Traditional insurance firms are yet to touch the foreign shores of technology adoption or disruption. Nevertheless, this pandemic has Insurance players considering their strategies and adopting technology to retain its customer base.

So far, many insurers or insurance companies have adopted a technology-based process only on a cellular level. But, given the wave of innovation, Insurance companies are yet to arm themselves for the upcoming digital transformation. That is where InsurTech comes in to save the day.

InsurTech- Overview

InsurTech is a component of Fintech dedicated to delivering a complete set of digital insurance solutions and services. When FinTech started, it mostly worked with banks as partners and improved user experience through online/mobile banking or digital payments.

As a striking contrast, InsurTech focuses on the consumer segment than the commercial one. The reason is that digital-savvy individuals consider insurance products like any other consumer goods and are willing to try or switch new insurance policies. They are incredibly comfortable in submitting an insurance claim online or browsing for insurance policies online.

Product Strategy and Value Chain

Today, most InsurTech applications cover consumer insurance product lines like Property & Casualty (P&C), Non-Life Insurance, and Health Insurance. And so far, P&C has been a significant contributor to InsurTech’s revenue.

Moreover, with extensive real-time data collection and analysis, InsurTech minimizes the number of false insurance claims considerably compared to legacy systems. It’s interesting to see that the same P&C insurance product’s value proposition differs between incumbents (existing insurance providers) and new entrants (tech-based insurance companies).

Currently, InsurTech is targeting the sales, pricing, and distribution areas predominantly in the overall value chain. For higher growth, it should expand across the entire value system, including new product development, and start offering more commercial or retail and life insurance services.

Technology Triangle and Benefits

Most of the tech adoption has improved the method of delivering and buying claims and paying and billing. For instance, streamlining the claim disbursement user journey is of utmost importance to InsurTech.

Today, they include as many digital touchpoints as websites, apps, smart devices, wearables, and much more. Additionally, they are keen on instantly issuing claims right away when the customer faces damage. Many InsurTech has already accepted digital card payments instead of checks from customers to disburse and process claims at lightning speed.

Therefore, the existing programs in InsurTech revolve around providing a better customer experience, lowering acquisition costs, minimizing risks, increasing upsell, and cross-sell.

Subscribe to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.

Follow us on LinkedIn and Twitter for insightful fintech tales curated for curious minds like you.

Tag: "Insuretech (1)"

M2P Fintech

Product

About

Resources