Insurtech is one of the emerging areas right now. By leveraging data analytics, machine learning, artificial intelligence, and other emerging technologies, Insurtech has helped insurance companies to provide services such as risk assessment, claims processing automation, fraud detection, customer service automation, and personalized pricing models.
InsurTech has already made a significant impact on the insurance industry by making it easier for customers to access information. In addition to this, InsurTech also helps insurers reduce operational costs by automating processes. So, let's learn about Insurtech insights, common examples of Insurtech, and how they're used by the industry!
1. What is Insurtech? How is Insurtech reshaping insurance?
The rising sector of technology known as Insurtech, which stands for insurance technology, has completely changed how insurance companies conduct business. It's basically a term describing the use of innovative technologies to improve business processes in the insurance industry.
With the help of Insurtech, insurers are now able to provide more individualized services to their clients and make better decisions based on data-driven insights. Due to the need for insurance businesses to remain competitive in this industry that is changing quickly, Insurtech is growing in popularity among these organizations.
Many clients are unsatisfied with the old insurance models' lengthy, onerous processes in comparison to other businesses and goods. For example, nowadays, individuals prefer to purchase their travel insurance with a single tap of their finger rather than sifting through mountains of paperwork. Startups in the insurance technology space are aware of this and seek to address it.
Here are some other ways Insurtech is changing things up:
- Using data from wearables and social platforms to create more tailored policies
- Bringing together disparate policies and products onto one, easy-to-use platform—like mobile apps
- Harnessing AI to take on tasks that were formally done manually
2. What new technologies is the insurance industry adopting?
a. AI and ML in Insurtech
Artificial intelligence and machine learning in Insurtech are rapidly gaining traction. AI and ML technologies can help insurers to process data more efficiently, identify trends and patterns, automate underwriting processes and generate insights from customer data. This will not only allow insurers to reduce costs but also create a better customer experience.
- Personalized services: Finding the most appropriate suite of coverage options or quotes based on customer data. For example, Allianz employs AI tools to determine which products and services are best suited to individual customers.
- Chatbots: Automated systems that use natural language processing to manage customer inquiries and requests via phone, text, and other messaging apps. Large national insurers like Humana have already begun to use AI-powered chatbots.
- Competitive pricing models: Obtaining a holistic understanding of risk by using data from non-traditional sources.
b. Blockchain Technology
Blockchain Technology offers a higher level of security, which helps insurance companies in managing data and processes. Here are some key features of blockchain in insurance:
- Fraud prevention: To identify dishonest or illegal activities.
- Smart contracts: To make the sharing and storing of information more efficient.
- Tracking private information: To protect the confidentiality of financial and medical records.
What exactly does blockchain help the insurance industry?
- Faster claims reimbursements:
With the advancement of blockchain technology, insurance companies now have the opportunity to streamline their claims process and improve customer experience. This technology can help insurers automate or efficiently process claims, resulting in faster reimbursements for individuals.
The use of blockchain in Insurtech is on the rise, as it allows insurers to quickly verify and store data related to claims. For instance, if all parties involved in a claim were nodes on a blockchain, such as the policyholders, beneficiaries, hospitals, funeral homes, and life insurance companies, the claims process might be initiated immediately as soon as a hospital records a death. This helps them reduce costs while improving accuracy and transparency. As a result, customers can expect faster payments when they make a claim.
- Peer-to-peer insurance:
Since blockchain enables companies to capture and track data on a more detailed level than was possible before, it will likely allow insurers to gain deeper insight into policyholders' daily behavior. Because of this, policyholders may see their insurance rates based more heavily on their behavior, such as the distance and speed they drive, the number of steps they take in a day or the number of hours they spend in their house each week.
Probably, when leveraging any technology, enhancing the user experience and upgrading current systems are the most important components, and so does Insurtech. The goal of many businesses is to connect clients with the ideal product as soon as feasible. Customers benefit from avoiding difficult forms and long hold times on the phone. You'll probably find Insurtech to be the most user-friendly alternative and really easy to use even for the elderly.
If you want to build an Insurtech app, just contact us via firstname.lastname@example.org for more information. SotaTek offers Insurtech Application Development Services that can bring you amazing apps. After hearing your requirements, our experts will discuss and propose the most cost-effective solution. We will all design and develop Mobile Apps with your end-users in mind, practical quality assurance on real devices to ensure the best performance.