With the rise of ‘Insurtech’ people assume that there is a rivalry between the brokers and the insurance technology that is changing how the industry works. As an insurance consultant and after more than 20 years in the insurance industry, I would argue that comparing a computer to a broker is like comparing apples to oranges. Technology in insurance has plenty of benefits, but there are certain situations only a broker can handle.
Understanding what constitutes Insurtech
Insurance is one of the oldest existing industries. Every long-standing sector evolves to remain relevant in the changing world. A common best-practice involves incorporating technology to advance a dated practice. Insurtech refers to the application of technology innovation to the insurance industry in order to create a more productive work environment, improve consumer experiences and save time.
How Insurtech benefits the insurance workplace
As explained on Hagaman Insurance Group’s website, “We utilize searching technology designed specifically to find you the best quotes available on life insurance. Simply fill out our quote form, and we will get you started. Every quote is accurate, unbiased, and provides you with an easy way to understand comparisons of the most competitively priced policies available to you.”
Industry tools and trends
Cloud-based technology has been improving many industries but seemed like a gray area for the insurance industry. In the midst of cyber-security mayhem – what information is safe for the cloud? The best solution for the enterprise seems like a combination of on-premise and cloud-based servers to benefit from the privacy of the first and the flexibility of the latter. As Triinu Murumäe predicts, “We can expect a significant increase in the use of technology that can be operated via hybrid cloud and on-premise, ensuring ultimate flexibility for customers and clients and strong adherence to the ever-changing government regulations within the insurance environment.”
As face to face interaction declines, it has become clear that consumers prefer digital channels to complete transactions. To accommodate customers, insurance agencies need to move towards simplified online interfaces to communicate and sell coverage in a way that appeals to them while still providing the information and service needed to be effective. A 2015 survey “found that 20-40% of physical activities in insurance will be transitioned to digital. Specifically, pre-purchase, purchase, servicing, renewals, claims handling and management, payments, and customer feedback and resolution will become digital first, followed by other functions later.” As a result, IT and technology integration becomes vital to the workspace landscape.
Change intimidates a lot of people. In reality, though, the evolution of the insurance industry should move towards a teamwork approach where industry professionals utilize technology to improve the lives of their customers and increase productivity.