for change
According to the J.D. Power 2020 Auto Claims Satisfaction study, there was a 22 percent decrease in car insurance claims since the pandemic in the US. In the UK, we have seen a few insurers like Admiral offer cash refunds to customers as a result of travelling reduced miles. While it is a nice gesture, it is not one reflective of the disparity of the situation—both historical and present. That is because the insurance industry has been ripe for change for years—long before Covid became part of the vernacular. Motor insurance, in particular its pricing models, are seen as opaque and unfair, and because it is mandatory if you own a car, motor insurance still feels like a tax rather than a purchase decision. According to this 2018 study (BritainThinks) by the Association of British Insurers, seven in ten (70 percent) insurance customers agree that, no matter what they do, their insurance premiums seem to go up every year.

There is no doubt consumers are overwhelmingly dissatisfied with the level of service they are receiving so the industry is at an inflection point. It’s a situation not dissimilar to that of the banking sector some years ago. Early reticence towards online channels was quickly squashed that means—over a decade on—the industry is a poster boy for delivering a seamless engaging digital experience in everything from account opening to payment methods.

Dynamic digital experiences are sought after
Not least because customer expectations have increased markedly, people now rightly expect insurance products and services to measure up to the experiences they enjoy with their other consumer purchases. They expect to be able to review their usage data in real-time, like they do with their fitness apps, access financial statements like they do with their banks (Monzo) and communicate like they do through messaging apps. Today’s insurance customer wants a dynamic and engaging digital experience.

Instead, what they are getting is cumbersome and one-dimensional products because the insurance industry has been slow to adapt to technology innovation. Efforts to digitise and optimise customer experience have largely failed. Insurance has rested on its laurels for too long. Insurers should already be considering how to embrace consumer trends in their products for both the short and long term. In many cases, this means catching-up to what is current and urgently putting measures in place to scale and pivot their products and services to respond to ongoing changes in driving habits and digital consumption. Insurers simply won’t be able to survive if they continue to treat customers as they have done up until now – they can’t afford the shockingly low retention rates that they’ve got away with until now.

This is because a holy trinity of mobility, customer expectations and democratised data are dictating innovation. New rating engines and new products are only part of the solution. How insurers interact, engage, communicate and manage data will also be critical. Customers will want to know how answering a set of questions can truly reflect their premium price fairly. The data that can be provided at the onset (and during the life of the project) from open banking integrations, activated vehicle safety features, use of assisted driving features and usage data are all elements that will contribute to future policies. Insurance companies urgently need to put the customer first or they risk losing market share and becoming irrelevant.

Not seeing the big picture?
Traditional players and those insurers unwilling to meet the speed and scale of change are not going to retain the level of customers they have had before, which then by proxy means they will need to spend more money to go out and win customers back. The answer lies in evolving to offer a product that will retain customers and evolve the wider industry at the same time. As an example, we have seen years of insurers concentrating heavily on achieving a high-ranking on price comparison sites, which has led to a situation where, largely, the industry has a commoditised product with little differentiation or USP.

Yet, we are witnessing major macro changes to motor insurance in the form of partially assisted driving on the road and the rise of electric vehicles (EV). Anyone who has an EV is immediately penalised on price, in some cases quite heavily, even though EVs are safer on the road. This is essentially due to fear of change within the insurance industry and a misguided desire to keep the status quo. Because there currently is not enough volume for insurers to insure EV drivers by their normal statistical models, they have tried to ignore the situation, rather than develop the innovative solutions that are needed (and will undoubtedly happen anyway).

Obsessed with price comparison sites and a race to the bottom on pricing, insurers have neglected to see the bigger picture. Many simply haven’t developed the right mindsets, cultures and approaches to respond to changes in consumer needs and to get on the front foot through innovation. They’re putting themselves in a position that the only way that they can stay competitive is to lobby governments not to allow these types of technology on the road. And that’s why, rather than focusing on getting ahead of new (and some would say inevitable) technology innovation and collaborating on solutions to potential challenges, some insurers and legal firms appear to be focused on stifling and delaying progress.

