Insurtech

Introduction
Digital technologies are present in every realm of modern life. With change
happening so fast, it can be challenging for insurers to innovate with confidence or
even to know where to begin. Start-ups and enterprises invest billions of dollars in
Insurtech innovation programs to modernize the industry. Business process
automation, chatbots, machine learning, block chain, and Internet of Things —
thanks to the latest technology, insurance companies are minimizing the human
factor and optimizing their performance.

Insurtech—short for "insurance technology"—is a broad category of constantly

changing technologies used in the insurance industry. Any technology that's used by
an insurance company to increase the efficiency of its operations could be
considered insurtech.

The term “InsurTech” refers to the innovative technologies and new digital tools
developed to optimize the performance of insurance companies, to deliver a better
customer experience, and unlock the potential of advanced analytics. In a more
narrow sense, the definition of InsurTech means the combination of insurance and
technology to bring game-changing solutions into the business.
History
The history of insurtech dates back to 2010. Berlin-based Friendsurance was among
the first to embrace technology in the insurance space. The idea to create the first
peer-to-peer (P2P) insurance community was inspired by a small group of people
who wished to offer support to each other in the event of a loss.

Friendsurance established the P2P insurance model to incorporate smaller groups

into a bigger insurance pool and offer claim-free yeas with a cash-back bonus. In
India Acko General Insurance, Policy Bazar etc. are among the first who introduced
insurtech to Indian insurance industry.

Over the past decade, the insurance landscape has shifted dramatically. Demand for
new technology and the talent to create it knows no bounds. Consumers crave
speed, convenience, and transparency more now than ever before. According to CB
Insights, global investment in insurtech rose from $348 million in 2012 to Global
Insurtech Market revenue is valued at 5.48 billion in 2019 and is expected to reach
10.14 billion by 2025, growing at a CAGR of 10.80% during the period 2019-2025.

No wonder why insurance has followed suit. It's the only way to keep up in the digital
era.
How InsurTech is changing the Insurance
Industry
The term revolution is most probably used by various tech writers these
days, but still, it is difficult to understand the change in the insurance and
reinsurance industry. This sector is going through the revolutionary change
because many insurance companies have taken the initiative to leave
behind the obsolete way of working and are adapting the innovation in
technology at the global level.

You just simply need to understand that “Technology and innovation are
key factors in improving the economy”. Near about 63% of the Insurance
companies have adapted the Insurtech for enhancing their business
efficiency.

Latest Insurtech Trends Reshaping Insurance Industry Aspects

1. Emergence of Artificial Intelligence

AI has become popular among the industries globally. AI helps the

insurance companies to develop their analytical protocols, and advance
their data gathering technique. Around 79% of insurance executives agree
that AI will revolutionize the way of gathering information from customers as
per their requirement and interact with them.

2. Digital Transformation

Insurance Industry is the most competitive industry and has to face several
challenges. The very first challenge for Insurance Companies is to meet
customer expectations and behaviour. Customers nowadays are addicted
to digitization and the new generation is more attracted to these
technological changes. So to keep up with the customers and survive in this
competitive market, Insurance companies need to understand and bring
digital transformation in their workflow. Because it’s no longer about beating
the small, but the fast beating the slow…!!!
3. Design for Customers and Inspire their Behavior 

Consumer behavior is unpredictable, but yes, companies can have some

idea on the basis of gathering information from customers. Around 80%   of
the insurance organizations agree that the customers are their first priority
and they must accordingly design various plans and policies for the
customers to gain profits and customer loyalty, which is always attractive.

Human behavior flows from three main sources that are Desire, Emotion,
and Knowledge, so the Insurance companies should be capable of
understanding these complexities and plan various strategies. 
Implementing these strategies with the help of technologies available in the
market can enhance the reputation of the business.

4.Cyber-Security and Risk

Cybercrime is becoming the biggest problem among every industry. And for Insurance companies,
it’s a new challenge stimulated. Cybercrime is not only affecting the consumers, but also the
insurance firms.

