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How FinTech is Revamping the Insurance Sector

12 November 2020
How FinTech is Revamping the Insurance Sector

The insurance industry has always been a complicated medium for customers to fully grasp its functionality, so in the age of fast and intuitive financial technology platforms, InsurTech (insurance technology) is a rising concept that aims to become more user-friendly in terms of communicating its services to an increasingly tech-savvy population.

Built on the exponentially rising popularity of the FinTech industry around the world, tech-enabled insurance products & services translate into many advantages for customers and businesses alike. Faster, easier and more efficient claims processes and policy pricing are just the tip of the iceberg for InsurTech, and the insurance ecosystem is bound to change for the better when it comes to consumers.

The industry serves many other market sectors, and today they are using technology in a variety of ways to facilitate all insurance aspects of their businesses. Automotive insurers for example are using telematics devices that can automatically detect accidents as they happen, as well as assessing damages and the severity of the impact, in addition to notifying the relevant authorities in order for them to dispatch emergency services at the accident location, such as tow trucks or ambulances. In turn, the concerned insurance firm can utilize this data for faster and more accurate claims processing, resulting in an overall quicker process and better satisfaction for customers.

In the emerging Internet of Things (IoT) industry, Insurance companies are also establishing partnerships with innovative technology entities to offer security devices that feature IoT functionalities, such as video doorbells, smoke alarms, and theft-detection instruments. Another example is the popular use of drones for performing human tasks that don’t necessarily need humans to do them; insurers employ drones to remotely assess damage claims on real estate properties instead of sending an agent to do that task, for a seamless process of payments.

Health insurers are also aboard the tech hype train, where some leading companies are encouraging their customers to provide them with real-time feedback on their health and wellbeing through wearable devices such as smart watches and Fitbits. And accordingly, those insurers provide customers with incentives to convince them of this emerging trend, like offering discounts, cash-back offers, coupons and more.

Ultimately, all these examples serve the main purpose of faster insurance payments as well as claims validation and processing, resulting in a much clearer and more efficient insurance process.

As we dive deeper into the neo-digital age, new technologies like augmented reality (AR) and virtual reality (VR) are also being used in the unlikely sector of insurance. Auto insurance companies use AR displays to communicate the dangers of driving by simulating car crashes, as well as for educating customers on damage estimation and even insurance plan walkthroughs. Health insurance entities use AR to turn the banality of choosing retirement benefit plans into a fun and exciting activity.

Although insurance as an industry is crucial to complementing and enhancing our wellbeing, people were rarely interested in its details and how it works until today. Once again, technology is transforming yet another traditional sector, and this time it is somewhat difficult to predict where InsurTech will end up in the future, but one thing is for sure: insurance coupled with technology definitely yields a better, faster and more accurate version of the industry. 

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