Insurtech—short for “insurance technology”—is a broad category of constantly changing technologies used in the insurance industry. Any technology that’s used by an insurance company to increase the efficiency of its operations could be considered insurtech.
The Rise of Innovation
Insurance giants have long hoped to bring more innovation into their business, but strict regulations and long-standing processes have hindered their progress. This trend has slowly started to change as more investments in technology continue to increase. According to CB Insights, “more than $4.15B was deployed into insurance tech startups globally” with that number continuing to rise. But with so many startups continuously popping up, how can we differentiate from those that are fads and those that are worth our time?
Looking to the future
Insurance isn’t the first industry to feel the effects of disruptive technology, and it won’t be the last. However, it is an industry with a high number of large, legacy businesses that are in danger of being disrupted into the history books by a wave of agile, sophisticated, hungry insurtechs. Digital transformation has the ability to streamline processes, expand capabilities, and ensure that companies’ offerings are tailored to the needs of the consumer. It’s time for the whole industry to take a look at the sector-wide transformation all around them and decide whether to be the disruptors or the disrupted.