In 2015, a major data break off occurred at one Healthcare insurer that comprised the private
records of more than 78 million customers.

In the same year, the  Insurance Information Institute stated that protection against cybercrime will
be the new area of growth in the coming years. And the software companies such as McAfee and
CSIS reduced the threat of data loss to an extent. We can say this is also one reason; Insurance
companies should leave the obsolete work style and move with the time.

5. Hire Experts and Set New Standards

  Subcontracting the non-core activities has become the common aspect in

the Insurance sector. According to the survey by Accenture, around 76%
insurers agree that to cut down the competitive edge in the
market, outsourcing insurance back office  tasks is a viable solution. This
has become the cost-effective factor amongst the Insurance Companies,
especially in the developed countries like US, Canada, Australia and many
more, it has set a new standard across the globe.
InsurTech Market Size
Global Insurtech Market revenue is valued at 5.48 billion in 2019 and is expected to reach 10.14
billion by 2025, growing at a CAGR of 10.80% during the period 2019-2025. The insurance
industry with global premiums exceeding US$4.9 trillion in 2017, is one of the most complex
businesses around.

 The global insurtech market is expected to grow significantly during the forecast period,
owing to the factors, such as simplification of the claims process, improved communication
with the client, and the capabilities to implement automation.
 Health insurance market is expected to have the highest growth rate in the upcoming years
as the adoption of Insurtech is significantly higher compared to that of other insurance
sectors, such as property and casualty, vehicle, and others.
 The differentiating factors about the industry are their innovations and unique solutions to
improve the insurance value chain that are attracting funds from legacy players and
investors worldwide.

The outbreak of COVID-19 is anticipated to have a positive impact on the market. Numerous
insurance companies are reconsidering their long-term strategies and short-term needs. The
COVID-19 and its impacts are accelerating the implementation of online platforms and new
mobile applications to meet consumer needs. 
How Does Insurtech Work?
Since insurtech is new by definition, its applications are constantly evolving.
Generally speaking, insurtech streamlines and enhances backend processes,
improves the customer experience, and saves the insurance company money.

Chatbots and smartphone apps are examples of how insurtech streamlines

the backend process. Insurance companies no longer need to hire customer
service employees to respond to every customer's concern. Many can be
answered by chatbots that automatically respond to inquiries day and night. In
addition to simplifying the customer service experience, this also saves the
company money.

Smartphone apps improve the customer experience, as well. Instead of

having to print out photocopies of licenses and other paperwork, a customer
can simply snap a picture with their phone and submit it through the app. This
saves time and resources for both the customer and the company.

Key applications of insurtech

Customer identity verification

Insurance companies, reinsurers, and brokers must fulfill Know Your Customer (KYC)
requirements on all of their counterparties. This means collecting a considerable
amount of data on their customers in order to verify that they are who they say they
are. As you can imagine, identity verification has traditionally been quite time-
consuming.

Customer identity verification is one area that insurtech offers relief. For instance,
PricewaterhouseCoopers (PwC) and Z/Yen have developed a blockchain-based
prototype that is designed to expedite this crucial process. It stores records of
customer documents and evidence of validation from issuing authorities. It also gives
the company, reinsurer, or broker the ability to maintain control of their customers’
records.
Claims management

According to a PwC report, blockchain technology can be used to develop a single

version of claim documents that can be evaluated and monitored by underwriters in
real-time. This means that blockchain technology can allow all parties involved in a
claim to manage the process simultaneously.

Blockchain also presents the opportunity to integrate all documents created in the
claims process and make them available to underwriters. Not only does this make it
easier for underwriters to manage claims, but it also reduces the cost of
administrating claims.

Another way in which insurtech is making claims management easier is through

smart contract elements that allow for the automation of many processes. This brings
about a number of benefits like increased flexibility and transparency, as well as
improved relationships between customers and insurers.

