TECH BUYER Aug 2019 - IDC Innovators - Doc # CA45343819
IDC Innovators: Canadian Insurance Admin Automation, 2019
By: Robert Smythe, Jason BremnerResearch Vice President, Industry and Business Solutions
IDC Innovators are emerging vendors with revenue <$100 million that have demonstrated either a groundbreaking business model or an innovative new technology — or both. This IDC Innovators study profiles Baseline Telematics, ClientDesk, Encircle, and IMETRIK that offer solutions that enhance insurance admin processes and allow the effective handling of new solutions like usage-based insurance (UBI). The five insurtechs identified in this document are focused on increasing the efficiency of insurance administrative processes and facilitating the introduction of new solutions across the P&C industry. The industry is striving to move away from processes that require extensive manual intervention and traditional solutions to digital solutions and innovative products that have the potential to transform it. These include offering usage-based insurance and automating claims management processes and client interface enhancements.
The challenges that insurtech companies face in having their solutions adopted is the cautious way changes are made in the Canadian insurance industry, the large number of small brokerage companies, and the tendency of clients to prefer personalized services over do-it-yourself solutions. This need for hand holding has been exacerbated by the complexity built into many of the insurance solutions and processes.
"The future potential of the companies reviewed in this document will be dependent on the ability of the insurance industry to have policyholders accept self-serve processes," says Robert Smythe, research associate, IDC Financial Insights. "This will require determining how to make self-serve processes the clients' preferred interface just as the banks have managed to achieve."