Insurers should also be taking an active role in encouraging policyholders to consider the micro (air pollutants) and macro (greenhouse gases) environmental impact their car usage has. It is estimated that 36,000 deaths every year are caused by air pollution in London. This has led to the introduction of the ultra-low emission zone, which will expand from 25th October 2021 to create a single larger zone up to the North Circular Road (A406) and South Circular Road (A205). Insurers have no reason not to be helping educate drivers about the pollution their cars emit and helping them to consider how and when they drive. They could be advising on the best times of day to use their car and the best routes to take to limit environmental impact. Intervention, in support of governmental actions, can help to save lives.

We are at a nexus point with car technology of changing user behavior, changing customer expectations and changing technology. And right now, progress is being held back because of the insurance industry. Businesses in the insurance industry need to make a choice and pick a side—they can either be an inhibitor or an innovator but, in the long-term, there’s only going to be one winner.

The post Innovation in global insurance appeared first on International Finance.

So the big question is—what is the reason for AI and insurance to go hand in hand? In the past, carriers have been conservative in technology adoption compared to those in the banking industry—creating an obvious gap between technology adoption and transformation in the industry until recently.

Now insurers are individually and collectively seeking to innovate their operations, products and solutions to strengthen the global insurance market at large. For example, disruptors are entering the current market scene and changing the standard model of micro insurance.

Imagine, how will it play out if Google or Amazon forayed into the insurance industry? The existing insurance companies would not be able to sustain a massive transformation overnight, especially with a limited use of technology. For that reason, it is essential for insurance companies globally to adopt and use AI to cope with industry setbacks and unprecedented changes in the future.

AI is a game-changer for insurers
In fairness, insurance companies globally have realised the potential of AI to synchronise the insurance ecosystem and streamline processes. This in turn will help them to work on the existing layers of complexities to develop a sustainable customer-centric approach in the long-term.

Traditionally, an insured customer will have two main points of contacts with the insurer. First is the policy submission followed by claim notification. These are core processes which give carriers a unique advantage to understand customer requirements first hand. It is worth noting that outsourcing the claim process is not very savvy.

AI has now become a game-changer for the industry. AI-enabled chatbots are being implemented to simplify the claim process run by insurers. In translation, this touchless insurance claim process eliminates excess human intervention and can seamlessly report the claim, capture damage, update the system and communicate with the customers without any supervision.
For insurers, the customer-centric approach is no longer an option. So it is disappointing to think that there are insurance companies that still remain short-sighted in their approach while trends across customer demographics are rapidly changing.

New model is on the rise
How can technology concretely help insurers in practice? In this context, AI can help monitor and predict risks by giving customers indications on how to reduce risk. For example, having healthy behavior can prevent health problems, and in turn, reduce the premium rate. The final purpose is to reduce the frequency and severity of losses over time.

Because insurance is a highly regulated industry, carriers have been slow in adopting this technology compared to other industries. That said, they are now rethinking their customer engagement and in this evolution, insurance is ideally shifting from its current and traditional state of ‘detect and repair’ to future ‘predict and prevent’, transforming every aspect of the industry during this process. In another example, road accidents can be reduced as a result of using autonomous vehicles—and health damages can be lowered owing to healthy behaviours. Also, home and property damages can be prevented through the adoption of IoT devices.

Developing an ecosystem approach
In recent years, technology products, even the most advanced and AI-driven ones, have important limited value when used alone—but can substantially increase in value when used with complementary applications. This is known as an ecosystem approach. In a nutshell, there is no one-size-fits-all technology or AI software which can solve all the problems on-the-go. Multiple technologies and technological methodologies, if combined together, can provide tangible benefits thanks to complementarity.

Skepticism slows AI adoption
It is worth noting factors that slow down insurers in AI adoption and where does their resistance to change come from?
Skepticism is definitely a relevant variable and is the typical resistance to change. Disruption can easily polarise reactions and behaviours: convinced promoters and supporters vs. strong and inflexible detractors.

