Innovations In Insurtech

“Innovation is the ability to see change as an opportunity – not a threat!”

This famous quote from Steve Jobs certainly motivates us to embrace the change and find more innovations in all the domains. Innovations have always been the basis of making something great. It takes courage and determination to move on from a comfortable working place, find efficient methods, and eventually apply them effectively. Over the past decade, some of the best brains have researched and implemented their findings that will be an important aspect for a brighter future.

Insurtech is one of the greatest innovations in itself. Taking all the insurance aspects digitally and implementing them accurately is a great challenge, and insurtech is surely ready to take on it. They have continuously innovated and merged all forms of new technology to benefit their customers.

Insurtech is actively using data science algorithms to track and identify various customer behaviors. Working closely with Artificial Intelligence and Machine Learning has certainly helped to improve services and fast-track all the processes in the insurance domain.

With the help of technology, insurtech is all set to completely change the way people buy insurance. So, here are some of the important innovations that Insurtech is working and improving on:

• Telematics Insurance:

The coming of insurtech companies has surely brought a revolution in the working of the insurance domain. Using high-end technology and constantly improving and innovating their services has made them stand out from the traditional insurance companies, which have limited options and plans to serve their customers. These traditional companies tend to provide only a few options while considering car insurance. They have fixed prices and conditions for every car owner.

Insurtech is surely going to change these traditional methods of car insurance. Telematics is the latest innovation for that. Telematics devices equipped with GPS, sim cards, and motion sensors are installed in the customer’s cars to monitor the driving behavior. These telematics boxes collect and store data to communicate it further to the insurtech companies.

Having given personalized and accurate data about their customers, insurance companies start to prepare tailored insurance plans for the insurers. This type of service creates a sense of trust amongst the customers, as they become certain that insurtech is not using the “one size fits all” approach.

As insurtech is working in a completely digital manner, customers have a huge set of expectations from them. The coming of telematics insurance is a positive sign for both the customers and insurtech companies. Seeing an accurate personalized policy will surely keep the insurers happy.

• Data Science:

Technology around us is changing rapidly. New methods are replacing the traditional ones for better functionality. Data science has been a major contributor to various innovations. Data around it is growing rapidly and humans need to analyze it to their advantage.

Insurtech is largely using data science to provide better services to its customers. It provides great opportunities to automate and fast-track the working of major aspects of insurtech.

Insurtech uses data science for price optimization. They provide customers with personalized policy plans according to their lifestyle and interests. Various algorithms are used to accurately predict human activities, helpful for pitching them various personalized policies.

Data science also helps insurtech in the most important aspects of settlement and claims. Various algorithms store relevant customer data that can be retrieved while solving any particular claim issue. These data science models have promising results and will most likely help insurtech in automating the process of settlements in the future.

Insurance companies often have to face major losses due to chief frauds. Data science algorithms identify and alert people about any suspicious activities that can lead to major frauds. They continuously monitor all actions to ensure the smooth functioning of all aspects of insurtech.

• IoT (Internet of Things):

IoT is a key factor in data science. With its help, data science can perform more effectively. IoT is the extension of the internet into various real objects and places. Various types of chips and sensors are used to work collectively and provide a great user experience. IoT works closely with artificial intelligence and big data.

This has helped to digitize and automate material factors for insurtech. Various types of telematics and wearables are used to gain valuable customer data, which is then used to serve them with personalized policy plans. IoT, along with data science, monitors the regular activities of the customer and encourages them to maintain a healthy lifestyle. The main reason is the lesser amount that the insurer needs to pay for his premium if he is in good shape. IoT is one of the key innovations that insurtech is utilizing.

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• Blockchain:

The basics of blockchain are storing data on several computer systems rather than just one. It helps to store various data blocks that are extremely tough to hack. So, blockchain provides the best possible security. All operations performed are tracked and stored automatically, providing a digital identity to those who have performed the transaction.

The power of blockchain is used by insurtech to support new financial transactions, improve the insurance process, and track various customer records. Blockchain-based currencies could also be potential ways to pay premium amounts in the future. Various types of micro-models can be used by insurtech through blockchain development. So, provided the security and convenience that blockchain offers, it is more likely to be widely applied by insurtech companies.

• Smart Homes:

As the technology is improving rapidly, its integration with the traditional methods and co-working with the new reforms becomes necessary. If all the technologies are not integrated, their independent working won’t be that effective.

Smart homes are a new concept and are being accepted by the audience quickly and successfully. The coming of various gadgets that help to automate daily activities by using motion or voice assistants is the basis of converting into a smart home.

Insurtech companies are on the perfect path to integrate their offerings with the foundation of smart homes. All the smart devices that are installed in a home are linked to various servers of the company. This will continuously monitor and store relevant data. This will eventually lead to studying the customer’s behavior, which will help insurtech to draft personalized home insurance for the customer.

These practices will also contribute to the customer’s safety and his caution to avoid any mishaps, leading to a small premium for his policy. Digital sensors will enable real-time alerts. Insurtech is ensuring that it does not leave any untapped resources to provide the best user experience.

• Drones:

Drones have been one of the most attractive forms of technology. They are being used in every domain effectively and have given satisfactory results. Though the concept is yet to be commissioned to its full potential, it has already gained a significant place in the working of many industries.

Insurtech companies will surely take the help of drones. While analyzing any claims, drones can be deployed to reach a particular site and give real-time updates about the situation.

They are also used by insurtech for various monitoring like roof damage inspection, checking warehouses and farmlands, and integrating with artificial intelligence and machine learning to assess the damage and repair costs.

Surveying is another aspect where drones can be used by insurtech. Large-scale surveying about the customers takes a long time; due to the easy maneuvering of drones, they will fast-track the process.

• Customer Experience:

Having a happy customer is one of the most important aspects of any company. Emphasis is always laid on improving the user experience and adding more benefits for the customer. Technology is widely used for this purpose.

With the help of data science, insurtech is providing the best possible customer experience. From providing personalized policy premiums to solving claim settlements in no time, insurtech is ensuring a change to the traditional work system.

Various types of telematics and wearables have been manufactured to solve the problem of one insurance for all. Getting personalized recommendations surely allows the customers to track their activities and improve all the factors from their end.

Customers are being provided with all the relevant data with just one click. All the policy details, comparisons of policies, and available discounts are being integrated into a single application for customer convenience. By providing such functionality, the customer is likely to be associated with the company for a long-time.

So, innovating and using new technology’s help, insurtech is creating the best user experience and constantly improving it to make it even better.