Many companies are already benefiting from the advent of Insurtech. As they have transformed themselves digitally to offer convenience, security, choice, and comparison to their modern customers, it becomes important for consumers to also understand the benefits of Insurtech which is changing the industry-wide mindset.
Benefits of Insurtech
The following are the benefits of insurtech which helps the companies and customers simultaneously.
- Lower Insurance Rates
- Fraud Prvention
- Digital Signature Technology
- Data Analytics
- Lower Underwriting Cost
- Billing Efficiency
- Specialised Insurance
Lower Insurance rates
– Fitness apps or wearable devices:
Fitness apps like Wysa and wearable devices help you maintain your weight, food habits, boost your energy and mood. In addition, they can help insurance providers to tap into them to keep updating their customers to stay in shape and healthy. They also offer many discounts and benefits to customers who maintain a fit lifestyle.
Frauds are the biggest source of worry for insurers. This lead to increasing premiums even for innocent policyholders. Therefore, the extra costs out of company’s pockets for paying fraudulent claims have to be settled by distributing them evenly in a large population. Insurance fraud costs companies billions of dollars per year worldwide. Insurance companies can establish a technology framework, tap into advanced automation and analytics, and take steps to prevent it. People who genuinely want to have insurance covers for need will be provided a clean network.
Digital Signature Technology
Digital signature technology lowers fake insurance account activation and hence a fraud. It is one of the benefit of insurtech. For example, the claims on a said date when insurance is purchased after accident can be brought to notice of the insurer with digital signatures verifying the date of purchase if it is after the incident.
Data analytics as benefits of Insurtech
With vast amount of data generated online, the analytics on claim patterns sorted as per agent, area or a network hospital can be identified. This saves time taken by a data entry operator to record data digitally as well as prevents possible errors while he does his job. However, the time saved can be used by the companies to innovate their products by providing new solutions to customers.
Lower underwriting cost
The number of internet-connected devices and sensors will reach 50 billion by 2020. Which in turn will have a worthy impact on the availability of real-time information that insurers can use for better pricing/underwriting. Also,with improvement in technological infrastructure, the costs of performing such analysis will significantly reduce, hence making underwriting process cheaper , manageable and more effective.
Billing efficiency as benefit of Insurtech
When Billing systems accept varied forms of payments allowing flexibility to the customers , it becomes easier to sell insurance. Hence,this can be used to inform and remind customers of the approaching due dates for premiums. This can help in lowering unintentional defaults.
Specialized Insurance is one important from many benefits of Insurtech. Each insurance seeker is different from the other. Factors of evaluation can be different for every insurance seeker. This requires the insurance agents to have specialized knowledge of each and every client of theirs. The internet has helped them seamlessly in this direction. However, Machine learning plays an important role here. It has the capability to learn and analyze billions of patterns. It can identify suitable underwriting clauses already set by the underwriters. Which in turn can identify specific customized plans based on the data provided.
However, this can change the customer’s perception about how they used to see Insurance Company as the ones who cheat innocent policyholders. Therefore, emerging technologies have produced various opportunities for Insurers to walk as per today’s world. They provide seamless experience to their customers and create new, innovative and cost effective services and products.
If you have not gone through our Insurtech articles, here are they!
|Insurtech Part 1: What is Insurtech and Reason of Growth||Click here|
|Insurtech Part 2: How Insurtech is reshaping the global insurance market||Click here|
|Insurtech Part 3: Emerging Insurtech models in India||Click here|
|Insurtech Part 4: Benefits of insurtech to insurance companies||Click here|