The insurance industry is undergoing major changes. New risks, like growing natural disaster severity, are changing the insurance landscape, while insurance providers are also under pressure to provide fast claims payouts and optimal customer experiences. Insurtech is helping insurance businesses to offer new and innovative products, streamline operations, and stay competitive, even in the face of such challenges. While insurtech has been present in the industry for years, we’re likely to see the increased use of insurtech solutions in 2024.
Insurtech refers to using technology in the insurance industry. Insurance companies are using this technology to automate insurance services and to offer innovative products.
Many smaller startups are embracing insurtech and using the technology to compete against larger companies. With insurtech, companies can create special policies and products that fill gaps. By using technology in new and creative ways, insurance companies can also offer policies at lower prices, saving you money.
As technology continues to evolve, insurance companies have access to more tools in 2024 than in previous years. We’re likely to see companies use several insurtech insurance solutions in 2024.
Artificial intelligence (AI) can help automate everything from claims processing to insurance fraud detection. It will also play a role in customer service, including automated chats and email responses. Perhaps most importantly, AI can quickly analyze data. Insurance companies use data to assess the risk of insuring individuals. With the enhanced analysis that AI makes possible, companies can offer more customized pricing and insurance coverage to individuals. In other words, AI could save you money on your insurance.
Insurance companies are also using telematics to provide customers with personalized pricing. Telematics, which can be apps or plug-in devices, monitor vehicles and your driving habits. When enabled, telematics can track your braking, speed, acceleration, and more.
Since insurance companies can use telematics to identify risky driving behavior, like hard braking, they can customize rates to individual drivers. If a company recognizes that you’re displaying high-risk behaviors when driving, your insurance premiums will increase to make up for that extra risk. But if you display safe driving habits, you may be rewarded with discounted rates.
Some insurance companies are also using telematics to track the amount of time you spend on the road, rewarding drivers who put low miles on their vehicles (and who minimize their risk by driving less) with lower insurance premiums or low mileage discounts.
Most insurance companies are embracing mobile apps and are using these apps to deliver perks to customers. Some companies allow you to file claims using an app, and you can even submit photos and videos with your claim. Many apps include the ability to call for roadside assistance, and most allow you to monitor your claim status and make payments.
As the insurance industry continues to evolve, insurtech will also lead to new changes. Personalized (and potentially reduced) insurance rates and policies, faster claims processes, and enhanced customer service are just a few of the potential impacts that we’ll see as more insurance companies embrace this innovative technology.
Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.