Smart contract formulation

Insurtech has also made it possible for insurance companies to develop paperless
smart contracts. A smart contract is basically a blockchain-based contract between
two or more parties. Automated blockchain protocols then facilitate, authenticate,
and enforce negotiation or performance of a contract.

For example, consider a life insurance policy that pays an amount to a designated
beneficiary following the death of the policyholder. The smart contract performs
instantaneous checks on online death registers to automatically determine and
trigger the payout.

Smart contracts increase the efficiency and speed of claims management.

Agreements registration, authentication, and implementation have become much
easier as they can be enforced by computer protocols without the intervention of a
claims assessor.

Not only does this drastically reduce the risk of fraud, but it can also increase
customer satisfaction. Technology allows insurance companies to manage insurance
claims in a more responsive and transparent manner.
Fraud detection and risk prevention

The Insurance Information Institute reports that fraud accounts for about 10 percent

of the property and casualty insurance industry’s incurred loss adjustment expenses
annually. As a result, companies invest millions of dollars every year to ward off
insurance fraud.

Insurtech can also help detect fraud and eliminate errors by presenting a
decentralized digital depository. This means checking the authenticity of
policyholders and their claims and providing a complete transaction history. It can
prevent the duplication of transactions, eliminate third-parties and document all
transactions for public records.

Insurtech can also facilitate the storage of encrypted personal data and a public
ledger.  The ledger also has details regarding prior claims that have been made. This
valuable information enables insurance companies to detect and prevent insurance
fraud.

Payment processing

Insurtech is also being used to streamline payments of insurance premiums and

claims. For example, take auto insurance policyholders who have an account from
which payments are drawn on a continuous basis in proportion to the miles they
have driven. The telematics system in each autonomous vehicle records and conveys
the miles driven by the vehicle instantaneously, and the premium is automatically
calculated and paid.
Use of Emerging Technologies in the Insurance
Sector
Emerging technology changes the way how insurance companies work—and these changes
are more than in place. Global insurers focus on improving digital capacities right now to be
“battle-ready” and be able to adapt both to shifting market scenarios and evolving customer
demands in the future. Here is the InsurTech overview of the cutting-edge solutions that will
transform the insurance business in the near future.
Artificial Intelligence
The insurance industry was one of the first to start using artificial intelligence-based
technologies to automate repetitive processes, optimize risk analysis, and improve
customer interaction. With the sweeping power of AI at your side, you can, for
instance:

 deploy bots that would review claims autonomously and save your InsurTech
business loads of manpower resources while also providing instant claim settlement
for customers;
 provide fitness trackers and apps for the health insurance segment;
 provide vehicle tracking devices for automotive insurance;
 implement all sorts of similar sensors and trackers that feature truly dynamic,
intelligent underwriting algorithms.

Unlike other industries, insurance agents do not interact with customers on a regular
basis. Therefore, the ability to use customers’ data to understand their preferences is
extremely important. AI can be useful in collecting data, sorting the information, and
providing accurate customer’s profiles. You can call it a revolution in a digital world.

However, there are certain risks in using artificial intelligence in the insurance sector.
It may increase the vulnerability of companies to cyber-attacks and technical failure,
leading to larger losses and disruptions. Companies will also face difficulties in
transferring responsibility from person to machine and its developer. A new concept
of risk management is necessary, taking into account potential failures caused by the
use of artificial intelligence.
 

Machine Learning
Machine learning has great potential in the InsurTech insurance sector, especially in
predicting the risks. Machine learning is ideal for software collecting data from the
IoT sensor. They can be installed at home as a part of the Smart house system or in
a car (telematics).

However, the use of technology in the insurance sector is not limited by the
mentioned solutions. Pre-trained machine learning examples are helpful for
systemizing unstructured data: transcribing calls, recognizing the handwritten
records, identifying the assigned risk, etc. You can use the technology to program
the chatbots so they would speak like a real person. Risk modeling, underwriting,
claims handling, and distribution technology are the most important reasons to
consider using machine learning for your insurance company.
 
