An intense period of technological and digital innovation has revolutionised an array of industries, with the insurance sector easily one of the biggest beneficiaries.
The benefits of insurtech
Specialised insurance technology – also known as insurtech or insuretech – has been proven to increase the efficacy and efficiency of insurance companies without disrupting productivity or workflow.
Insurtech’s significant growth is largely a result of the evolution of artificial intelligence (AI) and means that applications operating using machine-learning systems now have the ability to process large quantities of data. There are many insurtech applications that insurance businesses can utilise, including customer-facing applications, small business policies, and highly personalised policies for everything from motor trade insurance to home cover.
Customisable insurance policies
Detailed data sets have opened the door for highly-customised insurance policies. Previously, companies would use a few data points to set their premiums; today, as the proliferation of internet-connected devices that collect a range of personal data has increased, there is a range of new information that can be used to build a much more detailed picture of every policy-seeker.
A person seeking motor insurance might find that an insurance broker such as Quotemetoday can deliver much more competitive quotes if they are willing to install a telematics device that will transmit a variety of data, including instances of hard braking or turning and speeding. This data will then be used by insurance companies to determine personalised premiums.
The claims management process
As insurtech has strengthened the connections between policyholder and insurance company, the claims management process is now much more efficient. In many cases, chatbot technology can verify policyholder details, send the claim through any relevant fraud detection algorithms, and ensure the reimbursement process is started.
Insurtech is designed to deliver accessible and user-friendly applications; therefore, much of the stress that old systems caused has been removed. Facial recognition technology is directly embedded into many claims portals, which allows for efficient identity verification and ensures that processing times are kept to a minimum. This seamless interaction also improves accuracy, which is good news for both insurance companies and policyholders.
As technology becomes smarter, the potential for insurtech applications in the near future is immense. From combining different policies into a single policy to delivering financial savings and further efficiency, the future is bright for the insurance industry.