What Is Insurtech?2 min read
Insurtech is a term that has been used to refer to the development of technology and applications that can help improve the customer experience and streamline the backend processes of an insurance company. The main goals of insurtech are to increase the reliability and security of an organization’s data and to reduce the chance of fraudulent activity.
Detecting fraud is critical for insurers. With a robust digital insurance platform, carriers can stay on top of trends and protect their business from scams.
A good fraud detection system can reduce loss and improve customer service. AI-powered systems also allow for full transparency. By providing a detailed timeline of events, AI can help companies determine if they should pursue a case.
The insurance industry has experienced a consistent rise in all types of fraud. In fact, a study by Accenture found that insurers can save up to $7 billion with AI-powered fraud detection over 18 months. But many insurance professionals still struggle with inadequate data.
To effectively fight fraud, insurers need to analyze more than the limited policyholder data available to them. Having diverse data sources improves the accuracy of their analytics.
Improves customer service
Insurtech has reshaped the P&C space in recent years. As a result, insurers need to rethink their customer service models. It is no longer enough to slingshot a policy through the postal system; customers want a more personalized experience.
With all of this in mind, insurtechs have developed technologies to streamline processes, boost revenue and nudge customers toward a lifelong insurance plan. Using artificial intelligence, these companies are able to identify key touch points and proactively engage as new needs arise. A good example of this is the Diya mobile app, which is touted as a digital guide to small business insurance. The app features real-time coaching for call center agents to boost performance. This enables insurers to deliver the best possible customer experience.
Encrypts customer data
Aetna recently joined the growing number of insurtech firms offering encryption solutions for customer data. The company has been partnered with AlertSec, a startup that is aiming to protect the customer’s information in the event of theft or loss. They are now working with over 300,000 brokers across the country. In addition to providing security for customer data, AlertSec Ensure also scans broker devices for encryption capability. Encryption is crucial in the financial industry because it protects against hackers, cyberattacks, and unauthorized access. As a result, most financial firms are implementing encryption for their client data.
Other companies, such as Kiteworks and Virtru, are also focusing on providing secure, end-to-end encryption solutions. These companies protect the data of their customers by offering a private content network and a variety of data privacy solutions.