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Driving innovation through new technologies has brought commendable changes in the financial sector. It has not only led to immeasurable efficiency gains but also given us a broader perspective on the way business can be done. The insurance sector is not an exception to this. This article clears the air regarding Insurtech and also about Mobile enabled Insurtech apps.
With massive development in technology, it has led to new methods of providing service and new opportunities for data collection, which can lead to better risk identification.
The name Insur-tech is a combination of two words- Insurance and Technology. It is a broad category of constantly changing technologies used in the insurance industry. A technology which is used by an insurance company can be considered Insurtech that increases the efficiency of its operations.
Here are some of the important yet common types that you would see being utilized from an insurance company.
AI is software that can perform functions associated with humans like learning or reasoning. One of the common examples of AI is Chatbots, which are computer programs that can communicate with customers.
This is another type which is a subcategory of AI. It is a technology that enables machines to learn over time. It uses algorithms to mimic the neural network in the human brain. It allows computers to gain knowledge by extracting patterns from raw data. Insurers can utilize machine learning for various purposes such as risk modelling, demand modelling, fraud detection, processing claims, and for underwriting.
This is another type which refers to ordinary machines that are connected to the internet. One of the examples of the Internet of Things is telematics, the use of electronic devices in vehicles to receive data over a network.
Mobile apps can be designed for customers or businesses, also. Insurance company apps have streamlined the insurance processes for many.
Insurance has been riddled by middlemen by tradition. However, taking them out entirely may not be possible, but mitigating their involvement will help in raising the profit margins.
With mobile apps, real time B2C interaction can be done without any role of intermediaries. The positivity goes down to the customer experience, and Insur-tech would not want to miss out on this.
Mobile insurance solutions provide the following benefits to insurance companies:
As buyers become more and more conscious about their spending, Insurance mobile apps make a fine impression in making the public convinced of instant support in dire needs. Moreover, they can draw a comparison on multiple products and shortlist those that benefit them.
There are dual benefits of this, optimizing customer recruitment cycles can free time for insurance agents to target bigger and better clients. Moreover, you can advertise the mobile insurance platform to target more customers.
The insurance industry can tap into mobile analytics, which they analyze to an extent. The collection of such information can help companies operating in the insurance market to filter the best-fit prospects for upselling.
With the current Covid-19 pandemic, face to face screenings are avoidable. Moreover, this pandemic has led to the rise in demand for insurance applications. Therefore mobile apps can increase the chances of people opting for insurance as no face to face screening is needed. The insurers who have not yet started providing mobile solutions to some extent, might not be able to keep up with the current crisis.
It is apparent that investors are apprised of the potential that lies in the use of mobile solutions. Especially after start-ups providing such solutions in the insurance sector are already well financed. Their investments are also going north every year.
There are some examples from the market that are innovative. Below we have discussed some of them.
It may be noted that new technologies and expensive devices provides a great opportunity for insurance providers, but they should be observant to take it before competition does.
Such mobile apps should have all the essential features. Below there are some of the essential inclusions which should be ensured in the apps.
As the wave of digital transformation hits every sector, Insurance sector was unlikely to miss out. Therefore we see the rise of Mobile enabled Insurtech apps. With the massive benefits that it provides, this is here to stay.
Read our article:Artificial Intelligence Transforming Banking Sector