Insurtech Industry Trends in the UK in 2023

03rd March 2023

Last week, we headed over to Google HQ at Kings Cross for the Google Cloud Insurtech & Insurance Community Event, alongside a range of other B2B and B2C companies to explore the transformation of the industry over the last few years. The insurance industry has undergone a significant transformation and the emergence of insurtech companies has disrupted the industry in unimaginable ways. The UK is one of the leading countries in the insurtech space, with many startups and established companies leveraging technology to create change. In this article, I share the top industry trends that will shape the UK market in 2023 based on some of the key takeaways from a talk by Hamel Soni, Senior Industry Head, Insurance and PCW at Google.

Search trends in insurance are changing

There have been some notable changes to the way people search for insurance products over the last few years. Consumers are moving away from simple, one/two word searches like ‘car insurance’ and opting for more specific question based searches like “can I get insurance for an old car?” This change in behaviour means search AI needs to evolve to ensure people receive the results that match their more specific enquiries.

There has been a decline in search terms for some of the main insurance products for consumers including ‘Travel’, ‘Car,’ ‘Home’ and ‘Life’ etc. “Home insurance” searches had dropped by 6%, the only type of insurance which had dropped less was “car insurance”. This doesn’t necessarily reflect a decline in appetite for the products, rather, people are searching for insurance products with more detailed queries, using longer, more specific search terms to find what they need. This chart shows a conversion funnel of some of the different search ‘types’:

Other notable trends:

• There has been a 443% increase in watch time on YouTube videos linked to the term “save energy”. That’s 4 times greater than searches for “cash stuffing” (a means of budgeting effectively).
• There was also a 229% increase in people searching for a “side hustle” to maximise their income potential. 

*Google Data from Aug-Dec 2022

Personalised insurance products are on the rise

One of the significant trends that will shape the insurtech industry in the UK in 2023 is the shift towards personalised insurance products. With the help of big data analytics, insurtech companies can leverage customer data to build customised insurance products that cater to the specific needs of customers. These companies can use AI and machine learning algorithms to analyse customer data, including their behaviour, lifestyle, and preferences to create tailored insurance products. This trend will enable insurtech companies to offer more personalised and relevant insurance products, leading to much more empowered customers making informed choices.

The context of the UK cost-of-living crisis

It’s essential to note the impact of the UK cost of living crisis on the insurtech industry. The cost of living has been on a steady rise with the effects of the pandemic and the war in Ukraine exacerbating the situation, causing a rapid increase in wholesale energy prices. When it comes to insurance products, customers are becoming more price-sensitive and are seeking more value for their money. Travel and pet insurance were the most affected by people searching to cancel in 2022 to reduce their monthly outgoings. However, home insurance made up just 8% of those searching to cancel, suggesting people view the home as an important asset to protect – and value the added peace of mind when something goes wrong.

Insurtech companies will need to find ways to provide more affordable insurance products that offer comprehensive coverage to customers and in order to succeed, companies must leverage the evolving technology to create cost-effective insurance products that cater to the needs of customers, without sacrificing quality.

Conclusion

The Insurtech industry in the UK is evolving at pace, driven by technological advancements and changing customer expectations. The trends highlighted in this article outline the direction the industry is taking and provide insight into the opportunities and challenges that insurtech companies will face in 2023. With the right strategies and investments in technology, these companies can position themselves for success in the years to come.