Technology has been transforming every aspect of the insurance business and even the General Insurance sector is not left behind, it is steadily adopting technology not only for optimising costs but also for improving operational efficiency. The costs are beginning to decrease as new ways of doing business evolve and emerging technologies, such as artificial intelligence (AI) and the Internet of Things (IoT), not only provide customers with a better experience but also streamline back-office operations. InsurTech is reshaping the insurance industry.
For the uninitiated, General insurance is basically the non-life insurance system which includes automobile, homeowners’ policies and provides payment depending on the loss from a particular financial event. While comparison engines are a common business model for General insurtech companies where start-ups like Coverhound, The Zebra and Insurfy are making headway, there are other innovative business models worth noticing.
Take for example, Trov’s mobile-only, on-demand property insurance solution where users can insure just the object they care about for a specific time frame. For example, a college student going on a road trip with his friends can insure just his guitar for the duration of the trip. The application process in done completely through a user’s mobile phone and is completed by swiping insurance on products on and off. Claims are processed with the use of in-app chat making it a hassle free experience.
Another Insurtech Hippo Insurance, a Home insurance company has recently collaborated with Zesty.ai to leverage computer vision technology and AI into its data-driven underwriting processes, further enhancing its customer’s on boarding and claims experience.
An innovative automobile insurance company, Metromile has a pay-per-mile policy structure that uses factors such as location, age, and driving history, for calculating a monthly rate of insurance premium. While Snapsheet enables car insurers to provide their customers with easy mobile claims processing. A customer can use the Snapsheet app to take a photo of his damaged car after an accident. Snapsheet then enables insurers to ensure quicker cycle time for insurance adjustment and claims processing.
With a customer centricity approach, general insurers are transitioning to business models that allow easy access to insurance services with the help of technology. We feel that with the growth of InsurTech, Regtech needs to grow at the same pace for compliance, monitoring and fraud prevention in the Insurance space.
Credits : Akhil Handa,Aparna Anand