The landscape of the insurance industry is rapidly changing, thanks to the emerging technological world. InsureTech is beginning to take hold of the typically traditional industry, altering it in ways previously unimaginable.
While social media and the online world have played a small role in insurance for some time, it has primarily been in the hands of adjusters and investigators. Now, the emergence of InsureTech startups that utilize the connected digital world is beginning the further disrupt the industry.
According to Mark Breading at Property Casualty 360, the insurance industry is on a “collision course”. In his piece, “When Worlds Collide: Insurers and Insuretech”, he describes an industry that is undergoing great change. He discusses the “emergence of convergence”, or the “bringing together of the new, innovative companies and a capabilities with the traditional elements of established businesses”.
In his article, he explores how this convergence will manifest in five key areas: distribution, risk, product, customer service, and operations. All of these areas leverage digital space to accomplish their goals to create a better insurance experience for all parties involved. Distribution InsureTech startups utilize AI to create innovative customer experiences, while InsureTech companies that focus on risk utilize real-time data to improve underwriting and pricing. Product companies are working on usage-based insurance solutions, customer service InsureTech startups are looking at technology to streamline interactions with customers, and operations-centered companies work to optimize operations within an insurance company.
While this may seem overwhelming to an industry that is rooted in tried and true process and procedure, Breading suggests that this “doesn’t have to be a disaster scenario for the insurance industry”. Technology’s intersection with insurance ultimately opens up opportunities for companies to become more effective, profitable, and relevant – creating one of the most exciting times to be in the insurance space to date.
Read Mark Breading’s piece, “When Worlds Collide: Insurers and Insuretech”, by clicking here.