What is Insurtech?

Insurance companies have been around for hundreds of years and are highly regulated. These regulatory barriers have limited competition to some extent, which is why there was no immediate need to modernize technology.

However, these companies often use systems known as Legacy Technology.

The concept of evolving technology in the insurance space isn't new. About 10 years ago, "Insurtech," short for Insurance Technology, became the buzzword for innovation in the insurance industry.

The idea of #insurtech was born, and the insurance industry hasn't looked back since.

So what is Insurtech?

Insurtech is not only a term for #InsuranceTechnology, but it describes technology companies with a focus on insurance as an industry. Insurtech companies typically do not sell insurance; they develop technology solutions designed for the insurance industry.

Insurtech solutions allow insurance companies and agencies to do business more efficiently.

For example, submitting a commercial lines policy to multiple carriers within legacy solutions could take 1-5+ hours depending on the line of business and carriers. Within a single-entry solution like Tarmika, you can receive a quote submission for the same number of carriers in under 10 minutes.*

There are also many insurtech companies, and they aren’t all the same. Insurtechs exist to streamline billing, claims, rating/underwriting, and more.

While each insurtech is unique and has its own focus, they all use technology to solve problems.

What’s the purpose of insurtech, and why should I care about it?

Each insurtech aims to solve different problems within the insurance industry. The goal of insurtech is to increase efficiencies for insurance companies and independent agencies while creating a better user experience for consumers.

So why should someone who doesn’t work in insurance care about insurtech? Almost everyone needs some form of insurance.

Whether it’s personal or commercial, each individual expects the best level of service provided by their #InsuranceAgent. Insurtech aims to enable agencies and carriers with the tools to provide exceptional service to insureds.

What is the future of insurance technology?

"Insurtech" has come to represent a new generation of insurance companies and agencies. These companies and agencies offer insurance products to consumers where and how they want to buy them.

The growth for this industry is exponential. Insurance companies are supporting the insurtechs that help them expand distribution, pay claims faster, and reduce claims and operating expenses.

As the #insurance industry continues to evolve, the use of technology and insurtech solutions will become increasingly important in enabling agencies and carriers to provide exceptional service to insureds. With the support of #InsuranceCompanies, the future for insurtech looks bright, and we can expect to see continued growth and innovation in this industry.

*Time to quote may vary by agent dependent upon lines of business and carrier volume.