The insurance industry has been active for decades. As we know, insurance helps you to protect yourself against risks like a house fire, car accident or burglary. There are different types of insurance services that will cover almost everything. Like everything nowadays, the industry is looking to reinvent itself. The change will come as “Insurtech”, which refers to the phenomenon of startups that are innovating using technology.
Insurance + Technology = InsurTech
Technology has been creating new opportunities and transformations of many industries such as Fintech. Even though it is something new, according to the Insurtech Connect 2019 the trends for this, 2020 will make it one of the best years in this industry. In 2016 60% of all insurtech transactions were in the USA and since then it keeps expanding to different countries.
Advantage of Insurtech are:
- Convenience: There is not a better way than being able to buy an insurance policy by using your smartphone. This is the real competitive advantage of insurtech, the facility it provides to its users at a reasonable cost. Instead of losing hours of your time in an office or by phone with any insurance company.
- Transparency: There are some important considerations that any software provider has to be aware of and take action to protect people’s privacy. Especially if they are working with companies that ask important and private information to their customers.
- Saving: One advantage that insurtech companies have is that they are digital companies. Many insurance agents have been cut out, because of the expensive cost of maintaining a physical company. Insurtech gives them the claim to pass these savings on to their customers so they aren’t overpaying.
- Customization: Rather than settling for costly products that don’t really fit their needs insurtech empowers customers to take control of their insurance. Digital companies give to their users a different experience and depending on the company gives them the chance to demand products that really benefit them.
As you can see Insurtech is here to stay. All the technologies they implement in their methods and the quick access to their services are what their customers love the most. Don’t get surprised if from now on we start finding more companies that will transform into a tech company for all the advantages it brings to them.