Insurtech (short for “insurance technology”) is a broad term that refers to a variety of rapidly evolving technologies utilized in the insurance sector. Insurtech refers to any technology utilized by an insurance firm to improve the efficiency of its operations.
Any new technology added to insurers’ operations to save money or streamline processes is referred to as insurtech. Insurtech is a subset of fintech, which is a new technology used to help finance organizations improve their operations and bottom line. Insurtech, like fintech, encompasses a vast spectrum of technology, making it impossible to pinpoint a single distinguishing feature or application.
Insurtech improves the backend process via chatbots and smartphone apps, for example. Client support staff are no longer required by insurance companies to respond to every customer concern. Many can be answered by chatbots, which respond to inquiries automatically at all hours of the day and night. This saves the organization money while also streamlining the customer service experience.
Apps for smartphones also improve the consumer experience. Instead of printing photocopies of licenses and other documents, customers can take a picture with their phone and submit it using the app. Both the consumer and the company save time and resources as a result of this.
Types of Insurtech
Here are some of the most popular sorts of insurtech that you might see an insurance firm use. Some of these pieces of technology will be phased out in favor of newer technology, while others will evolve and continue to be an important part of insurtech.
Artificial intelligence (AI) is a word that refers to software that can perform human-like functions including reasoning and learning. AI insurtech includes chatbots, which are simply computer programs that can connect with clients orally or through text.
Machine learning, which is a subclass of AI, is another sort of insurtech. Machine learning, as the name implies, is a technique that allows machines to “learn” over time. It makes use of algorithms to simulate neural networks in the brain. Machine learning enables computers to learn by extracting patterns from raw data rather than following pre-programmed instructions.
The Internet of Things (IoT)
The Internet of Things is another sort of insurtech (IoT). Ordinary equipment (such as refrigerators and televisions) that are connected to the internet are referred to as smart machines. Telematics, the use of electronic devices in automobiles to gather, receive, store, and transmit data across a network, is one example of IoT. Many companies with large fleets of vehicles install GPS-enabled gadgets in their vehicles. These devices can detect the position of the vehicles and track driving speeds, braking patterns, acceleration, and other behaviors. Data from the devices can be used by commercial auto insurance to offer discounts, increase safety, and investigate incidents.
Apps for Smartphones
Insurtech smartphone apps can be created for clients, enterprises, or both. For people on both sides of the transaction, insurance company applications have simplified the procedure.
Drones are used by several insurers, particularly property insurance. Drones can investigate a property where sending humans in would be dangerous, such as rooftops and disaster regions. Drones could also be useful for casualty insurance, such as checking and photographing an accident scene. This technology can also assist in making your workplace safer.
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