Technology helps every industry do things faster and better, and insurtech is transforming the insurance industry. Insurtech, short for insurance technology, was coined shortly after fintech reshaped traditional banking and financial services.
In the not-too-distant past, insurance companies have viewed technology as something to dabble around with or something nice to have. The regulatory nature of insurance has been somewhat responsible for the lag in the progress of technology within the industry.
Nonetheless, insurtech has overcome regulatory challenges to improve the claims process and customer experience while generating greater revenue.
Here is a brief overview of the top five benefits of insurtech.
What Are the Benefits of Insurtech?
Insurtech can help insurance agencies save money on operational costs.
By automating tasks and using data analytics to improve underwriting and fraud detection, insurers have reduced their overall expenses. In addition, one of the benefits of insurtech is that it can help insurance agencies more effectively manage risk.
By using data to identify trends and pinpoint areas of potential exposure, insurers can make better-informed decisions about how to protect their policyholders.
Insurtech provides a more efficient way to manage and process insurance claims.
One of the most expensive and time-consuming areas of insurance is the claims process. We live in a litigious society where insurance companies are usually on the hook for lawsuit payouts. With large amounts of money at stake, insurers must take great care to fulfill the promises in their contracts while being diligent about preventing fraud.
Claims processes typically rely on outdated manual processes. Insurtech streamlines and automates claims submissions, freeing up claims adjusters to handle the tasks that require a human touch. Insurtech gives claims adjusters better data for evaluating claims, which improves efficiency and enhances decision-making. Insurtech can also track and monitor claims every step of the way and keeps adjusters in the loop with regular notifications and reminders.
Insurtech can improve customer satisfaction by providing a more streamlined claims process.
While policyholders know they need insurance and do not often file claims, they expect to have a good customer experience when they have a question or need to file a claim.
Manual processes risk human error, whereas automation collects information accurately and transfers it through various other processes. Automation delivers the right information to the right people at the right time, simplifying the customer experience and keeping claims processes moving.
Whether a claim is for professional liability, cyber liability, specialty lines, or some other type of insurance, policyholders often assume that the claims process will be a hassle. One of the benefits of insurtech that pleasantly surprises most insureds is how well a claim gets handled, which inspires loyalty and retention.
Moreover, insurtech allows insurance companies to identify trends and target areas of potential exposure. Better decision-making protects customers and helps keep their premiums low.
Insurtech can help insurance agencies better assess risk and identify fraudulent claims.
The insurance industry has historically used data such as claims history and demographics in assessing risks and establishing appropriate premiums. The explosion of digital data has given underwriters and claims adjusters a wealth of new data to inform their processes and procedures.
For example, a 2021 study showed that 80% of respondents now use predictive modeling to combat fraudulent insurance claims. This percentage represents a 55% increase since 2018.
Insurtech can provide data that helps insurance agencies develop new products and services.
Technological advances are changing the way consumers live and work. Big changes in people’s lives call for changes in their insurance needs.
Big data, artificial intelligence, automation, machine learning, IoT, and blockchain technologies position insurance companies to have greater insight into consumer behavior and their claims history. Such technologies are the foundation of insurtech. This knowledge is the key to developing new products and services that will meet the needs of modern insurance customers.
Reap the Benefits of Insurtech with Relay
Insurtech is disrupting the insurance industry in a good way as it enables insurance companies to process large amounts of data at scale, which is not possible with manual processes. Overall, insurtech facilitates the power of data and analytics to enable insurers to prevent fraud, reduce risks, increase their margins, and improve profitability.
Relay automatically collects and organizes quotes from insurance companies, MGA/MGU, and reinsurers. Smart Customer Proposals™ are white-labeled with the insurer’s brand for a seamless customer experience. Relay also allows for multi-line submissions, including professional liability, cyber liability, and specialty lines, saving lots of time on the quoting process.
To learn more about the benefits of insurtech and how Relay can streamline your insurance operations and processes, contact one of our experts at Relay today!
