InsurTechs — the new fuel for insurance industry!
It is only in the recent times that people don’t raise eyebrows if you use the words “insurance” and “exciting” in the same sentence. Thanks to the clever use of technology and data science by the insurance industry to solve real-life problems for instilling zing to the business. The conference I was speaking at last week, more precisely, 3rd Asia Conference on Big Data and Analytics for Insurance organized by Asia Insurance Review further strengthened the belief that insurance business is getting thrilling each day.
The conference was being organized for the third time in Singapore and the success of it can be gauged from the participation of high profile speakers and delegates representing leading (re)insurance and technology companies from over a dozen of countries across the globe including that from Europe and Africa. I was fortunate to moderate a panel discussion titled, “Being a Hybrid — An Actuary & Data Scientist” involving four power-packed panelists; all actuaries who decided to become data scientists! The fact that after going through rigorous process, spanning over several years, of becoming an actuary they decided to embrace Data Science and technology speaks a lot about the role technology would play in the insurance business.
There were many takeaways from the conference. Some of them that have lasting impressions on my mind include:
· Data is the new gold!
· Data Science and Technology would play integral role in shaping the insurance industry
· InsurTechs are contributing to all the steps of the insurance value chain including product development
· InsurTechs are complementary to the insurance industry. Both the (re)insurance companies and the InsurTechs are working hand-in hand towards better customer experience
· Deep Learning, Artificial Intelligence and Blockchain would change the way insurance business is run
In the recent few years, the insurance industry has embraced technology and has invested in Data Science. A few of them have managed to deploy solutions that go a long way in solving the challenges faced at various steps in the value chain. There are companies that pay motor claims based on the image of the damaged car and then there are companies that underwrite based on the selfies clicked by the prospective life insureds. Telematics, a few years ago was synonymous with insurance premium discounts for cautious car drivers but now could mean anything from better deals to healthy lives to sending alert to hospitals before the heart attack. The Smart contracts are expected to squeeze the claim settlement time drastically all because of Blockchain and a chatbot could help you decide the appropriate insurance product for you!
While most technology solutions are bringing efficiency to the insurance value chain, fidentiaX is adding an additional concrete step to it. That is, trading of the policies when you no longer need it. The InsurTech is on track to create a marketplace for tradable insurance policies. The history of selling of life insurance policies goes back in the 1980s, however, due to lack of awareness and the huge barrier to carry out the transaction efficiently, it never became popular. fidentiaX solves a real-life problem of helping policyholders unlock higher value for their insurance policies when they are unable to continue paying the premium either due to financial distress or their medical condition. The use of Blockchain technology makes the entire process seamless. This is a fairly untapped market, solves a social problem and yet offer competitive returns to the investors. A terrific combination for any business to fly high!
About the author
Sumit Ramani is Chief Actuary at fidentiaX. He is an Information and Communication Technology engineer and a Life Insurance Actuary from IFoA, UK with over a decade of experience in (re)insurance industry. He is thrilled by the vision of fidentiaX and believes that the project offers a lot of excitement and is the ideal platform for his technical and insurance expertise.