Insurtech and the Digital Transformation in the Insurance Industry

Insurance has remained fundamentally unchanged for centuries. It has been described as one of the least trusted industry sectors with the lowest level of user satisfaction. Accordingly, to Daniel Schreiber, Lemonade CEO, the cause of this consumer unfriendliness is in the traditional structure of insurance: every dollar insurance company pays for their customers is directly taken away from their profits, which makes insurance company’s interest directly contrary to its customer’s interest.

Insurance Technology (InsurTech) pioneers are working towards an ecosystem in which insurance could be sold entirely online without using any insurance brokers, AI is able to calculate insurance policy rates without human error, customers are able to get insured within seconds and claims paid in minutes. If this was to be achieved profits generated from unpaid claims previously directed to the insurance company, could now be paid to the customer’s chosen common good.

Practical examples can already be found in the market that mirror the core functions of digital finance platforms. User onboarding, data collection, integrated payments and decision making are being utilised by such InsurTech incumbents as Snapsheet, who recently closed series C funding to further expand their offering. Snapsheet helps to give transparency to the automotive insurance claims process and also simplify the payment process between all parties involved.

The insurance industry is claimed to be more complex when compared to financial services, regardless if the statement is true we can begin to see parallels emerging.

Originally published at news.crowdvalley.com. You can read the full story here: http://news.crowdvalley.com/news/digital-transformation-in-the-insurance-industry