Insurers evolve and reinvent themselves. As technology is mounting, the whole industry cannot afford to stand still. The sheer volume of companies has already seen InsurTech benefits.
Inspired by the term Fintech, InsurTech definition combines the words "insurance" and "technology". Thus, Insurtech extracts value from old school insurance but has a hands-on approach. It creates new, more convenient, and unbiased insurance products.
AI, Big Data, Internet of things catalyze InsurTech growth. Global InsurTech Market revenue is valued at 5.48 billion in 2019 and is expected to reach 10.14 billion by 2025. This trend comes with an appetite for tech innovation in the insurance sector.
Accenture surveyed 539 insurance business and IT executives worldwide. 81% of them acknowledge - technology has become an inextricable part of the human experience. Technology helps improve assessing and processing applications and claims. With its help, new insurance products are being developed, while traditional ones can be managed in new ways.
What do InsurTech companies do?
Clients want quick underwriting decisions and claims adjustment. They see no point in navigating piles of paperwork. They are not willing to deal with sales agents who are driven by commissions, not the customers' best interests.
Traditional insurance companies do not have such flexibility and capabilities. They have many restrictions and complex bureaucratic ties. Julien Breteau, as a co-author of "The InsurTECH Book", explains:
"By 2025, the consumer landscape will be predominantly digital; insurers refusing to adapt to the new workplace trends won't make the transformation and will eventually perish".
Modern insurance technology companies are the next link of the insurance evolution. Top InsurTech Companies capture several advantages at once. They use AI in their services pricing, claims, and fraud detection. Insurance and technology create a business tool that increases savings by reducing labor costs. On the other hand, it allows us to process more claims and acquire new customers using popular communication channels.
InsurTech is in the customer’s pocket since its platform is a gadget; its connection is the Internet; its priority is customer convenience. Clients can now research, compare policies, and buy online whenever they want. There's no need to travel to a local agent. Insurance becomes personalized and focused on individual interests without any approximate client groups.
Social networks, wearable gadgets (from GPS tracking of cars to the activity trackers on our wrists) help InsurTech companies to receive relevant information in real-time. AI insurance gathers and refines data sources, making it possible to choose the perfect program for the specific customer.
Using inputs from all manners of devices, InsurTech firms can finely portray the groupings of risk. Thus, InsurTechs make their products to be priced more competitively.
From the customers' perspective, there is also a list of virtues. Wearable tracking tools and client-oriented apps have discovered new benefits from their insurance. Insurance tech space gives customers better conditions based on their own traits.
Insurance tailored to the specific customer's needs and behaviors put them in charge of their own fees. As a result, customers enjoy lower insurance premiums.
What's more, insurance technology reduces insurance claim processing time. It ensures immediate communication with the insurer at any time. InsurTech insurance promotes clear and straightforward conditions.
Besides, modern insurance also provides excellent conditions for small and medium-sized businesses. Now they can get several types of insurance that can be developed for each specific need. InsurTech companies offer business packs for organizations with high turnover, help to manage cyber risks, and cover all employees with simple and affordable insurance.
Change for the best
InsurTech ecosystem is mushrooming, bringing straightforward products and streamlined customer experience. Insurers all over the world recognize the importance of innovation. Yet, it is quite challenging for this scrutinized industry, like insurance, to respond to the InsurTech boom.
Of course, changing the way insurance organizations operate is a big undertaking. It requires significant efforts, but those that make this shift can see a considerable drop in expense and time to market. That's why you might need some expert help in constructing your innovation DNA. With AI Services, you'll grab a slice of the insurance market built around digital technology. We will deliver a simple, transparent, and scalable, app-based user experience for your customers.