The fourth industrial revolution is here. Thanks to the constant development of Artificial Intelligence, new business models have been developing during the last years. Inside of the insurance sector, a sector that is well-known by its more traditional methods, this revolution comes from the hand of Insurtech, the technology that is designed to increase the efficiency and efficacy of insurance companies.
Today, we are going to talk about some benefits of Insurtech:
1. New products
As we have already mentioned last week, new generations along with SMEs are demanding new and more personalized products, and Insurtech is here to provide them with solutions. All these is possible thanks to AI, and also because nowadays open data is more accesible. AI analyzes the data making former models keep developing and combining them with new products. On the other hand, SMEs have more insurance options thanks to Insurtech. It became easier to find the right option for their business and, for insurance companies, for decreasing their risks.
2. Real time information and more accuracy
Open data is updated constantly. Users are the ones who upload it, and, thanks to AI data related with lifestyle is also uploaded. Thanks to open data, underwriting processes became faster, easier and more accurate. Nowadays, it is easy to detect risks or possible frauds with this technology. In other words, it means a benefit for insurance companies since they are more protected.
3. Lower costs
Another benefit of insurtech is that, as we have just explained, processes are faster and more accurate, making insurance companies save time and money.
Companies that implemented insurtech will become more competitive. Apart from the benefits that we have mentioned already, as the insurance industry is a very traditional one, the companies that start using Insurtech will highlight among the others.
5. New ideas
Some Insurtech start-ups grew up inside of accelerators where they work along with all different kind of companies. This helps them to exchange ideas and learn from different business models. For example, we at Wenalyze entered the GoHub accelerator by Global Omnium.
And you, are you implementing Insurtech already? Which benefits have you experienced since that moment? Tell us in the comments.