After a modest start in 2010, insurtech has finally become a significant influencer in the insurance world. While buying insurance online is still more challenging than ordering a package from Amazon, customers can now purchase policies without even knowing what their insurance agent looks like.
Here is how insurance agency management systems and over 3,400 other insurtech companies transformed the insurance industry in 2022.
A key feature of insurtech is extreme customer individualization. Ultimately, insurance agents have always relied on algorithms to calculate coverage. But its new methods result in unique policies that better fit a person’s needs. For example, a customer’s level of physical activity might influence his health insurance policy, or his safe driving might lower his car insurance premium.
One reason insurtech can customize policies is the way it collects relevant personal information. Therefore, some of the innovative data sources it uses include the following:
Insurtech companies then use artificial intelligence to sift through the information and find what is relevant to a customer’s risk. Likewise, representatives can use their insurance agent portal software to gain quick access to the information they need to create quotes.
Processing a claim is a notoriously slow process. Traditionally, an adjuster reviews each claim individually. The next step they would take would be to inspect the property for damage and determine the amount the company would pay. The insurance company relies on the adjuster, and the policyholder must wait weeks or months to learn whether to expect reimbursement.
In 2022, many customers of insurtech companies enjoyed faster turnaround times for claims. One reason for this change is the incredible speed of automated processes. For example, a client can upload pictures of a damaged vehicle rather than wait for an agent to inspect it. This technology also frees up insurance agents to perform other tasks.
Insurance software such as Verity made it easier for people to get an insurance quote online without visiting an office. In some cases, clients do not even need to talk to a live representative but can instead ask questions of a chatbot. Another nice feature of insurtech is that customers can log in to their insurance management system, view their policies, and submit claims anytime.
Some companies do not have brick-and-mortar locations but are fully digital. This business model reduces overhead costs and allows for less expensive policies. It also provides job security for insurance agents in the event of another pandemic or lockdown situation. Another type of upcoming branch of virtual insurtech is that of an online insurance comparison service, which helps drive consumer prices down even more.
Insuretech’s impact on the insurance industry was undeniably significant in 2022, thanks mainly to its use of artificial intelligence and improved data collection techniques. By customizing policies, speeding up claims, and making products like Verity more available, it is clear that advances in modern technology are ushering in a new standard of efficiency. Things are changing rapidly in the insurance industry, and insurtech is leading the way.
Say goodbye to outdated systems and begin looking at a solution that will provide what you need to increase productivity, decrease costs in the long run, deliver frictionless transactions, and remain competitive in today’s environment. For more information about VRC’s Verity software and to book a demo, click here or contact us at 541-209-0700.