Internet of Things
The Internet of Things (IoT) is a network or system of interconnected devices,
sensors interacting with other devices through the Internet. These objects, or
“things,” have memory cards and processors, which allows transferring data to other
devices. You can also program them to implement certain actions and react to
external circumstances.

This technology is not new and is already common in the InsurTech industry. There
are devices to control a person’s health, sensors to put on transport, geographic
information systems (GIS) and many more.
60% of insurers believe that they can change consumer behavior by leveraging the
IoT in the nearest future. They will carry out not only quantitative but also in-depth
qualitative analysis of data on insured objects. Now insurers only compensate for the
damage, but soon you may be able to forecast the potential damage. The integration
of IoT technology will contribute to the development of new reinsurance products and
services.

Smartphone Apps
The mobile market is constantly growing, and so is the number of people using
smartphones worldwide. Startups need to adapt to the new trends and the insurance
industry is not an exception. The Mobile Health market alone is set to exceed $289.4
billion USD by 2025. Insurance companies will use mobile technology prevalently to
interact with their partners and customers.

Nowadays, a potential client of an insurance company does not always visit the
website looking for the necessary information. A mobile application solves this
problem and saves time, and the company grows its customer base.
A full-fledged Insure tech application may help with:

 finding out more information about the company and services;

 integrating marketing technology;
 selecting suitable service packages;
 calculating the cost of the insurance policy;
 buying an insurance package without visiting the office;
 contacting the insurance agent.

Another application example is the app for insurance agents. They are constantly on
the move, meeting potential clients and making deals with the partners. Additionally,
they fill out documents, keep records, and write reports. It takes a lot of time, which
could have been spent on communicating with customers. A mobile application
allows to optimize the workflow, increase the agent’s motivation, and reduce the cost
of daily tasks. To ensure this, it is enough to provide quick access to the company’s
data, marketing materials, and tools for making deals outside the office.
Blockchain
Development based on the blockchain technology, dedicated to automating the
insurance industry, is a very promising direction. In this area, the technology is
already used to mitigate the above-mentioned challenges of protecting, managing,
sharing, and monetizing large volumes of data, implementing third-party
transactions, and setting up optimal reinsurance—all with the help of smart
contracts, separation by blocks within a centralized network, and good deal of
automation.

Insurers face difficulties with assessing all the risks to estimate the cost of the
insurance policy and quotes they can afford. The parties often make a deal without
having reliable information about the insurance object and not trusting each other.
For example, the policyholder may remove information about illnesses from a
medical card or the car seller may conceal information about unrecorded minor
accidents.

To remedy the situation, insurers are considering blockchain, which is hard to fake.
Blockchain can be described as a digital notebook that has many owners. You can
make new entries, but you cannot correct the existing ones. The blockchain
technology helps eliminate double compensations for one insured case. The system
immediately documents the violation.

As much as this tech concept is fruitful and promising, though, it still has to
overcome many legal and regulatory hurdles to become an insurance industry
standard. The possibilities in that aspect, however, are limitless and are being
explored far and wide by acting companies and startups alike on a regular basis.
 

Big Data
Successful insurance companies should have a planning and reporting software. It
consists of data storage, RegTech solutions, analytical and reporting tools. Big Data
is used to better understand customers, their behaviors, and preferences.
Companies seek to expand their customer databases using social media and text
analytics to get a more detailed picture. The main goal is to create predictive models.
 

Drones
Drones are not an insurance-focused solution, yet they still bring innovation to the
insurance process in many ways. They are very helpful for collecting accurate data
and evaluating it immediately after the insured event. In particular, there’s
Betterview, which offers property inspection services by drones, which can get you
hi-res images of residential and commercial properties from a bird’s-eye panorama
and all around.