However, one of the most deep-rooted causes to resist change in the insurance industry is culture. To innovate, insurers have to experiment, pilot and redesign their processes and offerings. Insurers have always focused on avoiding failure. However, evaluating the risks in detail which can be a time-consuming but worthwhile activity will make a difference and increase the pace of change.

All these factors should be part of every insurer’s coherent analytics and technology strategy that addresses all aspects of the business, with a particular attention on both value creation and differentiation.

The post The new reality of AI in insurance appeared first on International Finance.

The new medical policy — the Compulsory Private Health Insurance System, also known as Dhamani — is designed to provide a basic insurance coverage for expats, their families, and tourists in the Sultanate. Sheikh Abdullah bin Salim Al Salmi, CEO of Capital Market Authority, told International Finance, “Dhamani is seen as a means to an end, rather than being an end in its own right. Dhamani is a multi-payer system, where employers or sponsors pay for the health insurance of their employees or sponsored-individuals.”

Currently, the Capital Market Authority is working with relevant institutions to implement the council of ministers’ decision to introduce Dhamani in gradual phases. In practice, each phase will be introduced only after ensuring that the previous phase was successfully implemented.

“Dhamani was designed with the intention to facilitate proper health insurance for employees and visitors. Inclusion of families and dependents of expatriate workers in Oman is subject to contractual obligations between employers (or sponsors) and employees,” he said.

In recent years, the insurance industry in Oman has witnessed tremendous growth. The health insurance industry for the first time achieved a bigger market share in terms of total insurance premiums compared to the motor business, local media reported. Last year, the industry accounted for 33 percent of the total premiums, with a significant growth rate of 30.5 percent between the period 2011 and 2018.

So far, the industry’s robust growth has been attributed to two reasons. The public is fully aware of the importance of health insurance, and another reason is that employers in the private sector are willing to provide medical covers to all workers in an attempt to attract and retain talent.

Now the Oman government’s plan to implement Dhamani simply highlights the possibility of a much favourable health insurance environment for Omani citizens and reflects upon the scope for the industry’s growth in the coming years. “Upon examining the presence and extent of coverage of the private healthcare facilities, it has become evident that we need to encourage the establishment of more healthcare providers within stipulated patient’s rights and quality care standards,” Sheikh Al Salmi explained. Currently, the number of employees in the private sector covered by health insurance is 450,000, and the number is expected to reach above two million with Dhamani in place by the end of this year.

Standard & Poor’s GCC Insurance Outlook 2019 report found that Oman’s insurance market will grow up to 10 percent this year. The forecast in part depends on Dhamani and its phased rollout which is aimed at incrementally increasing the utilisation of medical services at private healthcare facilities.

Investment banking advisory firm Alpen Capital in its GCC Healthcare Industry report said that the healthcare spending in Oman is expected to reach $4.9 billion in 2022. The healthcare expenditure on outpatient and inpatient services is predicted to grow at an annualised average rate of 10 percent to $1.5 billion and $2.3 billion. The bed requirement is expected to grow at a CAGR of 3.2 percent through 2022. This means that there will be a demand for more than 1,100 new beds in order to have a capacity of 7,937 beds.

It seems that Dhamani has come just in time to ease the anticipated burden on Oman’s private healthcare system. Although Oman’s healthcare industry is small, it has outshone many of its peer countries because of firm political will and dedicated workforce planning. The country adopts a free market economy approach, where investment is key to driving competition and market growth.

“The Capital Market Authority believes that providing the right incentive would attract more investments in the insurance industry. For example, mandating the health insurance and a streamlined (electronic) claims and payment system, would provide the right incentives,” Sheikh Al Salmi explained.

The Standard and Poor’s report observed that intimidating factors such as cut-throat competition, high operating and regulatory costs, volatile investment returns, and strict accounting standards would have negative side effects on insurers’ earnings in 2019. In order to stabilise these factors, the government “would require establishing the rules for a fair competition and equal playing field as manifested by strict monitoring to minimise market manipulation,” Sheikh Al Salmi said. In saying so, Sheikh Al Salmi is pointing to the fact that the health insurance industry is in need of increased provisions amid stringent standards and regulations to lower the weight on insurers’ earnings.

