The insurance industry faces numerous challenges in the rapidly changing environment, including energy transition, circular economy, urbanization, and digitization. The industry has also been impacted by external variables such as the COVID-19 pandemic, inflation, war, and the political environment. Insurance companies must adapt to the pandemic's aftermath and overcome economic hurdles, the potential risk of sustained inflation, ESG concerns, rapidly evolving consumer trends, and changing purchase preferences. Despite the benefits of digitization, insurance companies still need to improve operational expense management, reduce the CACs (customer acquisition cost), increase the CLTV (customer life-time value), improve unit economics, and reduce loss ratios. The InsurTech market has grown significantly in recent years, with a significant increase in the number of deals and financing volume, driven by optimism and a recognition of the importance of transitioning to digital business models.
