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How InsurTech is Transforming the Insurance Sector?
Published Date: 10 Feb 2022

InsurTech is using technologically advanced solutions designed to improve & streamline the businesses involved in the insurance sector & bring innovations for operational efficiency. These technologies include Artificial intelligence (AI), Machine Learning (ML), the Internet of Things (IoT), Drones, among various others, about which we will learn ahead in the blog.

It is principally to enhance customer satisfaction throughout the value chain, right from the product to services and marketing to claims & benefits. Across the insurance industry, InsurTech is swiftly gaining momentum and driving the sector substantially. A research study has cited that the Global Insurtech Market can register around 35% CAGR during 2021-26. This forecast attributes primarily to the increasing inclination of insurance companies to digitalize the sector in order to bring operational efficiency and offer an overall better customer-centric experience. Let's find out about the different segments deployed in the service & back the momentum in the sector.

  • Artificial Intelligence

Several insurance companies are actively adopting AI and utilizing software programs & algorithms to perform functions that include customer interactions, including image analysis, speech recognition, decision making, among various others. 

  • Machine Learning

Since insurance companies have large volumes of data, it can become difficult to manage & simply them by humans. Hence, the adoption of ML technology is enabling these insurance companies to take off the burden of managing this information. this technology brings facilities like simplification of processes like data extraction & processing, enabling the company to quickly process customer claims, detect frauds, predict service demand, etc.

  • Internet of Things (IoT)

With the increasing application of IoT across different verticals, the insurance sector is no exception. These companies are utilizing the technology in keeping a track of the vehicle & driver's behavior & generating real-time data. Such data are majorly used at times of insurance claims to study the authenticity of the situation & avoid fraud. 

  • Blockchain

Blockchain technology enables several insurance applications like better management of fraud, enhanced customer interaction, & simplified insurance claims, among various others, and settles disputes in a matter of time when everything is in place. 

  • Drone Technology

Several insurance companies are increasingly utilizing drone technology for several applications like the inspection of property, accident scenes, etc. It is another way to find what really happened and address the issues & claims settlement accordingly. 

  • Robot-Advisors

In the new era of advanced technologies & increasing prevalence of automation, insurance companies are not behind. The sector is increasingly adopting robot advisors & creating a platform for better customer reachability. This technology is providing instant solutions to the customers & building a robust consumer base without the need for human intervention. 

Prominent Applications of InsurTech

With the growing utilization of technologically advanced solutions in the insurance sector, the entire industry is swiftly escalating and displaying an extensive range of applications. Some key applications of InsurTech in the sector are listed below:

  • Verifying the Customer Identity and including Know-Your-Customer (KYC) process as a critical matter across the insurance sector. 
  • Enhanced Management of Insurance Claims using technologies like Blockchain to build a standardized document with all details evaluated in real-time, ensuring flexibility & transparency. 
  • Detecting Fraud beforehand & preventing risks by safeguarding against duplicate transactions or third-party interferences. 

Conclusion

All the factors cited above indicate that Insurtech is swiftly gaining momentum across the insurance industry and is projected to bring a wave of digital transformation & untapped business opportunities, which, in turn, would boost the Global Insurtech Market in the coming years. It shall further benefit both the customer & the insurance company while playing a crucial role in bringing digitalization and the change that customers actually wish to see across the insurance sector.

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