How InsurTech Is Revolutionizing Insurance
It could be said that FinTech is very much an over-achiever. It has already revolutionized the banking world and could have chosen to rest on its laurels and watch as the new technology improves lives around the world. Instead, though, it is exploring where else the technology could be used and is now working to overhaul the insurance industry.
The vital need for this revamp is the same as the need for the original FinTech wave. New technology like blockchain, data analytics and apps have changed the business game—not to mention everyday life. As technology becomes more ingrained in our lives, we expect every aspect of our lives to feature it and the benefits that come with it. In order to survive, insurance (like finance) needed to adapt.
InsurTech funding rose dramatically between 2014 and 2015 (from $740 million to $2.7 billion) and has been steadily increasing since then, which is great news for startups that want to explore this area. Hundreds of startups have taken up the cause, offering new insurance services to people around the globe.
Of course, not all of these startups are aiming at directly challenging the insurance providers. Others are choosing to direct their efforts at improving the process by offering assistance in various ways.
Cyence, for example, works with insurers to assess their cyber risk, a vital need in the new technologically-enhanced era. Cyence uses analytics to examine a company’s data and determine the financial implications of cyber risk. Considering cyber risk is an element to which all modern insurance companies need to pay attention and take caution, this startup is positioned to fill a vital area.
Embroker offers a management system that allows businesses to safely explore and store insurance policies, easily enabling them to research and analyze their options. According to the CEO, Matt Miller, the Embroker system was designed to increase transparency in the insurance industry. The company aims to reduce the stress and paperwork usually associated with insurance policies and offers its platform to users at no cost.
Simple Disability Insurance is a new platform designed to simplify the disability insurance application process, helping the millions of Americans who currently don’t have disability coverage. The startup has dramatically simplified the application process, reducing the sales process from six months to 10 minutes. Considering that this is a $61 billion market, an application that improves the process will be very well received.
This overall revamp of the insurance industry, changing who our providers are as well as how they offer their services, is long since overdue and will greatly improve the lives of billions across the globe. First FinTech, now InsurTech…we just have to wait and see what comes next.