There is also a Cloud-based software suite that comes along with the services,
which allows customers to sort, store, and analyze the captured images to facilitate
and support insurer’s underwriting inspection, loss control, and claims adjustment
processes.
Cybersecurity
Cybersecurity solutions for insurance are there to help insurers cope with
increasingly advancing and spreading cyber risks. On top of that, common
operations in the industry imply working with huge amounts of personal data, which
are fast to be targeted by users with criminal intent that realize how underprotected a
company’s way of doing business might be.

With transactions, data storing, and many other related processes sweepingly
migrating to the online realm, the need in data protection becomes even more
important. Industry surveys say that only about a half (43% to be exact) of most
existing insurers believe that they are prepared for digital attacks.

To tackle cybersecurity issues efficiently, the whole company must put protective
measures in a serious focus, collaborating between departments, prioritizing
transparent in-house communication, and planning cyber response guidelines.
Advantages
Rather than settling for costly products that don’t really fit their needs, insurtech
empowers customers to take control of their insurance. They can demand the products
that really benefit them.
Insurtech can better reflect the nuanced reality of a consumer’s everyday life, rather than
force them to fit in an industry’s narrow definition of their needs. Insurtech can also make
the process of obtaining insurance much easier, as insurtech startup Digital Fineprint
show with their software that fills out your insurance form based on social data.
AI technology can be used to provide a tailored service for consumers. It can quickly
summarise and present the most relevant and useful products far faster than a human
could. Insurify is an insurtech startup that uses artificial intelligence and natural language
processing to make it easier for consumers to buy their car insurance online.
The IoT can provide insurers with detailed data about customers to help them develop
and offer the right products at the right time. For example, tailored insurance for
motorists can be based on data sent to insurers from their car. The most responsible
drivers can benefit from a discount to their insurance.

Disadvantages
Along with the high tech solutions that can significantly improve the workflow of the
insurance companies, there are certain doubts about the common use of InsurTech. The job
of an insurance agent is highly regulated and needs to apply to the legal system and
regulation. The risks of financial losses should be minimized and there is no room for
experiments. The technologies used should be accurate and reliable, providing efficient tools
for data management and value chain. The tech insurance companies should eliminate the
risks of cyber attacks and data leakage and present high level of security to their partners
and customers.
Challenges
In the past and now, innovation has been partly stifled by the complexity of products and
services, which few outside the industry understand, and consumers often find
confusing.
Insurance is also not as exciting for consumers as other products which technology has
already disrupted, and the insurance industry suffers from an image problem.
It’s difficult to market products in a way that lots of consumers find appealing, especially
for the younger generation. It can be tough for people to think about some typical
products such as life insurance.
Regulations will be a barrier for startups looking to disrupt the industry. The culture of the
insurance business is notoriously risk averse, at odds with the agile and disruptive
methods of startups.
On the other hand, companies must remain vigilant to ensure that data collected to
determine insurance policies doesn’t discriminate against certain groups, and also
maintain the privacy of users.
Future of Insurtech
In recent years the innovative use of technology has begun to revolutionize the
insurance industry. Every aspect of the insurance business — from sales and
marketing to underwriting to claims administration — has been reconsidered and
innovated through novel uses of technology, referred to broadly as insurtech. Initially,
such innovation was spearheaded by startups, but soon incumbent industry players
began forming partnerships with or acquiring insurtech startups in addition to
fostering innovation within their own organizations. 

Insurtech innovation has primarily sought to simplify the consumer experience and
help policyholders adapt to an increasingly digital world. Innovation, however, has
been constrained by some existing state insurance laws and regulations, which in
many cases were enacted to regulate the sale and administration of insurance
products prior to the advent of computers, smartphones and other modern
communication devices. 

With the ongoing COVID-19 pandemic, insurance regulators have had to allow
practices and changes to the way business of insurance is conducted to facilitate the
buying, selling and administration of insurance where lockdowns and other
restrictions have made it impossible to conduct business as usual. Looking ahead,
insurance regulators should be more willing to allow greater technological innovation
and usage in the insurance industry because many technologies have been
permitted and successfully used during the pandemic.

