As more and more insurtech startups appear on the scene, brokers have been forced to ask themselves, “what is insurtech?” While some startups may be geared toward consumers, others are aimed squarely at insurance brokers and agents.
In this blog post, we'll explore how brokers and agents can benefit from insurtech partnerships and how to leverage these new technologies to sell more cyber insurance.
What Is Insurtech?
Insurtech is a term used to describe the use of technology in the insurance industry to streamline processes and improve customer experience. Insurtech can encompass various applications, from developing new ways to assess risk and pricing insurance products to using data analytics to understand customer behavior better.
In recent years, the insurance industry has been under pressure from declining profitability and rising customer expectations. In response, insurers have been turning to technology, particularly insurtech, instead of hiring more personnel to address some of these challenges. While the full potential of insurtech is still largely untapped, it holds considerable promise for helping insurers remain competitive in the future.
One of the main benefits of insurtech is that it can help insurers to assess risk more efficiently. By making use of data and analytics, insurers can more accurately price their products and reduce instances of fraud and errors. In addition, insurtech can help insurers improve the customer experience by providing transparency and choice in the product selection process. Ultimately, by using insurtech solutions, insurers can become more efficient and responsive to the needs of their customers.
Insurtech Leverages Data to Create Efficiency
By leveraging data, insurtech companies can create efficiencies in how insurance is underwritten and delliverd. This has resulted in faster claims processing, lower costs, and improved customer service. In addition, insurance technology has been able to help insurers better assess risk and tailor coverage to the unique needs of each individual who needs coverage.
Determined to transform the way insurance is written and sold, a significant amount of venture capital has flowed into insurtech startups. Many of these companies are leveraging data innovatively to create more efficient processes in the insurance industry.
For example, some startups use data gathered by sensors and connected devices to generate insurance policies automatically. This is often done without the need for a human agent, which can save time and money.
Other startups are using data better to understand customer risk profiles and price insurance policies accordingly. This helps to ensure that customers are paying fair prices for their coverage. Ultimately, data is helping to make the insurance industry more efficient, and leading insurtech startups like Relay Platform are at the forefront of this data-driven revolution.
How Insurtech Benefits Insurance Agencies Selling Cyber Lines of Business
Cyber insurance is becoming a hard market. According to the Identity Theft Research Center, there were a record number of data breaches in 2021, which amounted to a 68% increase over the prior year. Breaches result in rising premiums, causing businesses to shop around for coverage.
Companies are becoming more aware of the rise in cybercrime and the value held in cyber lines of business. Nonetheless, it can be difficult for them to add one more line item to their budget. insurtech goes further by automatically mining data and comparing it against historical data.
Accurate data, along with historical data, helps the software make more accurate predictions about the potential for risks and automatically prices policies fairly. Pricing is very important, as businesses see steep increases in cyber insurance premiums.
By harnessing the power of insurtech, insurance agencies can offer a wide range of cyber products and coverages that lead to more sales and a superior customer experience. For example, through real-time monitoring of customer behavior, agents can identify opportunities to upsell or cross-sell products. In addition, insurtech can help to streamline the quote and application process, making it simpler and faster for customers to get the coverage they need.
Relay Platform: Taking Insurtech by Storm
Relay is a cutting-edge insurtech platform that streamlines the process of adding specialty lines to client proposals. It offers a friendly interface that makes it easy for brokers and agents to get quotes instantly or through an enhanced email process.
In addition, Relay automates the proposal creation process, making it faster and easier to explain the coverage your clients need. Cyber insurance is one area where Relay really shines, but it also supports many other lines, such as management liability and business owner’s policies. Contact us if you're looking for a way to streamline your operation and improve your bottom line.