A Deeper Look Into InsurTech

 

Hello there! 

Welcome back to the collateral growth blog. 

I hope you have been smashing your goals this week.

Today, we will continue the conversation on Insurtech. I hope you found the last one very insightful. 

Today we will be going deeper into this conversation. 

 

Insurtech is used to more effectively process claims, evaluate risk, process contracts, or underwrite policies. Insurtech is similar to fintech, as both leverage technology to bring solutions that are game-changing in each respective traditional industry.

Here are a few advantages of InsurTech;

Insurtech improves customer experience. By leveraging technology, customers are more engaged in selecting their coverage, understanding their needs, and seamlessly getting personalized service. Instead of having to travel to a branch or speak to a representative which could take the whole of your day. Insurtech makes it super easy to attend to your insurance needs as quickly as possible. 

Insurtech improves efficiency. Without having to wait for business hours or an available representative to attend to users, many insurtech companies empower users to quickly access the information they need without drowning in processes.

Insurtech gives room for individuality. The fact that information gathering and data processing is now easier to do thanks to the many new tools that are now available to better understand each user’s true needs. This not only improves pricing but delivers more reliable, consistent coverage based on the historical data of each user.

Insurtech improves flexibility. Modern insurtech offerings are more flexible to choose from based on the preference of each user. Instead of needing to lock into long-term arrangements, insurtech is more likely to give individuals specific coverage for a specific need over a specific duration.

A few tools that have helped the process of InsurTech to be more seamless are;

• Artificial inteligence 
• Automation
• Blockchain 
• Drones
• IoT (Internet Of Things)

What Insurance Areas Does Insurtech Solve you ask?

• Claims Management
• Underwriting
• Contract Execution
• Risk Mitigation

Let's talk about traditional insurance and how these two co-exist. 

 

Traditional insurance companies relied on brick-and-mortar locations that necessitated manual labour. That means, to get insurance, you have to walk through the doors and physically speak with a representative and fill out some paperwork and other things. InsurTech is tackling this issue by creating a seamless process this by allowing users to be able to get insured in a few clicks in the comfort of their homes. 

With traditional insurance, some people pay more than they should based on the basic level of data used to group people. Among other things, insurtech is looking to tackle this data and analysis issue head-on. Using inputs from all manners of devices, including geolocation tracking of cars (ETAP is a big player in this)  to the activity trackers on our wrists, these companies are building more finely delineated groupings of risk, allowing products to be priced more competitively.

But the thing is, some customers may prefer face-to-face interactions with a dedicated insurance agent they've gotten to know for years. Some people prefer that one on one explanation on how to go about things and they may need someone’s neck they can hold if something goes wrong.

Other customers may prefer to self-select their own policy that can be cancelled using an app. Insurtech simply offers a different method of delivering insurance coverage that traditional insurance may not have been able to offer. Whether one is better than the other is simply a matter of consumer preference, honestly.

I believe that both can partner together and co-exist to make the insurance process seamless for their customers,

We would stop here for today. I hope this was helpful.

Let me know what other industry you want to learn about. 

Till next time.

Franny.