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Insurtech Trends and How They Affect the Insurance Industry

Insurtech Trends and How They Affect the Insurance Industry

insurtech

Insurtech companies are developing new ways to insure people. Blockchain, IoT-enabled drones and Selective discounting are all examples of recent developments in insurtech. The key question is: how do these innovations impact traditional insurance? How can they enhance the customer experience? And how do they compete with legacy companies? Let's take a closer look. This article will explore each trend and explain how they could affect the insurance industry.

IoT

The rise of IoT technology has many applications in the insurance industry. Insurers traditionally measure risk by comparing the ages, gender, and location of drivers. But thanks to IoT technology, insurers can now better assess risk by combining these variables with insightful analytics. With IoT, insurers can better estimate risks and offer policyholders special discounts based on their age and driving habits. Insurers can also make more precise quotes based on data they collect from car owners.

Blockchain

The insurance industry faces numerous operational challenges resulting from complex claims management, loads of paper, and inconsistent customer experience. Blockchain can help solve these problems by providing a decentralized database and enabling interaction between stakeholders. Blockchain can also help insurers streamline processes, increase operational efficiencies, and develop innovative products and services. To find out more about blockchain in insurance, keep reading. Its many applications are discussed below. But, why is blockchain so important for the insurance industry?

IoT-enabled drones

IoT-enabled drones, or autonomous unmanned aerial vehicles, are fast becoming a reality for the commercial and military industries. With a variety of benefits, they are poised to revolutionize industries as diverse as energy, transportation, health care, surveillance, and more. With the help of a drone, insurers can quickly and easily monitor huge projects for efficiency and safety. However, there are some important considerations to make when using these drones for business purposes.

Selective discounting

Despite the rapid growth in the number of insurtech companies, they are still a relatively small part of the overall insurance market. The largest concentration is in the US, UK, and Germany, with the Asia-Pacific region making up the fastest growing region. The companies operate across all major insurance products and business lines, with most of their activities concentrated in marketing and distribution. The growth of the insurtech industry is set to continue and become even greater in the coming years, especially in Asia.

IoT-enabled electronic signatures

IoT-enabled electronic signature solutions in insurance can make the process much simpler for everyone involved. According to CSIO, an industry association for property and casualty insurers, only 6% of insurance brokers are currently using digital signature solutions. However, the vast majority of insurance quotes still require the customer to sign and print out the documents. With this technology, this process can be made paperless, saving time and money.

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