Fostering innovation

Over the past several years, state insurance regulators had already given increased
consideration to legal and regulatory changes that would foster innovation in
insurance. The Innovation and Technology (EX) Task Force of the National
Association of Insurance Commissioners and various NAIC working groups have
been looking at potential changes to existing laws to facilitate innovation while still
protecting policyholders and the insurance marketplace. Regulators have weighed
enactment of new laws or changes to current ones against the ability of the existing
regulatory framework to accommodate new products and processes, such as
allowing delivery of various policyholder documents and notices electronically,
easing of anti-rebating and inducements laws, and allowing use of predictive models,
artificial intelligence and accelerated underwriting. 

The coronavirus pandemic, however, has caused increased urgency for legal and
regulatory changes given COVID-19’s transformative effects on social and business
interactions. Although insurance has been deemed to be an essential service in the
states and has been exempt from the strictest restrictions, the customers of the
insurance industry have by and large been restricted from in-person interactions. As
a result, the use of innovative ways to underwrite and administer claims, such as
through use of drones to assess damage, has become essential across commercial
and consumer insurance.

For their part, state insurance regulators have undertaken numerous emergency
actions to facilitate the transaction of insurance business remotely. Numerous states
have allowed and encouraged insurers to use electronic communications with
policyholders during the period of emergency lockdown measures. Some states are
allowing electronic delivery of policyholder notices and communications otherwise
required to be sent through regular mail in hardcopy. And with restrictions on
physical contact, states have pushed for the use of remote and online technologies
for the investigation and adjustment of claims. 

From the perspective of the insurance business, the pandemic has made even
clearer the need for the entire industry to adopt major technological innovation and
change into every aspect of how insurance is transacted. The lesson for incumbents
will be that insurtech must filter through all aspects of their operations and business
models, and can no longer be relegated to the fringes. Further, after having had to
adapt to remote working essentially overnight, all insurers and insurance producers,
large and small, are now evaluating the extent to which remote working can be
maintained permanently — not least for cost efficiencies. For example, Nationwide
Mutual Insurance Co. announced that it intends to shift all but four corporate
campuses and a few other offices to a work-from-home operating model. Statutory
and regulatory changes will be important to facilitate a transition to broad-based
remote working by the insurance industry.

Additionally, buyers of insurance stand to benefit from and will likely want to see
continue the trend towards a greater integration of insurtech into the business of
insurance. Younger consumers have long expressed a desire for greater adoption of
the innovation which is now being accelerated by social-distancing and other
limitations arising out of the pandemic; now older consumers are likewise adapting
rapidly to online and tech-based services. For commercial buyers of insurance, a
shift by the insurance industry to greater adoption of innovation and technology
should be a welcome change as well. Although until now the uses of insurtech have
focused more on the consumer and small- and medium-sized enterprises segments
of the insurance market, the uptake of insurtech innovations is likely to expand to
cover all aspects of the commercial market going forward. 

Removing roadblocks
With the duty of insurance regulators to protect and foster a robust insurance
marketplace and insurance offerings for insurance buyers, it is more important than
ever to facilitate insurtech innovation to allow for a wide array of insurance products
in the marketplace and proper administration of those despite the restrictions on in-
person and other traditional ways of doing insurance, as the restrictions or
preferences resulting from the pandemic may stay for a long time. As a result,
insurance regulators will be challenged to speed up a review of and make changes
to existing regulations that might hinder innovation and adaption to a world of
remote, online transaction of insurance business. In addition to changes to
regulations, there will indeed need to be statutory changes, as some of the
requirements referred to above are hardcoded in the insurance codes of the states. 