In fact, “The prime benefit of Dhamani is the provision of effective and consistent means to ensure compliance with employers’ duties vis-à-vis health and medical care as outlined in the labour law,” he added. This approach is more forward-looking for insurers in Oman who are eager to secure their position in the overcrowded medical insurance market.

With Dhamani, insurers will have an opportunity to tap into Oman’s extensive market potential to unlock premium growth.   “Dhamani will help converting hidden operational costs to a single cost that can be budgeted and monitored systematically. It is hoped that such cost will go down in time, contingent on claim ratio,” Sheikh Al Salmi explained. The Capital Market Authority is also looking to bundle the care components of other insurance products such as life and repatriation, as well as workers’ injuries and compensation. In general, this will facilitate better risk management and reduce costs for insurance companies.

Dhamani might end up hurting the insurance industry and the private sector if the pricing is not appropriate. For that reason, Sheikh Al Salmi said, “The minimum required basic health coverage necessitated careful selection of coverage and development of network criteria, bearing in mind employers’ cost tolerance range.”

Dhamani is already claiming victory in small measures by stretching out its benefits to expats and Omani citizens in the private sector as well.  Sheikh Al Salmi went on to note that there will be an even distribution of healthcare services for Omani citizens. The scheme is anticipated to boost capacity in the healthcare system by reducing the current traffic and easing the burden on healthcare facilities, which in turn will lead to the possibility of extending medical services to other segments as well.

In the case of expats, Dhamani will provide them with smooth access to healthcare services through the adoption of simplified procedures. “This is guaranteed by the adopted policy of no compromise on quality of care or delivery of employer’s duty of care, as well as continuous monitoring and refinement, especially as the Capital Market Authority has already identified roles and duties for insurance companies, and healthcare providers,” Sheikh Al Salmi concluded.

The post Why the Oman government introduced Dhamani appeared first on International Finance.

Unsurprisingly, the Middle East, with its majority Muslim population, has always been considered one of the world’s most important markets for driving the growth of global Islamic insurance, although insurance has not been as historically commonplace in the Middle East as it has been in Western markets.

Within this context, Takaful is seen as key to increasing consumers’ appreciation for insurance and delivering on customer expectations. So what is driving the Takaful market in the Middle East?

The Gulf leading the way

Mostly led by the Kingdom of Saudi Arabia and the UAE, the growth prospects for Takaful remain strong in the GCC. The Takaful growth rate in these countries is well ahead of the conventional insurance market in the region. Moody’s data showed GCC Takaful firms’ published results for 2018 expanding at around 7 percent year-on-year. 

This is being driven by several factors, including regulatory changes as well as economic activity linked to planned events such as Expo 2020 in the UAE. Indeed, recent regulatory changes are a key driver to the future success of the Takaful industry here in the region. Not only has the spread of mandatory motor and medical cover increased the demand for Islamic insurance products, it has also had a beneficial effect on underwriting profitability and is expected to continue to do so.

While Takaful insurance covers general insurance, as well as life, medical and health, motor and education plans, approximately half the written business in the GCC is made up of property and accident insurance. Life insurance has also seen a surge in demand and is becoming an important component of both estate planning and diversification. Therefore, regulatory changes, such as making other types of insurance compulsory, has the potential to significantly boost the industry over the coming years.

The keys to further success

There are significant opportunities for Takaful operators in Middle Eastern markets, and primarily in the GCC, to provide sound Shariah-compliant protection that is in line with consumer needs and stands up to the international conventional insurance model. In fact, in the more mature Islamic finance economies such as Malaysia and Saudi Arabia, Takaful is price competitive with equivalent conventional insurance products, and has a significant proportion of non-Muslims as customers, especially those looking for ethically sound products.

Nevertheless, while conventional insurance and Takaful might have similar economic drivers, Takaful players must distinguish themselves and double down on their Islamic principles rather than try and imitate their conventional counterparts. For example, developing differentiated brands and specialised products where new segments are served can still be priced for value. Takaful companies should in fact leverage the ethical differences and the spirit of mutuality they offer through their risk-sharing model and Shariah-compliant investments. All while maintaining price competitiveness and product diversity.

