Why is Insurtech important?

With the arrival of Insurtechs around 2010, they were seen as an offshoot of Fintech. Over the last few years, they have emerged as an important industry sector in their own right. So why is Insurtech important?

Focus on Customer Experience

A common theme with the majority of Insurtechs is a desire to improve the customer experience. This comes in many different forms:

·        By Miles is looking to make car insurance fairer for lower mileage drivers.

·        The Floow are doing the same but for all drivers by introducing telematics to understand risk and give fairer premiums.

Technology Innovation

Using technology to provide innovative solutions for insurance is of key importance for the Insurtech sector. Examples of this are:

·        Hiro provides home insurance and reward homeowners who use smart technology to protect their homes.

·        Flock provides drone insurance which has allowed their pilots to use them in a wide range of commercial situations.

Simplifying and Speeding up Processes

Traditionally, insurance claims have been lengthy processes. Now Insurtechs are leading the way in changing this perception:

·        FloodFlash use sensors installed in the buildings of cover holders to detect floods which means that claims can be paid rapidly.

·        Qlaims are using technology and fresh approaches to provide a more efficient claims process for all involved.

These are a few examples of how the Insurtech sector has established itself as an important part of the insurance sector. There are many more to discover.