For starters, let’s define what Insurtech is. Insurtech is a combination of the words “insurance” and “technology” and it works to disrupt and innovate the insurance industry as a whole. According to Investopedia, insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model.
Insurtech, unlike traditional insurance firms, offers very customizable policies, social insurance, and they use Internet-enabled devices as new forms of data to price premiums according to the situation and observed behavior. According to Investopedia, Insurtech is a term, similar to fintech, for a company using technology to disrupt the insurance industry.
With these new technologies and data analysis systems, insurtech allows products to be priced more competitively. The rise of innovative technology has allowed for cost-cutting practices throughout the industry. This technology produces real-time insurance data, eliminating inaccurate information and leading the customer to trust the insurance company more.
InsurTech Providing Accessibility
Insurtech companies can provide an accessible way for policyholders to manage their claims. Easy-to-use interfaces have replaced the traditional platforms for insurance and results in less stress for clients. Insurtech empowers customers to take a more active role in their insurance policies. With a new customizable and flexible platform, individuals or businesses can cut out extra components that they don’t need, and be more selective while creating their insurance policy. Tailored policies benefit both the customer and the insurance company.
It’s often a more popular option for businesses that may incur losses due to natural disaster or weather-related events, which make it hard to measure losses. Compared to normal property insurance, which often delays the claims process, placing you at further financial risk, insurtech streamlines the claims process. The global insurtech market is expected to grow 41% annually between 2019 and 2023. Read our blog on the 8 Benefits of Using Insurtech to learn more.
In a recent article published by Property Casualty 360, Hailios was selected as one of the 11 Insurtech companies to watch in 2021. At Hailios, we’ve revolutionized the collection of environmental data. Our free-standing systems empower insurance providers to make more accurate and timely decisions. If you’re a business owner preparing for hail season, contact us here and we’ll help find a solution that’s right for you.