The Next Step Disruption Technology In The InsurTech Industry
The InsurTech revolution is booming in the recent years. Only in 2018, three new Israeli unicorns have arisen the insurance industry. The digital transformation alongside the cultural changes in the consumer behavior and the way it used to purchase services has significantly influenced the insurance world. Costumers demand for a swift, frictionless digital service with no human interaction. Those alterations force the conservative insurance industry to adapt the fast-moving technology changes.
The upcoming revolution will accrue not only in the core product of the insurance industry rather in the entire procedures and aspects of the insurance companies. New products will be created, and the scope will change. No more annual payments, but usage-based insurance (UBI). The way we purchase insurance will change and will be fully digital, the underwriting will be AI based, risk assessment will be more accurate, and as a result policy prices will be more precise. Policy prices will adjust according to the insured personal data and will constantly update during the coverage period. Claims procedures will by fully digital and the need for human judgement in the process will narrow down.
These changes are major, but they are just one part of the process, to complete the whole picture, the industry should proactively predict the future claims and act to prevent them.