“Insurtech” is a term composed of the words “Insurance” and “Technology”. In addition to being a rapidly growing sector, it is the widespread name to indicate an industry that uses technology to improve insurance products and services, with the aim to make it more efficient, accessible, transparent and personalized.
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What is Insurtech
The sector, thanks to the use of technologies such as AI – Artificial Intelligence, Machine Learning, Blockchain, Cloud Computing, Virtual Reality, IoT – Internet of Things, involves the creation and development of new technologies, platforms and business models.
This, to improve the user experience in the underwriting, management and resolution of claims, thanks to a constant pro-user/customer personalization action obtained through the collection and analysis of large quantities of data on user behavior, their needs and about their preferences.
A major trend of the Insurtech sector is that of the automation of processes. This allows to reduce costs, increase speed and improve precision in risk assessment, contract stipulation, claims management and accident prevention.
The main sectors of Insurtech
The main sectors of Insurtech are:
- Insurance distribution: This industry focuses on online platforms that allow consumers to compare and purchase insurance policies easily and conveniently. Online distribution platforms are able to offer a wide range of insurance products from different companies, facilitating consumer choice and improving price transparency;
- Insurance analytics: This industry focuses on using data analytics to assess risks and improve claims management. By processing large amounts of data, insurance companies are able to identify risks more accurately and offer personalized insurance products to their customers;
- Telematics: This sector focuses on technologies that use mobile devices and sensors to collect information on driver behavior and offer them personalized policies based on their driving style. Insurance companies use data collected by telematics to calculate premiums based on the driver’s actual risk;
- Healthtech: This sector focuses on technological solutions that improve people’s health and well-being. Healthtech technologies include wearables, health management apps, and telemedicine platforms;
- Cybersecurity: This sector focuses on solutions that protect businesses and consumers from cyber threats and hacker attacks. Insurance companies are starting to offer specific insurance policies to cover cyber risks, such as cyber-attacks;
- Insurance platforms: This sector focuses on platforms that offer integrated insurance services. Such as claims management, roadside assistance, travel coverage and pet coverage. Insurance platforms offer customers a more complete experience, simplifying the management of policies and claims.
Read also: The most requested professional profiles in Insurtech
