Insurance is something that you hear about on an almost regular basis these days. From car insurance to home and health insurance, you can practically cover almost everything for the right price.
The insurance industry is a growing market. In 2017, the insurance industry in the US garnered premiums totaling 1.2 trillion US dollars, with roughly the same amount of contributions coming from life & annuity and property & casualty insurers.
On a more global scale, gross premiums generated by the insurance industry from 2000 up until 2017 have amounted to 5.5 trillion US dollars, according to a report by Statista.
The high level of growth and profitability are what seem to be attracting many people to dabble in the insurance industry. More and more insurance companies are cropping up; even banks have been known to dip their toes in by selling insurance to their patrons.
The Rise of Insurtech
For the longest time, the insurance industry has remained stagnant, with very few changes to the way things are done. But everything else in the world has changed, especially as a result of how fast technology is evolving. Facial recognition technology, for example, is now being used by law enforcement and chain retail outlets to improve existing security measures.
With people becoming more and more digitally connected, it makes sense for businesses to follow where their consumers go. Smartphones, tablets, and even wearable tech can all be harnessed to communicate with service providers–insurance providers included.
This is exactly what insurtech is trying to do. An offshoot of fintech, insurtech set out to change the business model that insurance companies are currently using. Case in point: Artificial Insurtech Startup is an insurtech company that is using cloud-based tools to collect customer data.
Having already captured the data and stored in the cloud, many applications that insurance companies use to process claims, file policies, and even record payments can all be done more efficiently.
Insurtech doesn’t just use the cloud. Recent tech concepts like big data and artificial intelligence are being utilized by similar insurtech companies like Artificial to streamline the business of insurance.
The Impact of Insurtech
So what does integrating all this tech do for the insurance industry?
For one, insurance companies will be forced to step up their game. Insurance companies are used to handling volumes of information, but can’t process them quickly enough. To validate your insurance claims, insurance companies follow Web 2.0 processes where a human has to interact with machines.
Insurtech uses distributed databases and artificial intelligence, innovations similar to what Web 3.0 already uses.
Upgrading insurtech also allows insurance companies to provide better products. With all the data available to them for each customer, it can be easier to come up with more customized, personalized insurance policies that really address each individual’s needs.
While certain types of insurance like car insurance seem like a must-have, life insurance policies still carry a stigma; having customized policies may attract more people to get life insurance policies.
Insurtech is a growing niche that businesses can and should take advantage of. Technology isn’t going away anytime soon; the best thing to do is to roll with it and get with the times.
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Source: CEOWORLD magazine
Author: Alexandra Dimitropoulou