If you follow the action in the insurance industry, you know that InsurTech has been a hot trend these last few years. In a risk-averse industry like insurance, technological innovations are often seen as disruptors.
InsurTech solutions have definitely changed the way we all do business. However, I encourage you to not consider InsurTech as a disruptor of business as usual, but as a new opportunity to optimize your agency. Here’s what you need to know about this game-changing trend.
What is InsurTech?
A mash-up of the words insurance and technology, InsurTech is the use of technology to uncover cost savings and efficiencies in the insurance industry. Though InsurTech’s been around since the early 2010s, its growth has accelerated over the last few years. Deloitte estimates InsurTech firms have generated approximately $16.5 billion in investments since 2010, indicating many investors believe that InsurTech is the future of insurance.
InsurTech companies rely on data analytics, artificial intelligence, and machine learning to build highly customized insurance policies for consumers. While they may offer traditional products such as personal auto coverage, homeowner’s coverage and business owners’ policies, they may use data from telematics devices, smartphones, or even wearable tech, such as smart watches, to dynamically price premiums. The telematics programs such as Progressive’s Snapshot® or Allstate’s Drivewise or Milewise products are examples of this innovation in action.
Other InsurTech companies use data to build highly customized, dynamic coverage products. They can craft on-demand insurance coverage for small events, such as borrowing a friend’s car, or offer a variable group health insurance premium based on employees’ healthy behaviors.
InsurTech is not only helpful with policy design, it is also innovating how carriers underwrite policies and manage claims. Many traditional carriers have adopted InsurTech solutions to make their claims and underwriting processes more efficient and cost-effective while keeping their product offerings fairly conventional. However, new carriers, such as Smart Choice® partners Lemonade and SIS Insure, employ InsurTech solutions from policy to balance sheet.
What’s It Like to Work with an InsurTech Carrier?
When agents work with an InsurTech carrier, they can expect a digital-first experience for themselves and their clients.
InsurTech firms tend to use electronic appointment processes to onboard new agents and rely on cloud-based tools to quote, bind, and issue policies. The customer experience with an InsurTech carrier is similar, with digital access to policies and an online claims experience.
How Does InsurTech Create Opportunity for Me as an Agent?
Working with InsurTech carriers can help you create efficiencies in your own agency. This can be as simple as eliminating paper apps and policies or as complex as using an InsurTech carrier’s data tools to craft ultra-custom policies for your customers. An InsurTech firm’s streamlined, automated claims process helps you look like a rockstar without having to micromanage the claims experience for your customers. Most InsurTech carriers offer digital marketing tools to agents to make expanding your digital reach simple, from social media content to adding online quoting tools directly to your website. These innovations help you work smarter, not harder. Who doesn’t want to do that?
InsurTech is here to stay, and it is going to grow. By getting on board with InsurTech solutions now, you can stay ahead of your competition. As always, your State Director is here to help. Reach out to them to learn about the InsurTech carriers that are available in your state.
Smart Choice® InsurTech Carrier Partners
- SIS Insure
In this business, we handle so much sensitive personal and private financial consumer information that we have to be vigilant about staying on top of cyber security. From phishing attempts to identity theft to ransomware attacks — everyone is a viable target and should be prepared. Check out the 2022 Issue 1 of Smart Choice Magazine for tips on protecting yourself and your clients from cyber threats.