The Rise of InsurTech
June 11, 2019
Innovation and insurance have a long standing relationship. In recent years technology has expanded its role in our lives and business innovation has reached a new pinnacle of significance. As part of the growing importance of innovation, the rise of “InsurTech” has resulted. (InsurTech is the term used to generally to describe technology companies that offer products intended to serve insurance companies or their customers as part of an enhanced experience.) InsurTech companies are growing rapidly, and many carriers are now investing in start-up ventures while also working to develop their own technologies. This aligns with our digitally focused age and is no surprise.
Consumers expect industries to adapt to new technologies. InsurTech is evolving how consumers get coverage, while increasing efficiency and cost-effectiveness. Benefits resulting from the rise of InsurTech include:
- Meeting changing customer needs with new offerings
- Enhancing interaction and building trusted relationships
- Augmenting existing capabilities and reach with strategic relationships
- Leveraging of existing data and analytics in new ways to generate higher quality insights
- Utilizing new approaches to underwriting risk and predicting loss
- Enabling of businesses with sophisticated operational capabilities
Companies that have started to use technology and alternative insurance models have seen great success, and data suggests this is only the beginning. The easy, affordable, and customizable options available through InsurTech innovations have left younger consumers excited to hop on this new insurance trend.
The Iowa Insurance Institute looks forward to the continued evolution of InsurTech and supports the expansion of innovation in our industry.