Page 42 - The Insurance Times September 2024

always changing. In general, InsurTech makes insurance in processes.
processes more efficient, improves customer experience, InsurTech emphasizes individuality. Due to the
and saves money for insurance companies. Examples include innovative nature of information gathering and data
chatbots and smartphone apps that help streamline the processing, many new tools (discussed below) are now
process.
available to better understand each individual's true
needs. This not only improves pricing but delivers more
How to Develop Successful InsurTech reliable, consistent coverage based on historical data.
Developing a successful InsurTech requires a deep Traditional insurance companies relied on brick-and-
understanding of insurance industry dynamics and mortar locations that necessitated manual labour.
technological trends. The steps to develop successful involve InsurTech companies may operate remotely with staff
InsurTech are: engaging with customers around the world which in
turn would reduce operational
costs.
By leveraging machine learning,
data, analytics, and trend analysis,
InsurTech companies would be able
to detect fraudulent activities
more efficiently. In addition, big
data may also be able to discover
potential loopholes that insurers
can seek to close to avoid
exploitation.
Here are some key areas
where InsurTech is making an
impact:
Underwriting and Risk
Assessment: Advanced data
analytics and AI enable more
precise underwriting and risk
assessment, leading to more accurate pricing and
Importance of InsurTech personalized policies.
InsurTech are playing a crucial role in changing how Claims Processing: Automation and AI can streamline
coverage is being applied and settlements are paid for in a claims processing, reducing the time and cost involved
number of different ways: in handling claims and improving customer satisfaction.
InsurTech enhances the customer experience. By
Customer Experience: Digital platforms and mobile
leveraging technology, customers are more engaged in
apps improve customer interaction, making it easier for
selecting their coverage, understanding their needs,
and getting personalized service. Instead of having to policyholders to purchase policies, file claims, and
travel to a branch or speak to a representative, the manage their insurance needs.
future of InsurTech is moving towards self-serve, online Fraud Detection: Machine learning algorithms can
dealings where customers have their choice of detect patterns indicative of fraud, helping insurers
engagement channel. identify and prevent fraudulent claims more effectively.
InsurTech promotes efficiency. Policy-seekers and Telematics and IoT: Devices like connected cars and
policyholders can often research and explore options smart home systems provide real-time data, enabling
using the internet and apps. Without having to wait for usage-based insurance models and initiative-taking risk
business hours or an available representative, many management.
InsurTech companies empower users to quickly access Blockchain: Blockchain technology offers a secure and
the information they need without being bogged down transparent way to handle transactions, manage

38 September 2024 The Insurance Times