For quite some time, the insurance industry was lagging in digital innovation. However, thanks to InsurTech, the sector is currently undergoing a complete evolution that is sure to improve efficiency, customer satisfaction, and foster the achievement of various strategic objectives.
InsurTech funding is for sure booming. According to Willis Towers Watson, the 2019 Q3 financing of the InsurTech industry was USD 1.5 billion over eighty-three deals. This figure was 6 percent higher than the total amount raised in Q2 2019 and the third-highest for worldwide InsurTech investment to date.
According to Business Insider, when it comes to the level of adoption, we can expect InsurTech to be the biggest in Europe and America. It is understandable since these locations have advanced and mature insurance sectors. That said, who will benefit from this technology? The target market for InsurTech solutions is predominantly retail customers, for instance, small enterprises and consumers.
Another notable thing is that insurance brokers are sure to be the most affected by the InsurTech disruption. It is because the solutions provided by InsurTech can quickly replace their services.
Regarding technology, a report by Mckinsey concludes that big data and machine learning are the most adopted concepts in InsurTech at 20%. Usage-based insurance technology comes in second (13%), and finally, the IoT (12%) winds up the top three. That said, let us now examine six cool InsurTech solutions:
It is a renowned InsurTech startup that is out to offer protection of your properties as well as houses. While Lemonade is known among customers for many things, it is widely appreciated for the unconventional fees. These low charges can be attributed mostly to the fact that the firm has automated its internal functions extensively.
Before, when claims were assessed using manual systems, it took a whopping eleven days to make a decision.
But once automation was implemented in the process, a majority of claims were processed by faster chatbots. In turn, it meant that decisions could be made in only a matter of seconds.
If there is a need to transfer a specific case to a human team, the automation ensures the same is done fast. Consequently, the duration of settling a claim is significantly cut down to one day at most.
This is an MVP dev project that our company has been working on for one of our clients. This InsurTech product provides a digital marketplace for the structuring, issuing, and trading of various insurance assets. Given that it leverages a marketplace platform, this solution allows both insurance and reinsurance firms to connect with investors to trade insurance-linked securities.
TrackActive provides patients and their medical experts with a seamless way of cooperating in their treatment programs. With this application, a medical professional is able to monitor what the patient is doing. Moreover, he or she can assess the risk posed by specific injuries, guide them against going contrary to the treatment plan, and, most importantly, assist them in healing fast.
TrackActive collects data from the patient via smartphone or smartwatch. Regardless of the device being used, they all serve to monitor the patient’s physical engagements, their heart rate, and blood pressure. Further, this information is assessed to provide the medical expert with insights regarding the patient`s progress, the emerging risks, and suitable mitigation strategies.
MoneyPark is an InsurTech solution offering the users tailored advice on insurance and mortgage matters in Switzerland. The standout aspect of this product is its timely and quick lookups for the most reasonable mortgage rates on the market. Moreover, when a user identifies a mortgage, MoneyPark provides him or her with a mortgaging plan. Note, while this solution was developed right from paper, estimations for the insurance rely on an existing open-source library.
WaterHero is an InsurTech solution that offers customers protection against expensive and destructive water leaks. It uses a system of sensors to detect and turn off the water before it accumulates over time. In this setup, sensors are connected to the water pipes in the house of the customer. Then, whenever an incident related to water flow is detected, these gadgets send notifications to the user, enabling them to act accordingly.
A significant chunk of insurance claims is connected to water leakage.
Therefore, WaterHero is an excellent product when it comes to incentivizing insurance providers to act. Note, though this solution does not guarantee to stop all water-related incidents, it surely reduces and prevents a lot of them. In turn, it results in lower costs for insurers, lower premiums for users, and minimal issues.
Trov provides digital insurance solutions for enterprises in various sectors, thus improving the way users live, work, or move about. One of the features of this InsurTech product is mobility insurance. With this characteristic, Trov offers intelligent protection to suit the evolving nature of the insurance needs of commercial fleets and personal auto insurers. It is meant for rideshare, bike share, commercial freight, etc. The cover adjusts on the go based on the vehicle phase.
Another noteworthy feature is the single item insurance solution.
Under this provision, Trov avails on-demand insurance for various items like cameras, bicycles, and so forth. The cover is provided for the duration specified by the user after a simple action on their smartphone. Flexible insurance for home, as well as adaptive protection for small businesses, are other innovative solutions provided by Trov.
To sum it up, digital transformation has already hit the insurance sector. The rise in the funding directed towards InsurTech firms is indicative of the ever-increasing rise in the popularity of this solution. Therefore, we can expect only much potential from this technology when it comes to various handling insurance processes like the processing of claims, management, client-side AI-powered chatbots, and so forth.
All told, InsurTech has already proven to be useful when it comes to boosting efficiency in the insurance sector.
For this reason and all the prominent features mentioned above, it is high time for you to consider this technology too.