Insurance technology is not a new idea. However, current insurers have recently realised that they need to adopt new technologies to compete with fintech companies and provide their clients with the best services ever.
In fact, insurtech Australia has already transformed the industry, and it is expected to expand globally in the coming years. According to reports, the number of insurtech companies in Australia increased by 53 per cent in 2019.
Here are the seven most attractive insurtech services you can benefit from.
1) Crowdsourced Claims
One of the problems insurance companies have to deal with is false or exaggerated claims. According to some studies, fraudulent activities cost insurers over $80 billion per year. As a result, insurance companies have to increase their policy premiums every year to cover the costs of these fraudulent claims.
Crowdsourced claims are innovative insurtech ideas that could solve this problem. It’s an app-based service that allows insurance customers to rate their experience with a particular company. This way, customers could quickly identify outstanding and problematic insurers and avoid them in the future.
2) Digital Insurance Brokers
As per reports, over 800 fintech companies are based in all Australian State and Territory capitals.
Traditional insurance brokers tend to charge expensive fees for their services. As a result, many customers prefer online insurance comparison websites instead.
However, if you are looking for an insurer who provides specific products or services, you might not be able to find an appropriate insurer using comparison websites.
Digital insurance brokers don’t charge customers for their services and provide them with a wide range of products and policies they can choose from. They also help clients save time by comparing multiple insurers in just a few minutes.
3) Decentralised Insurance Platforms
Decentralised insurance platforms use smart contracts to decentralise buying and selling insurance policies.
The platform brings together insurers, brokers, reinsurers and customers in one place. It allows them to exchange information much faster than using traditional channels.
Currently, these insurance platforms have a significant drawback – they allow only small-scale operations. In the future, blockchain developers plan to solve this problem and create scalable decentralised insurance platforms that will enable them to compete with large insurers.
4) Robo Insurance Agents
The insurtech industry comes up with new ideas daily. One of the most innovative insurtech services is robo insurance agents. These are chatbots that provide their customers with a wide range of services.
For example, you can ask your robo agent to purchase a new insurance policy for you, renew an old one or change some details about it. If a cheaper product or service is available on the market, robo agents will find it.
5) Business Insurance Brokers
According to reports, Millennials and Generation Z members prefer new technologies and don’t want to work with traditional insurance brokers. As a result, companies need to transform their customer services and offer innovative financial products.
Instead of working with old-fashioned insurance brokers, businesses can connect with business insurance brokers who will help them choose the best possible product and service according to their needs.
Insurance as a Service (IaaS) is a new model that provides businesses with access to insurance products and services through cloud solutions. IaaS providers allow companies to subscribe to their services every month. Businesses only pay for the services they use and can cancel their subscription at any time.
The significant benefit of IaaS is that companies don’t need to spend a lot of funds on buying and maintaining traditional insurance products, as the service provider takes care of it. Most importantly, these solutions are offered on an as-needed basis; companies only pay for the services they use.
7) Share Insurance Policies
For a long time, parents were the only ones who could take out an insurance policy on their children’s lives. However, this is no longer the case. Nowadays, sharing insurance policies with other family members or friends is possible. This way, even if one of you dies prematurely, the rest of the group will access the insurance payout.
Many companies offer shared insurance policies, including critical illness coverage and accidental death & dismemberment plans. These products provide customers with a chance to share their insurance policies and take advantage of group rates.
If you are looking for new ways to protect your family, business or assets, consider purchasing digital insurance products that will help you find the best solution. You can benefit from insurtech in Australia even if you don’t have any tech-related skills. They aim to make the insurance industry more transparent and user-friendly for everyone.
With so many new insurtech ideas popping up continuously, it seems that insurance providers will have to innovate to maintain their current client base. If you want your company to stand out from the crowd, you should consider joining this creative movement and providing your customers with more efficient products and services.