Much like Fintech has revolutionized the financial industry through the infusion of tech services into traditional processes to automate and improve financial services delivery, Insurtech is changing the way businesses regard insurance practices. From the combination of the words insurance and technology, the resulting concept redefines what this already robust industry needs to remain relevant, agile, and sustainable over the coming years. You will wave goodbye to traditional insurance as you see where Insurtech predictions will be taking the industry in 2021.
What Does Insurtech Mean?
The new approach to insurance relies heavily on artificial intelligence, big data, and the internet of things. Whether through wearables, smartphone apps, online policy handling, and automated accident or claims processing, the use of technology to make the insurance industry more efficient is at the heart of this concept. The collection of data and expert analysis through AI and machine learning improves the consumer experience and improves access to services. Personal insurance and business options have seen costs lowered, faster speeds in delivery of services, and more coverage options with the merger between tech and insurance.
What Are Some Insurtech Examples To Watch For?
As 2021 moves forward, there are several expectations regarding Insurtech. From apps to options, here are a few things to watch for over the coming year.
Embedded Insurance Options
Shopping for the right insurance policy can be a time-consuming and frustrating task. In response to the definite need for coverage but lack of enthusiasm to go out and buy it, more providers will offer policies in tandem with product purchasing. Home mortgage servicers are offering bundled home and auto coverage through partnering insurance providers, creating a single transaction and seamless interaction between products and needed protections.
Increased Automated Processing
The claims process still relies heavily on human involvement, but several tech startups have found a way to automate many of these cumbersome duties. Consumers also benefit from increased automation, as cell phones can now be used to register a claim, submit evidence of damage, and schedule needed repairs. Call centers are supporting human efforts with voice AI to deliver faster, more efficient customer service. Automation improves the customer experience while reducing the insurer's cost of providing that service.
Protection Focused on Cybersecurity
The year 2020 saw new ransomware and phishing attacks on businesses of all sizes, increasing the demand for better cybersecurity strategies. Cyber insurance will lead the way as a foremost component of a risk protection plan. Small businesses often struggle to afford the premiums of this specialized insurance, but the cyber insurance market is seeing a new wave of startups in response to the increase in cyber threats. In addition to creating more access to affordable coverage, startups provide risk protection that seeks out and addresses potential liabilities right away. It could spur the development of real-time risk management and coverage in other areas of business down the road.
The insurance industry becomes less of a mystery with the involvement of technology. These trends and the other areas of change will make coverage more affordable, more effective, and more accessible.
About 3XY Insurance Solutions
3XY Insurance Solutions provides innovative solutions and consulting services to insurance executives looking for a competitive edge. We develop exclusive programs and products; leverage markets, partnerships, and talent; and capitalize on digital capabilities to accelerate growth and increase profitability. Contact us today at 215-322-5497 and see if we can grow your insurance business and improve its profitability.
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