Then there are specific verticals where we see strong potential growth. Health Takaful is a rapidly growing sector in the Middle East again driven by the trend towards obligatory health insurance. Life Takaful penetration, at present, also lags far behind general and health Takaful, as Muslims tend to have greater inhibitions when it comes to life insurance. However, if Takaful companies can develop innovative and Shariah-compliant family Takaful products, it is reasonable to assume that life Takaful could grow even more substantially.

Meanwhile, there is a shortage of Re-takaful capacity and this has left Takaful insurers with the dilemma of having to reinsure on a conventional basis. So strengthening Re-takaful operators would also assist the growth and expansion of Takaful insurance.

Rapid technological changes and innovations will similarly help evolve the Takaful industry. Takaful firms are challenged with adapting new strategies to provide reliable cash flows and developing innovative protection and saving products. For this sector to remain competitive, Takaful operators should embrace technology in all operational, sales, and marketing strategies. One form of innovation is to explore new business models and partnerships at the level of bancassurance by tying up with Islamic Banks and taking advantage of the arising opportunities that Fintech and Insurtech present. Some of the UAE based Takaful insurance providers have also now invested heavily in the technological advancement and innovation of their product offering and service delivery.

Stronger together

Finally, the industry is also seeing a challenge in the form of increased capital requirements, such as currently under consideration in Saudi Arabia. Such factors mean that consolidation in the Takaful sector looks likely and what’s more, sensible. The combined Takaful groups that we expect to emerge will likely have stronger and more sophisticated businesses, positioning them to further drive the industry as a whole.

The post Turbo charging Takaful growth in the Middle East appeared first on International Finance.

For a long time, the traditional approach to an insurance business model had been embraced by everyone because it tends to humanise interactions between both customers and agents. As things are, nearly every sector is looking to automate and digitise its business model: from sharing information to customer interaction to business collaboration. Leaving behind an exception: The insurance sector has reflected a slow progress in digital disruption. For this and other purposes, the sector is swiftly warming to the idea of digitisation.

Digitalist Magazine noted that according to IDC, “enabling contextual and meaningful interactions across the customer journey—and across multiple digital channels,” is a chance for insurers to reinforce their core business models. For example: Insurance platform Slice has come to the realisation that by automating its processes—there is a fair possibility to trim down 65% of business cost, reported Forbes. The company has INSURANCE built a wholesome website to bring data to customers. The process is quite simple—one-click to draw any relevant information. As the McKinsey report reads: By and large “Automation can reduce the cost of a claims journey by as much as 30%.” For companies, the symptom to not understand the fundamentals of convenience that customers want is a major obstacle, or worse it becomes increasingly challenging to produce attractive numbers.

It appears that “leading companies are using data and analytics not only to improve their core operations but to launch entirely new business models.” Companies such as MassMutual, Grange Insurance, Nationwide and Safeco are analysing data to comprehend customer lifestyle for the sake of personalising offers and ensuring an interactive experience. As discussed by IDC, a data-rich world is more accurate to assess individual risk against historically established case records because the former solely seeks to understand real-time consumer behaviour patterns and individual choices.

“Insurers of the future will play more of a risk avoidance role and less of a risk mitigation one,” Andrew Rose, CEO of US insurance comparison website Compare.com, said. Such experts’ argument for the sector going digital has been proven exact by real instances. MassMutual is carrying out a data mining exercise on social media to classify customers more sensibly. The outcome will help to position products and services with more relevance to the market.

Overall, modern insurance companies are understanding the new challenges and opportunities that alter the sector’s presence in the market. This points to the digital forefront. This means, insurers can “price and underwrite more accurately, and better identify fraudulent claims,” the report stated. To the question of how they can apply this exercise, the answer is, by using this force they can offer clients more enhanced products. Case in point: “auto insurance that charges by the mile driven.”

The post Insurance, the next digital sector in the Internet age appeared first on International Finance.