“InsurTech” is a term used quite often these
days – a spin-off of the even more popular word “FinTech.” It refers to
technologies and platforms. These platforms can help optimize any of the
principles for success or requirements of insurance.
InsurTech encompasses companies that provide
insurance, but engage technology in a user-centric way.
It includes the following:
Customer service and account tracking software
Risk analysis software
Personalized insurance products
Software allowing a customer to view all their
insurance products in one place
Devices and appliances that collects data
Traditionally the pace of technology innovation in
the insurance industry has been slow. There was no real sense of urgency for
change, which was most likely due to the high profits. Plus the
belief that there was no real external competition for agents and brokers.
Fast forward to recent years and information
technology has evolved dramatically. Insurance players have lost track of
what competitors are offering and who their competitors actually are.
But a recent study conducted by PWC revealed that
about 75% of insurers expect this technology to disrupt their industry. Less
than half of them are actually prepared to make it a key strategic priority
though.
This clearly shows that these bigger insurance players are slower to move. This gives smaller broker businesses like yours, an advantage – so do embrace it!
AXA Insurance created an interesting Infographic on
InsurTech in China. Since this region is at the heart of innovation
in digital insurance. It gives others an opportunity for take-way ideas to
put in place. Here are relevant sections: