Raised by (if I may put it this way) family relatives called FinTech and RegTech, InsurTech combines both ‘insurance’ and ‘technology’ to sum up the use of technology innovation designed to automate efficiency in the current insurance industry model.
The same way as in other industries, the powers of technology are changing the industry’s landscape by enabling new services, products and opportunities. What does it take to succeed in this changing environment? How do InsurTech companies affect insurance brokers? There’s that sort of recurring line across various industries: will technologies take away the jobs from us, people? Oh, the fear of the unknown.
First of all, let’s be clear with definitions. Perhaps the verb “to affect” is not the right choice of word in our case. “To help” would be a better pick here, and we’ll explain it later. So before plunging into details, let’s check some technological novelties that are changing the insurance industry as a whole.
- AI and automation will have a significant impact on business outcomes in fields such as customer experience, operational efficiencies, cost optimization and market competitiveness. Artificial intelligence will also influence the emergence of new business models.
- The blockchain technology will provide secure data management across the multitude of interfaces and stakeholders in a way that without losing the integrity of data. It will affect the management of insurance business operations from A to Z, or, if to be specific, from underwriting to claims processing.
- Robotic Process Automation (RPA) will provide better data processing.
- IoT devices and sensors will help insurance professionals to improve risk assessment and price policies based on real data in real time. This way, customers will be more likely to buy policies to prevent possible losses.
- New accounting systems for doing calculations and reporting.