As a key component of the global financial industry, insurance was never going to lag behind when it came to technological innovation. Now finally catching up with banking and investment fintech, the UK Actuarial Association report that investment in insurtech reached $6.37bn last year, representing a third of all money spent on fintech innovation. Consumers are now looking to this pattern of investment and asking how products will evolve as a result.
Adapting tech for flexible workers
An area in which insurance tech has had to move rapidly is flexible employment. Millions of American workers now work remotely for at least one day a week, and Forbes have highlighted the risks associated with this and the potential non-compliance of employees with insurance-critical policies. According to industry insider Cerity Insurance, new fintech led insurance packages will help to create compliance in this sector by tailoring compensation levels and premiums to the exacting nature of remote work, including the technological benefits it brings.
An era of convenience and trust
The movement of liability away from offices and the wording of insurance policies, shifting to individuals and their ability to self-report details important to a policy, has created a new era of convenience in the placement of those policies. A great example of this is in Europe, where German firm Getsafe have pioneered self-reporting insurance via their platform. Now launching in other countries across Europe, it promises to help bring insurance across both home and contents with less fuss than current solutions and with greater ease of access. This also signals a greater level of trust in the two way internship between insurer and insured person.
A robotic future?
Entrepreneur mag have suggested that robotic processes in insurance will soon change the face of the industry. Noting the use of robotic power to overtake transactional work and underlying processes, the idea is that overheads will be cut and convenience expanded, providing a further boon to consumers. In the long-term, these changes may power larger changes in the wider insurance process, creating a system that works quickly and efficiently to the benefit of the consumer.
Insurtech is the next big thing in the fintech arena, and new funding shows the incredible level of interest in making it a success. To do so will require the creation of customer-focused products, and all indications point to this being the case. As robotic power starts to move into the industry, expect a super streamlined and pro-consumer system to take hold.