Insurtech has become a major conversation in the insurance industry as the rise of specialized insurance tools change the way insurance agents, brokers, and carriers communicate with customers and one another. Here, we look at the rise of insurtech and its impact on insurance careers now and in the future.
What is Insurtech?
The word “insurtech” is a combination of “insurance” and “technology.” True to its name, insurtech focuses on the intersection between the insurance business and technological tools used to shape and enhance that business. Insurance companies have been interested in applying new technologies to their work for centuries. In recent years, insurance companies have embraced the Internet, mobile apps, and similar tools for distribution and claims.
Insurtech isn’t merely a promise of the future – it’s a present reality. Insurance distribution relies on insurtech in the form of agent, broker, and customer platforms, APIs and other tools that de-silo insurance company efforts, and even videoconferencing to hold remote meetings between agents and customers. In claims, the use of insurtech includes not only digital platforms and data analysis but also more concrete tech tools. For instance, some claims adjusters rely heavily on drones to survey sites and gather information about losses. Even underwriters are relying on insurtech to improve their work. Today’s AI and machine learning tools allow for more targeted underwriting and the use of alternate forms of coverage, such as parametric insurance policies.
A Look at the Future
Insurance technology is changing rapidly. As it does, it affects the work agents, brokers, and carriers do. In the coming years, insurance professionals can expect AI to streamline many of the once-tedious aspects of their work, such as filling out forms. Automated platforms can ensure that customer information like names and addresses transfers seamlessly from one form to the next. For claims adjusters, AI and similar tools can help pinpoint the nature and amount of losses as well as reducing time spent on paperwork. These tools free up insurance professionals to focus on aspects of the job tech can’t do – like building personal relationships with customers.