Have you heard about insurtech and the seamless opportunities it brings 18th July 2022
Technology has taken the world by storm, and new inventions and innovations every day are seamlessly becoming part of our daily lives. In this article, we will talk about the emerging technology trend of insurtech in the world of insurance and understand how it will change insurance in the coming times.
What is insurtech?
Insurtech is a combination of the terms insurance and technology. This term was coined to define the culmination of digitalisation, technology, and insurance. Insurtech is the modern-day solution to all insurance-related qualms and queries. Applying novel technology trends such as machine learning, artificial intelligence, and extensive data analysis has helped insurance make advancements in leaps.
What are the benefits of insurtech?
The benefits of technology have been countless over the years. Combine that with insurance, and you have diverse opportunities in the insurance sector. Not only has the involvement of technology made it a more straightforward and less cumbersome process for the policy provider, but it also has made buying insurance a quick and easy task for the consumer.
Technology intervention has aided the insurance provider in calculating the overall credibility of the customer. The mammoth task of manually analysing and decision-making by policy providers has taken a back seat as technology like machine learning has made the process faster and more accurate.
Insurance companies can now target a wider audience and cater to their specific needs while sitting miles away with the help of technology. Factors such as customer acquisition and onboarding, global expansion of business, and enhancing the user experiences help companies draw more happy customers. It also has allowed insurance companies to handle and process claims efficiently.
When it comes to the customers, what better than sitting in the comfort of your home and buying online general insurance? Thanks to AI, insurance prices are tailor-made per the customer's needs. This gives a chance for companies to ditch their standard pricing methodology and stick to a more dynamic cost analysis.
What are the components of insurtech?
Insurtech has a variety of components, but it can be broadly divided into two components –
1. Technology-based:
● Artificial Intelligence: The process of automation to yield better and more accurate results.
● Machine Learning: The collection, collation, and analysis of vast chunks of data to determine a pattern.
● Internet of Things: Objects with sensors or processing abilities that can aid in risk assessment.
● Apps: For a better customer relationship experience.
● Blockchain: To improve security and protect sensitive information.
2. Solutions based:
● Appetite Solutions: Helps to find the best policy for a client across existing policies in the market.
● Data Solutions: Easy access to personal actionable data for respective users.
● Payment Solutions: Digitised payment solutions help for a better customer experience.
● Quoting solutions: Automated quote generation, thus reducing the waiting time for customers and policy providers.
What are the applications of insurtech?
1. Customer verification:
The KYC or "know your customer" is a process that all insurance companies must follow. A huge amount of data needs to be processed to ensure the legitimacy of the customer. Insurtech has made the process hassle-free by storing data directly from the issuing authority.
2. Claim management:
With automated analysis of claim documents, standardised records evaluation is maintained and later verified by agents or policymakers.
3. Detecting fraud:
Insurtech can verify policyholders' claims and crosscheck any duplicate transaction or third-party interference to ensure that no fraudulent claims are made.
These were a list of some key elements of insurtech. As mentioned above, technology is a boon to customers and policymakers alike and can benefit both parties. Customers can also use general insurance plans to safeguard their assets with the best coverage. Checking out online general insurance plans can be a smart way to explore various options and select the ones with more advantages, good premiums, and the ones that will give the best returns on your investment.
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Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.