What is Insurance Technology or InsurTech?
Insurance technology or InsurTech is any innovative technology, system or process that will enable to; enhance efficiencies, streamline processes, detect fraud, squeeze out costs and optimize functions of current insurance industry business models.
Insurance Technology will replace the existing systems, processes and
strategies with superior attributes of technology-based solutions.
What Are The Opportunities And Use Cases Available For Software Development And Data Analytics in Insurance Technology?
The Insurance Industry is in the process of big Changes. This change isn't just going digital but also taking use of the huge amounts of data collected by customers.
Need for customer specific policies, emerge of new competitors enhance in machine learning platforms is transforming the industry.
Consumer
expectations are shifting as well as how businesses intend to meet customer
needs. The arrival of InsurTech platforms is increasing the pressure on
traditional insurance firms.
Big Data Analytics will be the name of the game which provide insights in company
operations and performance from predicting consumer behavior to accurately
forecasting ROI of Marketing campaigns.
What Are The Current Industry Trends in Insurance?
Key
areas Covered in our next post:
•
Machine
Learning for Insurance
•
Predictive
Analytics for insurance
•
Smart
Contracts for insurance
•
IoT
(Internet of thing) for insurance
• Artificial Intelligence for insurance
How does data analytics and Insurance technology benefit insurers and Its Stakeholders?
According
to Fortifier Insurers and interested parties
can enjoy the below benefits by incorporating Insurance Technology.
Chart
shows how Data Analytics would benefit insurers and stakeholders.
·
A
60% increase in fraud detection rate.
·
40-70
percent saving on claim processing and management.
·
90%
increase in claim processing efficiency on non-emergency claims.
·
50%
reduction in policy admin workloads (system can gather previous policies done
on similar needs sooner and adapt it accordingly)
·
30%
Increase awareness and access to value added services.
·
80%
prediction on large loss claims. (define consumers according to risk
categories, and predict how likely/frequently would they claim)
Are InsurTech Startups Taking Over The Insurance Industry?
Most Insurance giants are currently Incorporating technology to their business models in-house or partnering with InsurTech startups to remain competitive in the Insurance industry.
Both these types of firms have pros and cons in deriving the most from insurance Technology blue oceans. Startups has the flexibility in business processes, technology and expertise to thrive but lacks sustainable financing and reach.
On the Other hand, established Insurance corporations have the has
the sheer size, funds and people but lacks the technological expertise and
flexibility in the business process to thrive.
The
way I see it, both these entities could profit by partnering and collaborating with
each other to gain synergism with each other’s Pros to create win-win situations, other than
competing for dominance.
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Q&A
According to your opinion. How will
the Insurance industry landscape transform with Insurance Technology?
Please Comment Your Ideas Up For Discussion Below
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