Insuretech Companies Are The Latest Buzz In Finance

In the past few decades, technology advanced at a rate that nobody could have predicted. Nowadays, we see numerous groundbreaking advancements that transform industries with a huge industry. Basically, technology allows companies to think completely outside-the-box so that they can take a different approach to the business they do. 

One of the sectors were we clearly see how technology changes operations is Insurance. We now have access to really interesting deals, like Olive’s Audi extended warranty options. This is possible because the archaic processes of the insurance company were affected by innovation. While there are still numerous regulatory bodies and very strict compliance standards that have to be respected, the use of technology in insurance is growing. This will not change in the future.

Understanding Insuretech

Insuretech is practically the short version of insurance technology. This is a term that refers to the technology that is designed to actively enhance operations for the insurance industry and for the individual insurance firms. Basically, insurance companies now leverage advanced technologies like artificial intelligence, smartphone apps, consumer wearables, and big data in order to transform how business is done. 

One thing that many do not know is that Insuretech actually appeared 10 years ago. Friendsurance, a Berlin-based insurance company embraced technology then and was the first one to do so. At that point in time, the goal was to create a P2P (peer-to-peer) insurance community. The idea was inspired by a group of people. They wanted to support each other and needed a way to do it. 

Friendsurance created a P2P insurance model that incorporated smaller groups to create a large insurance pool. Claim-free deals and even cash back bonuses were thus created. After Friendsurance, we saw a constantly growing number of insurance companies that embraced insuretech. 

In the past decade, the entire insurance industry changed. There is now a clear demand for effective technology and we can say there are no bounds when it comes to what can be created. Consumers crave convenience, transparency, and speed. Due to this, we saw insuretech global investments that reached an impressive $4.15 billion during 2018. 

How Does It Work?

Buying an insurance policy was always something difficult, a completely dreaded experience. Sales agents were incentivized and really pushy, usually pushing things that were not in the best interests of the customer. Then, we had paperwork and really confusing jargon. In order to get the right policy, the consumer needed to spend a really long time learning the process so that the best possible decision can be made. 

Nowadays, insuretech offers a huge convenience. Businesses and individuals can quickly access insurance services and products. Time is saved and various age-old frustrations are eliminated. The customer has access to more insurance options and insurance coverage can even be built among individual needs. 

New benefits are offered by insurers under the form of auto-monitoring devices, wearable activity tracking, and apps. You can easily shop from various coverage types and an online form can be filled in just minutes, allowing quick policies to be researched and signed. 

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