OCTOBER 20188Vertafore suggests Insurtech is a term to be applied to the numerous facets of technology that are disrupting the insurance space. They cite specific examples of smartphone apps, consumer activity wearables, claim acceleration tools, individual consumer risk development systems, online policy handling, automated compliance processing, and others. Their definition and focus is on the disruption that Insurtech brings to insurance. In contrast, my belief is that it is the changes in insured and claimant expectations that are the driving forces behind Insurtech. Those individuals and companies focused on developing or implementing "disruption" are missing the underlying phenomenon. There is little new to the insurance or the corporate structure of the insurer.In virtually all states, the department of insurance approves the coverage documents available to consumers. Coverage documents are promulgated by advisory organizations or internally by larger carriers, and, regardless of the type of insurance, e.g., fire, automobile insurance, products liability, etc., not revised often. In fact, revisions to policies are generally made when need for clarification is discovered in litigation over a specific Insurance Disruption, Insurance Innovation or maybe it's only Insurance Evolution!IN MY OPINIONBy Joe Petrelli, President, Demotech Inc.
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