InsurTech refers to technological innovations that are created and implemented to improve the efficiency of the insurance industry. InsurTech powers the creation, distribution, and administration of the insurance business. Insurtech is a combination of the words “insurance” and “technology,” inspired by the term fintech.
Insurtechs target primarily pure risk insurance, where they have developed access points to the value chain based on innovation. Technologies such as telematics and the Internet of Things have enabled new product development in motor, home, and health that drive customer engagement and retention.
Examples of Insurtech Solving Traditional Insurance Challenges: Claims management, Underwriting automation, Smart contracts, Fraud & risk prevention, Customer identification verification.
Insurtech is the term given to companies and products that are using technology to innovate within the insurance industry. It comes from joining ‘insurance’ and ‘technology’, much like the word ‘fintech’. In fact, some people would describe insurtech as a subset of fintech.