Insurtechs bring Sweeping Changes to the Insurance Industry

By Insurance CIO Outlook | Monday, August 05, 2019

InsurtechsInsurtech firms are helping forge a bond between technology and the insurance industry.

FREMONT, CA: The insurance industry has seen the emergence of technologically proficient insurtechs. The traditional insurance companies have adapted to modern technology as well, but the process has been slow. In the meantime, consumers have evolved, and there has been a gradual shift in the kind of services they expect. All of these factors taken together have led to the insurtech companies having a leading edge when compared to conventional insurance firms.

It is the age of digital technologies and excellent connectivity. Smartphones have become widespread, prompting a demand for mobile services. Technology has the potential to make services extremely convenient by reducing processing and waiting time. It is also making customer service proactive and enhancing engagement. What customers expect is that everything, including queries, form fill-ups, policy details, and even filing claims to be available online. The insurtech companies have been able to be at the top of these changes and have excelled in many aspects.

As a result of adopting high tech solutions, insurtech companies have created a very competitive ecosystem with the customer as the central beneficiary. Being an industry that deals with customers directly, the insurance industry should always keep looking for opportunities to drive regular contact with clients. It is a general observation that in traditional insurance firms, the clients barely come in contact with the service providers. This inspires trust and improves brand value.

Risk management and identification capabilities in insurtech companies are excellent. By creating links between real-life activities and metrics, the companies are being able to identify and predict risks better. Hence, the opportunities to make profits are higher. Telematics monitors are being put to use to determine the overall safety and behavior of drivers, and wearable technologies are finding use in monitoring client health metrics in real-time. The Internet of Things is making it easier to keep a tab on factors that can make pricing transparent and personalized. 

Many complex processes like claim filing and damage evaluation that generally take several days have now seen improvements, thanks to the rapid application of technology by insurtech companies. By prioritizing innovations and technologies, insurtechs are showing the way ahead for the insurance industry. 

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