Latest HSBC research highlights insurance is an industry ready for disruption, and envisages significant benefits related to technology-enabled solutions to financial inclusion and affordability issues.
In the report HSBC outlines the various ways in which insurtech can impact an insurer's business model including fraud detection, providing accurate health assessments and driving advice in claims processing - especially with data garnered through wearable technologies and telematics in vehicles.
However, HSBC states it desires a greater understanding of the profitability impacts of various technology enabled-solutions. HSBC said it could envisage significant benefits from capitalising on the big data advantages held by insurers, as well as using real-time data such as vehicle telematics to assist with pricing insurance products.
Additionally, the report underlined the willingness of the Chinese market in adopting these new ways of doing business - stating a higher on-line take up rate could lead to lower customer acquisition costs and better claims experiences in the Chinese market.
These claims seem to echo statements of recent years about the uptake of fintech in China. In 2015, KPMG partnered with H2 ventures to release the Fintech 100 report, ranking leaders alongside 50 emerging companies. Seven Chinese companies were listed, including eventual winner ZhongAn Insurance, an online property insurance service.