8 Key Technologies Powering Insurtechs
Just like fintech, the disruptor of the finance sector, insurtech, is taking over the insurance world with the power of the industry with its innovative AI technology.
To put it simply, insurtechs are insurance companies that are taking the support of new technologies to offer advanced, more user-friendly to the current digital-savvy customer base.
What is Insurtech?
Insurtech refers to technological innovations that aim to make the insurance industry more efficient and cost-effective. Based on the term fintech, insurtech combines the words "insurance" with "technology."
It aims to reduce costs for clients and insurance companies by developing new products and services. Additionally, it strives to improve customer service and operational efficiency.
Top Technologies Supercharging Insurtech World
The Top technology that is driving the insurtech world are:
Artificial Intelligence (AI)
The use of artificial intelligence allows a few tasks that had previously required human interaction to now be carried out independently through technology. In the past, customers had to speak with a representative to have queries answered; now, interactive communication with chatbots may allow customers to get help without speaking to a human. This cuts the cost by reducing the man force required, while also making services prompt and available 24X7.
Machine learning is also a part of artificial intelligence but is more refined. It extracts historical data and compiles predictive models. Information is distributed using these models, which can be set up to have a feedback loop. A model that learns from future data can constantly assess how to calculate optimal premiums as per the demographics or risk profiles based on future data.
Besides improving claims processing, machine learning can automate it as well. By making files digital and accessible through the cloud, preprogrammed algorithms can be used to analyze them, improving processing speed and accuracy. Besides claims, this automated review can also be utilized for risk assessment and policy administration.
According to various reports, Chatbots will power 95% of all customer interactions by 2025. With AI and machine learning, chatbots can interact seamlessly with customers, saving both employees and insurers time. In addition, customer service bots can walk customers through policy applications and claims processes, reserving human intervention for more complex situations.
A rapid change in customer demand has made innovation one of the top priorities for insurers today. Carriers can create personalized insurance products based on users' data captured via telematics. Traditionally, auto insurance was based on a pay-as-you-drive model, where the premium was based on how far customers drove. As a result of technological innovation, insurers are now working on pay-how-you-drive models that will provide discounts based on driving skills.
The insurance industry has been disrupted by technological advances that demand innovative solutions, intelligent experiences, and faster processes.
Your car can be fitted with monitoring devices that track various indicators, accidents, and rash driving, including speed, location, and more. These are all monitored and processed using analytics software to determine your insurance premium.
Since the advent of digitalization, mobile apps have become a must-have for customers and their lifestyles. With these, you can quickly launch personalized premiums based on the location of your customers as well as other important data. In addition, monitoring the performance of these applications allows companies to measure factors such as user engagement, compatibility, data security, and conversion. Due to this, apps are going to play such an important role in transactions, becoming the point of contact between two parties.
Blockchain technology improves trust between insurers and insureds by reducing transaction expenses and improving data security standards. In addition, by utilizing this technology, human resources can be freed from repetitive tasks, claims can be processed faster, and data collection quality can be improved.
Internet of Things
The Internet of Things (IoT) is another insurtech innovation that depends on physical innovations. Although the Internet of Things is a digital concept, it relies on physical goods and software that interact with one another. Insurers now commonly provide devices that measure vehicle speed, manoeuvrability, and driving habits that can be used to reward good driving habits or penalize bad driving habits. Insurance companies can now use the smallest details to base premiums, whereas this level of information has never been available before.
Quantitative analysis and data mining are key components of the technology. It is possible to detect fraud using data analytics. As a result of predictive analytics, fraud detection can be improved, resulting in fewer claims payouts. Enhancing risk management through analytics of fraud and claims transactions is possible.
Turtlefin, with its top-notch insurance technology, has become the disruptor and pioneer in creating transparency, ease of use, increased accessibility, and more. With the use of engineering, design, research, and operations, Turtlefin is making buying insurance policies, claiming them, and comparing prices all under one roof. Using insurance technology and innovation brings the best for policy buyers.