Role of Insurance Technology (InsurTech) in the Transformation of the Insurance Industry

by Surya C. A specialist in Insurance Technology and Services

Insurance has recently become a very competitive industry for all insurance companies, brokers and agents to grow in. As the competition is pushing insurers to strike better results, the players are increasingly diving into technological elevations in their respective Insurance business processes. This is being driven by innovative automation of InsurTech companies that are building software solutions to mitigate complexities of the Insurance industry targeting better growth.

According to a recent study, the global insurance industry spent 76 million U.S. dollars on software for cognitive/AI technologies in 2016 which is expected to rise to 571 million U.S. dollars by 2021. These statistics are evidence of the fact that how insurers are increasingly opting for Insurance technology to better their competitiveness in the Insurance landscape.

The partnership of Insurers with Insurance technology companies is implicating better results for Insurance companies and agents. But how!

Let’s deep dive in the benefits offered by InsurTech!

Enhanced Customer Experience

Insurance sales are mostly dependent on the Customer Relationship Management. That is the reason most insurers try to build personal connections with their customers to gain their trust so that their customers can rely better on them. But today as the insurance comparisons available on internet take over these conventional methods, Insurance technology is backed with efficient CRM software that plays the role of backbone of any Insurance process for improvising Customer engagement and working as a smooth carrier for Lead Management.

Accurate Underwriting

The experience of the complex task of underwriting and claims management is taking simpler turns through AI-based smart- tech directing better decision making through Data Analytics. Insurance technology has introduced algorithms for Insurers to opt for techniques that minimize the scope of error in complex tasks like premium calculations of the customers.

Document Digitization

Another troublesome task for Insurers is document handling which the Insurance technology is taken over successfully by equipping InsurTech with Digital Document Repository that ensures efficient management of all the documents and policies at one’s immediate rescue in a unified framework. This saves time and cost of exhausting resources for such documents management in excel sheets and docs.

Mobile Apps for Better Connect

The Insurance industry requires technology that is easy to rely upon for customer satisfaction when it comes to supporting customers in emergencies. InsurTech also builds connective landscape between customers and Insurers with the help of easy-to-use Mobile applications. This helps in reputing the Insurance brand as worthy of relying from a customer’s perspective. The customer can even process Claims through such apps lessening the approval time and connecting with their insurers on the go.

Concluding Statement

The role of InsurTech companies in simplifying and rectifying the challenges for the Insurers at all paradigms of the Insurance landscape is increasingly shaping the new age of the Insurance domain. Insurance Technology is providing better opportunities for insurers to grow and steadfast their sales with accurate risk calculations in underwriting, efficient CRM solutions and a reliable Lead Management system.