The world has been going through a rather topsy-turvy time. The time that has seen the rise and fall of businesses across the globe. With digitalization becoming an ever-growing integral part of the world. There’s no doing away with the fact that the future is digital.
An industry that was quite satisfied with not having to deal with the rise of digitalization was the insurance industry. A relatively stable industry that did not have to worry about making too many changes to its approach. Since, their line of work was consistent, reliable, and standardized for the most part.
In came insurtech — the inculcating of technology into the world of insurance. A move that wasn’t quite welcoming in the insurance market. The reason was quite simple. Insurtech was advocating for a digitalized approach to the workings of the industry. An approach that they were quite unaware of.
What Is Insurtech?
Broadly defined, insurtech is the use of innovative technology to cater to insurance shoppers and deliver not just savings to them. Also, embark on a journey of efficiency by cause disruptions in the current model used by the majority of insurance carriers.
More often than not, insurtech companies go on to deal with complex data and invoke mechanisms that traditional insurance carriers do not quite work with. The result of this is more streamlined data that is better suited to the companies needs and helps when grouping individuals and assessing risks.
With the rise of insurance technology trends in the business world, Insurtech companies are not just heralded for their better-curated pricing models but also due to their ability to use artificial intelligence to customize packages and embark on coverage processes without having to deal with middlemen/brokers. In other words, it’s a win-win for everyone (except insurance brokers).
Even insurance customers have now come out to advocate for not just active protection but also the ability to participate in a “pay as you go” model; both of which help to ensure that customers get their money’s worth.
Insurtech companies have three distinct types:
Companies that offer specialized services to insurers are not only diverse but offered at each separate stage.
Think of these as “shops”, since their main goal is to help traditional insurers sell insurance online.