Collectively, the pandemic and the resulting social and business changes have the
potential to accelerate the adoption of insurtech innovations and lead to long-sought
legal and regulatory changes. The merits of many of the positions of insurtech
proponents over the past several years about the need to update many of the
insurance laws and regulations that no longer serve their purpose in our world where
most insurance transactions increasingly take place online and remotely have
become clearer. The case for making the much-needed updates to the states’
insurance laws and regulations to facilitate innovation will remain strong into the
future based on lessons learned during the pandemic.
An InsurTech revolution is underway in India
The Insurance sector in India is expected to grow to US$ 150B by 2023. One of the
factors boosting this growth is the increasing customer reach and growing customer
sophistication on service levels which is creating a new wave of InsurTech
companies changing how Insurance is sold and serviced. The internet-first Insurance
platforms are receiving positive customer feedback because of the quick service they
provide, coupled with the convenience to access Insurances on mobile, as compared
to interaction with the agents.
The Insurance sector in India is now witnessing a rise in the number of players
innovating with technology through differentiated offerings and business models.
New distribution platforms and aggregators touching multiple products in Insurance
have emerged. Incumbent insurers are also not behind and are making rapid strides
in adopting technology in customer acquisition, policy issuance, claim submission
and processing and other areas of customer support.

How is technology transforming the

Insurance industry in India?
Initially, InsurTech started with online platforms for discovery. Now, most digital
population goes online to discover, compare and purchase insurance products. This
trend is more pronounced in relatively simpler products like Motor Insurance, but
even relatively complex ones like Health Insurance also have a strong digital
influence making it more convenient for the customers.
For consumers:
 A gradual shift from ‘Push’ to ‘Pull’: Consumers in the metros and tier 1
cities are becoming habitual buyers of Insurance and are getting comfortable in
buying Insurance without much assistance. Consumers are actively learning how
to compare and buy Insurance products on e-platforms and tightening compliance
about buying motor Insurance is bringing more consumers under the Insurance
umbrella
 Growing consumer expectations being addressed through digital:
Customers now expect on-tap service and a seamless experience from purchase
to claims to renewal. It is an estimate that the number of internet users in India will
be 800M by 2023 and most of them will be connected via their smartphones. As
insurers are becoming more digital and getting closer to the point of sales in the
offline world, penetration of Insurance is set to increase
 Growing ‘preservation mindset’: Consumers are increasingly getting more
conscious of preserving and extending the life of their assets, be it their home,
expensive phones, automobiles, and consumer appliances
For insurance providers:
 Lower cost of distribution and servicing: Insurers are leveraging
technology to assess the condition of the underlying asset, enable the raising of
claims, do a remote inspection for minor injuries or damages and deliver a
seamless customer experience. Most of these services were dependent on
agents, field team or third party agencies earlier and needed extensive
coordination at the insurer’s end driving costs up. InsurTech startups are
processing millions of customer conversations to create Artificial Intelligence and
Natural Language Processing powered Chatbots that are fast being deployed on
front lines of support. These Chatbots can auto-respond to claim related queries,
 FAQs, can help in product discovery and are designed to be easily integrated on
the website via APIs. Even offline agents and brokers are being enabled digitally
 New Innovative Products: Seamless connectivity and micro-payments are
enabling new Insurance use cases. For example, InsurTech players have started
to give the option to commuters to insure their rides on a cab to cover loss of
property and damage aligned to changing commuting trends in India. Also, the
sachet approach followed by health insurers to offer Insurance cover for specific
instances such as seasonal diseases like Dengue has allowed some tech-players
to sell Insurance through tie-ups with traditional Insurance firms. Even incumbent
insurers are offering bite-sized per-day and per-week Insurance for domestic
travel trips
 Superior underwriting: From leveraging telematics to social score in
underwriting, new age InsurTech companies are preparing to provide customized
and economical Insurance products. Other countries have started tracking driver
performance, are tracking wellness through fitness trackers, coming up with Pay-
As-You-Drive Insurance based on an individual’s driving habits to name a few.
These companies collect various data points from driver behavior, health,
performance, geo-location for Motor Insurance or a person’s social media
behavior, connections, affiliates to underwrite the risk more accurately for the
insured individual
Top Insurtech Startups In India

1. Digit Insurance

Digit is an internet-first general insurance startup company launched in

the year 2016. It covers insurance for cars, mobile phones, travel, bikes,
jewelry, and health. Headquartered in Bangalore, it has bagged total
funding of $100 Million from the time of its inception.

