Whether you’re a startup or a large-scale business, making changes to meet current customer demands is necessary for keeping up with the fast-paced world.
Changes within your industry and new technologies that become available can cause challenges in finding ways to add additional value to your service. Sometimes, existing systems may be outdated and become cumbersome, preventing you from staying competitive and meeting customer needs.
One of the most disruptive technologies emerging today is insurance technology or ‘Insurtech.’ The combination of ‘Insurance’ and ‘Technology’ is revolutionizing the industry for businesses large and small. According to reports, the global insurance technology market revenue was $ 5.48 billion in 2019.
In this blog post, you will explore five ways Insurance technology can help your business grow by leveraging this new wave of tech.
1Streamline Coverage Process and Save Time
Insurance technology can provide small businesses with a new way to scale their onboarding process without the need for additional staff or an in-house IT team.
Most insurance technology platforms offer a simple turnkey process for setting up your business profile. Within the first steps, you’ll provide basic information about your business to ensure you are compliant with any potential insurance needs. After completing this simple step, an insurance technology company’s intelligent algorithm will work behind the scenes to look at other factors involving your business and competitors within your industry.
Once the appropriate options have been found, the platform will present you with quotes that include all available coverages. You’ll be able to choose your desired possibilities after reviewing each section for accuracy and transparency.
Once the choices are made, the algorithm will go back to work, finding competitive rates within the insurance technology company’s network of insurance providers. The process should take no longer than a few minutes, allowing you to get back to focusing on building your business quickly.
2Provide a Better Customer Experience
Insurance technology companies offer a wide range of services, including accepting payouts online and managing claims via phone or email.
Often, insurance technology providers have direct relationships with insurance providers, allowing them to expedite the claim process for you. These services are beneficial when you’re dealing with a time-sensitive situation.
3Minimize Risks of Fraudulent Claims
Fraud costs insurance firms billions of dollars each year.
Insurance technology companies employ innovative technology to help minimize the risks associated with fraudulent claims by using their proprietary algorithms.
By using AI and machine learning to assess the risks of certain factors such as location, age, personal information, and more, an insurance technology company can stop fraudulent claims before they happen.
4Improve Claims Management
Insurance technology companies frequently invest in building a team of experts on every type of insurance policy to handle claims and negotiate for lower premiums with insurance providers.
Instead of hiring a team of experts to handle each claim individually, many insurance technology companies include additional services, such as processing the claims and negotiating rates within their platform.
It reduces costs for consumers who may need to contact numerous individuals or organizations before receiving any service or payout. It also saves time for business owners who need to focus on running their company.
5Provide a Low-Cost Option
Insurance technology companies often work with insurance providers and offer lower rates than the more giant, more expensive insurance corporations.
It is because Insurtech Solutions companies rely on technology, not third-party contracts with insurance carriers, to connect businesses with insurance providers.
Because of this low-cost option, many individuals and SMBs choose to partner with an insurance technology company instead of an expensive corporation.
6The Future of Insurance technology
Although insurance technology has only been in the U.S. for a couple of years, it is already being adopted by businesses nationwide. According to Deloitte’s 2018 survey, 37 percent of insurance executives are currently investing or planning to invest in an insurance technology company within two years.
As new companies enter the market, technology improves, and regulation eases, insurance technology solutions are becoming more popular among industry professionals.
7Tips to Select The Right Insurance Provider
It is ideal to work with an insurance technology business that guarantees its quotes. If an individual insurance provider quotes you a rate, the selection may come with additional fees or hidden costs of which you are not aware.
To be sure that you’re receiving competitive rates, ask for references if the company does not provide them. A good insurance technology company will want to prove its value and not leave doubts in your mind. Be sure that the insurance technology business you choose has a strong customer support team.
A professional insurance provider may offer more services, including additional coverage options and types of payment methods. Still, it can also have difficulty providing accurate information upfront or during the payment process.
Be sure to choose a company that provides transparent information and offers automated payments and claims processing.