What is InsurTech?

What is InsurTech?

December 11, 2017

FinTech  (financial technology) has grown rapidly in recent years, and little has pay attention to InsurTech, but in fact, the insurance industry have been actively researching and developing InsurTech. It is believed that InsurTech will help the Asian insurance industry to save a huge amount of cost, hence, increase its annual profit.

By definition, InsurTech refers to how the insurance industry uses new technology to design new products and solutions, to improve the procedure and operational efficiency, and enhance customer experience and satisfaction. InsurTech redefines the insurance industry through technology of mobile applications, the use of new technologies (such as wearable devices), telematics, and artificial intelligence. These technologies and the data they provide can enhance the user engagement, and provide deeper insight into the risks posed by user preferences, in order to design new products to meet the needs of users. For a long time before, customers and the insurance industry were gradually alienated, and InsurTech was seen as a tool to reconnect them. Not only does it provide huge commercial potential for the industry, it also help insurance companies reaffirm their original intention - to protect and support policyholders.

Moreover, InsurTech can also reduce false claims, decrease claims costs and the amount of paperwork, shorten the operation process and speedup the claim procedures. With the increasing digital distribution channels, the number of insurance agents is expected to gradually decrease. In the coming years, with the continuing change and advancement with the industry, InsurTech could threaten about 1.5 million jobs, and the logistic departments will receive more impact than frontline agents.

At present, more companies are starting to develop InsurTech. If insurance companies do not seek for change, they will suffer a severe setback for sure. It is expected that in the coming years, the market share of insurance companies will change along with the technology used.