The insurance industry is always complained to be a slow adopter of new technology. Nevertheless, in recent years, there is a considerable shift in the industry towards using new technology. The use of Insurtech is an excellent example of the same as per Bahaa Abdul Hussein.
The term Insurtech, as the name implies brings together technology and insurance. It should be stated that it is revolutionizing the insurance industry. It does it by improving customer experiences. Also, it helps insurance companies with the creation of new business models. Even, they are able to get help with increasing efficiency. In this comprehensive overview of this technology, Bahaa Abdul Hussein lists out how it helps insurance companies.
How Insurtech Helps Insurance Companies?
Improvement in Customer Experiences:
There is a great change in how customers interact with insurance companies because of Insurtech. Many insurance companies own mobile applications these days. With the help of these applications, customers get better service. For instance, they can easily buy and manage their policies via the app. Also, they can file their claims and can get customer support right on their smartphones with these applications.
The level of convenience they get from their insurance provider increases their loyalty. Also, with Insurtech, insurance companies are able to use data analytics for personalizing policies based on the needs of customers. Even, Insurtech can help them provide more value to customers. In turn, retention rates will improve.
Increase in Efficiency:
Insurtech is automating and streamlining insurance processes. In turn, it becomes possible for insurance companies to engage and more accurate and faster claim management, pricing and underwriting. For instance, insurance companies that use machine learning algorithms are able to evaluate data. Also, they can spot patterns that traditional underwriters overlook. So, the time taken otherwise for underwriting policies reduces.
In turn, it is possible to provide a better experience to customers. In addition, insurance companies using Insurtech employ blockchain technology for the creation of smart contracts. As a result, they are able to automate policy claim processing and policy insurance. With this, they can get rid of intermediaries and bring down paperwork.
Conclusion:
Apart from creating the impacts listed above, Insurtech also helps insurance companies create new business models. When this technology emerges to new levels, insurance providers start adopting it. Also, when traditional insurance companies adopt this technology, they can serve customers better. In turn, it is possible for a great improvement in the insurance industry very soon.
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