Insurance Technology – Transform How Insurance Is Done

Insurance Technology is a growing segment of the global tech industry that explores ways to improve the way insurance is done. Using new technologies, insurtechs offer solutions that improve the efficiency of the insurance industry and increase customer satisfaction.

Insurtechs are the driving force behind the metaverse continuum, which is a collection of technologies that elevates customer expectations and transforms how insurers do business. They also help the industry become more agile, more profitable, and more transparent.

Smart Contracts, Blockchain & Drones

InsurTechs leverage smart contracts to execute on pre-defined criteria and conditions in order to release insurance proceeds or verify the identity of a new client. By leveraging blockchain technology, smart contracts can run on a distributed ledger system that is immutable and unalterable. This allows for unbiased, neutral parties to evaluate the criteria of an insurance contract.

For example, insurtechs like Etherisc use blockchain to automate the process of releasing insurance proceeds or verifying an insurance client through smart contracts. By gathering data from third-party providers, smart contracts can automatically perform tasks based on outcomes that are compared against the information gathered.

This can reduce or eliminate the need for human intervention, thus reducing costs and improving customer service. In addition, insurtechs may decrease fraud by utilizing big data and analytics to monitor patterns and detect fraudulent activity.

Telemetry-based insurance policies and claim processing

Insurtechs use telemetry services to collect data from a wide range of devices, including smart homes, health-based wearables, and connected vehicles. These data streams can help insurers price policies, determine appropriate discounts and gather evidence in claim filings.

Digital Advice & Claims

Insurance companies can engage with customers more frequently and offer advice in real time via mobile-enabled devices. Advisory software like PolicyGenius, HeyBrolly and Bauxy can help customers find the right coverage and solve any pain points in advice or claims that might arise.

By digitizing “moments of truth,” such as when customers need advice on their insurance, insurtechs promote better customer relationships and increase awareness of the value of coverage. These solutions are based on a data-driven approach that combines big data, machine learning and robo-advisory technologies to create more individualized and efficient products.

These solutions provide a more accurate view of the customer’s financial situation and risk behavior, which helps insurers predict default, bad debt and prepayments. They also offer a more personalized approach to underwriting and risk assessment.

Microinsurance and Usage-Based Insurance

The Internet of Things is providing insurers with new data sources to dynamically price policies based on observed behavior. For instance, Root car insurance provides discounts if consumers change their vehicle’s mileage or choose safer routes. This is possible because of the way that onboard devices track a car’s usage and tendencies.

This can reduce the cost of insurance by enabling insurers to identify and price policies that are more relevant for individual customers. For example, if a driver uses a smart-home system to manage energy and air quality, the company can determine that they are less likely to have an accident or claim.