Insuranceciooutlook

How Fintech Impacts European Insurance

By Insurance CIO Outlook | Wednesday, December 18, 2019

Insurance companies are on the verge of investing in the merits of fintechs, intending to succeed in their digital initiatives.

FREMONT, CA: Technological developments and the changing expectations of customers are the main drivers of innovation. The insurance industry, tasting the nectar generated by financial technology, is widely adopting fintech for its operations. Here is how fintech is influencing the European insurance industry.

The insurance sector was less enthusiastic as far as technology was concerned. From purchasing an insurance policy to raising a claim, the insurance processes were time-consuming, resource-driven, and paper-intensive. Technology has addressed these concerns. European insurance providers today are meeting their customers in the online market place. Fintech has created an ecosystem that is ripe for exponential growth. Consumers today are purchasing online, and fintech has made it possible to replicate this experience in case of insurance. With a few clicks, providers can avail insurance instantly for their customers. Fintech has enabled a productive user interface, and friction-free claims purchase journey. This has changed the way customers perceive insurance as a product, as a service, and as an industry.

Insurance premiums are traditionally based on certain generic factors. As in, a car insurance premium depends upon car's make, model, age, location, and many other factors. With fintech, insurance firms can access data that will shift the pricing model from generic to specific. Fintech will also help in risk assessment and customized policy pricing.

in insurance must be holistic. Customers are interacting with online insurance providers through their website or mobile app. From customer acquisition to servicing, technology can enhance efficiency and lower costs. The entire insurance ecosystem needs an upgrade as far as technology is concerned, and fintech is playing a pivotal role in integrating technology across the functional ecosystem.

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