Insurtech, which stands for insurance technology, is a growing industry transforming how insurance companies operate. Insurtech companies use technology to make it cheaper for their customers and increase efficiency. They can also help you find deals on life insurance or auto insurance.
Insurtech is a combination of the words insurance and technology
It refers to the new ways of doing business in the insurance industry that use technology to make insurance more efficient, affordable, and accessible.
Insurtech is a broad term that encompasses many different businesses and processes within the broader industry. Some common examples include:
- Software apps for mobile devices that help individuals calculate their life expectancy or identify an appropriate car coverage plan based on their driving habits;
- New technologies for collecting data about customers’ health status or environmental conditions;
- Platforms for sharing information between insurers
The history of insurtech started in 2000 with a company called Esurance
It is often used in conjunction with data analysis and machine learning to create more accurate risk profiles and reduce costs.
The history of insurtech started in 2000 with a company called Esurance, which John Garbutt and Tom Gentry founded. Before Esurance’s launch, most people had to choose between paying high premiums or being denied insurance altogether because they didn’t meet certain risk criteria.
Esurance used technology to make it cheaper for their customers. They collected data on where their customers lived so they could determine their risk profile accurately. Then, the company would sell them a policy at a lower price than other carriers would offer.
Esurance was an early example of insurtech, but it wasn’t necessarily successful. The company was acquired by Allstate in 2012 for $1 billion after struggling financially from its start-up days.
Another early example of insurtech was an app called Trōv, which helped people insure single items for short periods
Trōv was founded in 2014 and worked by helping people insure single items for short periods. Trōv uses data analysis to create more accurate risk profiles and reduce costs, making it a great example of the technology’s potential applications.
Using data analysis to create more accurate risk profiles and reduce costs
The correct data can also help insurers to improve risk assessment and claims processing. Data analytics can look at how many accidents have occurred on a particular stretch of road or highway, as well as the number of claims filed by drivers who use that road. Companies can then use this to identify where there are significant risks for drivers, and adjust premiums accordingly.
In addition, insurtech companies may also be able to cater their products and services more efficiently by leveraging data analysis.
Data analysis can also help insurers improve customer service through enhanced interactions between them and their clients. Examples include:
- Improving mobile apps to provide more relevant information at any given time.
- Insurance companies can increase customer satisfaction without spending additional money.
Finally, some insurtech companies leverage data analysis capabilities to reduce fraud across multiple areas.
The future of insurtech is bright, and we’re looking forward to seeing what it has in store.
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