2.  Acko General Insurance

Founded in 2017, Acko is an auto-insurance startup disrupting the

industry with its innovative technology. Its InsurTech solutions include
low-cost insurance products fueled by high-level data analytics.

Acko provides complete and third-party insurance for cars and bikes. It
also has a tie-up with Ola Cabs for micro-insurance services. Operating
from Mumbai, Acko has reported total funding of $43 Million till 2019.

3.  PolicyBazaar

One of the early startups in the InsurTech sector, Policy Bazaar was
founded in 2008. It is an online marketplace for insurance policies.

PolicyBazaar compares different insurance policies based on price,

quality, and benefits. Operating from Gurgaon, the company has raised
a total of $372 Million of funding from different investors.
4.  OneAssist

Starting in 2015, OneAssist has emerged as a leading aggregator of

insurance products. It provides insurance for data protection and
appliances.

Much needed in the era of the internet, this start-up solves the new-age
problem of identity loss, dark web, and cyber-risks & attacks. OneAssist
operates from Mumbai and has reported total funding of $32 Million.

5.  PolicyBoss

PolicyBoss is yet another online marketplace for different insurance

policies. It lets customers compare and buy policies on their
application.

Founded in 2012, PolicyBoss has gained total funding of $10 Million.

PolicyBoss believes that insurance brokerage as a key distribution
channel. It carries its main operations in Mumbai and has physical
offices in 24 cities in India.

6.  InsureFirst

Incubated in Kolkata in 2016, InsurFirst has partnered with Aviva Life,

ICICI Prudential and SBI to distribute its products.

Currently, it is providing health, motor, life insurance, home & assets,

travel, and investment policies to individual customers.
At the corporate level, it is covering marine, fire, business interruption,
commercial vehicle, contractor risk, workmen compensation, and trade
credit risks.

7. CoverFox

Set-up in 2011, CoverFox is one of the leading insurance startups of

India. It provides a simple, fast, and secure platform for customers to
buy and renew insurance policies.

It also provides a reliable platform for claim settlements. It has been

able to acquire total funding of $42 Million to date.

Also, the company is backed by some of the insurance giants like Saif
Partners, IFC, Catamaran, Accel Partners, and TransAmerica.

8. PayTM Insurance

PayTM originally started its service as a digital wallet in the year 2010. In
2018, it declared its venture into the insurance sector as Paytm Life
Insurance Ltd and Paytm General Insurance Ltd.

9.  RenewBuy

RenewBuy is an online brokerage platform for motor insurance. It

provides real-time quotes from different insurers.

The company was founded in 2014 and handles its majority of

operations from Gurgaon. It has total funding of $15 Million to date.
10. TurtleMint

Founded in 2015, TurtleMint is an online aggregator of insurance

products and policies. It has headquarters in Mumbai. Currently, it is
serving life, health, bike and car insurance sectors.

Conclusions
The world around us is changing and emphasizing the role of technology in
addressing a lot of the challenges that we face. The insurance sector needs applied
technologies to develop the services and to improve customer experience. Tech
decisions are also important in terms of financial health and growth. Look closer at
InsurTech’s meaning in the modern business models to bring innovation to the
insurance industry.

Do you want to bring your insurance company to a new level? Then, InsurTech tools
are what you need.

References
1. www.meetbreeze.com

2. www.thebalancesmb.com

3. 4tifier.com

4. www.arrkgroup.com

5. www.businessinsurance.com

6. Youtube

7. www.investopedia.com

8. www.dailyhostnews.com

9. Thingsinindia.in
Contants