The insurtech sector had to face many challenges as technology incorporation became more common. The year 2023 is expected to reflect last year’s trends and challenges.
The incorporation of technology will be the most impactful trend this year. Some technologies may assume more significance. A perfect example is blockchain. As more and more insurtech professionals realize the transformative powers of blockchain for the current insurtech industry, this year is expected to see more revolutionary changes.
READ MORE: Will Blockchain Be the Game-changer for the 2023 Insurtech?
2022 will be the first year since 2016 that we have seen a decline in InsurTech investment activity year over year.
Before now, risk capital promises were made before venture capital commitments; instead, VCs want to ensure that insurers will sit down at the table before they make a payment.
READ MORE: Insurtech Yet to Be Totally Acceptable, Here is Why
Another strong likelihood is that the massive investment into “InsurTech” that has historically been seen as a phenomenon may decline starting in 2022.
The decrease in investment further led to a change in strategies or organizational restructuring. The direct result was significant downsizing, which mainly affected redundant positions. Many of the decisions were quite challenging for the industry.