Sustaibility is the order of the day observed Bahaa Abdul Hussein. People are demanding that governments and private corporations practice sustainability in all areas. The insurance sector is also practicing sustainability and it is Insurtech that is driving the process. It is expected that this trend would grow in the days to come.

Importance of Insurtech for Sustainability

Insurtech is the use of technology in insurance. Insurtech has brought innovation and automation to the insurance industry and is driving improvements. It is not a surprise that Insurtech is playing a key role in ensuring sustainable insurance practices.

There are different ways in which insurance companies can follow sustainability in their activities. For example, they can promote sustainability through the insurance products they offer. Insurtech firms can use satellite technology to help in risk mitigation and thus reduce carbon footprint. It can promote renewable energy by offering specific products for the industry.

Here are some of the benefits of following sustainable practices.

  • When sustainable insurance practices are followed, risks are reduced. Risks of natural disaster can be reduced, which is beneficial and prevents losses.
  • Customers today want companies to promote sustainability. If an insurance company follows sustainable practices, customers will prefer it and buy its products.
  • Practicing sustainability allows insurance companies to develop better products. The products would be in line with present market needs.

Challenges and the role of Insurtech

Following sustainable practices is challenging, especially for small companies. While large companies can allocate a budget for this program, small companies find it difficult. Data related to carbon emissions and energy use are not easy to collect and analyze. This is where Insurtech can help. Insurtech companies use technology that can easily help surmount all challenges.

  • Insurtech companies use Artificial Intelligence, Predictive analytics, and other such tools. These tools help in overcoming these challenges.
  • Insurance processes like underwriting can be automated thanks to Insurtech. The process reduces the risks involved in underwriting. It does this by looking at past data to predict future trends and events.
  • Insurtech firms are promoting green technologies that benefit the environment. The need to reduce carbon footprint has been understood. Using sustainable insurance products is one way of achieving this. Environment conscious customers would prefer such products and Insurtech can help deliver it.
  • Insurtech has replaced the traditional methods of working with new methods that offer a better customer experience. The innovations would be welcomed by customers and they would soon be the norm.

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