Insurance is an aspect that no matter what industry you function in, you will require at some point or the other. However, traditional insurance can be time-consuming and might not even provide the coverage you’re looking for.
When you’re considering going to the next level and making insurance a more efficient component for your business, consider signing up with innovative insurtech companies. If you’re wondering what exactly insurtech is and how it can benefit your business, keep on reading.
What is Insurtech?
The insurance industry is not full of innovation and change. Perhaps, that’s why many businesses tend to get insurance plans that don’t fully cover their requirements and are not catered for their model.
Insurtech seeks to change the conventional insurance industry and bring innovation to simplify and make processes more efficient. It utilizes innovative technology to transform old processes and revamp them to fit everyone’s requirements. With insurtech, it’s not only the businesses that benefit but also insurers.
Utilizing various technologies in conventional insurance processes has made it more cost-effective and efficient for all parties involved. Some ways that they have revolutionized the insurance industry are:
You might have gone on a website and noticed that a chat box appears right away. It can appear to simply greet you or to ask whether you require any help. Intelligent chatbots utilizing AI are extremely common today, whether for a business, social media, or any other purpose.
For the insurance industry, these chatbots can reduce the need for mass-hiring customer service agents and be a cost-efficient way of ensuring that customers aren’t confused. It can also increase customer interaction and increase customer retention rates.
Chatbots can be designed for every plan specifically or the entire insurer comprehensively, depending on their requirements.
The smartphone market in America is one of the largest globally, and when you’re looking to expand your reach, visibility, and accessibility, there’s no better way than an app. A smartphone app designed specifically for your insurance and can make it easier for customers to use your service will be convenient for them and your insurers.
Innovative insurtech companies have also introduced scanning components in these apps, which can make it easy for customers to upload documents and for you to get started on the insurance process. Payments, history, different plans, and more can be accessed directly through the app.
The insurance industry holds some of the most comprehensive data available today for various industries. However, the data is not leveraged correctly or efficiently, which makes it hard to use for any purpose.
Machine learning, along with artificial intelligence, is used to go through hundreds of datasets available with insurers. After comprehensive analysis and observations, insurers can use the data reports for:
- Risk modeling: to predict the level of risk in the future from a particular company or in general
- Fraud detection: Identifying fraudulent behaviors that aren’t obvious to analysts
- Claim processing: Automated claim reporting and processing
- Demand expectations: Using past data to predict future demand from particular sectors, sections of people, and more
Utilizing the Internet of Things
Still being tested in various industries, the Internet of Things (IoT) is an innovative concept that can be used for better efficiency in the insurance industry. Many businesses operate in multiple locations and have numerous vehicles. GPS-tracking can be connected to IoT in these vehicles covered by insurance.
It can then measure speed, distance, and more when processing claims. In this way, insurers can also better analyze accidents and insurance claims trends.
Many insurers have difficulty surveilling property for insurance, especially in remote locations. With the introduction of drones, the inspection doesn’t have to be a cause of concern anymore.
Whether the location is hazardous or remote, drones can go around the property comprehensively and give insurers enough data to start designing an insurance plan. It can also be utilized to take photographs of accident sites without causing harm to anyone.
While only some innovative insurtech companies are testing out blockchain, it can be expected to roll out for mass use in the near future. Blockchain can be used to enhance the trust between the insurer and business. It can also aid in reducing transaction expenses and increase the quality of data collection.
Insurers can also leverage blockchain to process claims and free their employees from mundane chores quickly. It can increase efficiency for the insurer and ensure better productivity for the employees who can get back to their original tasks.