If you’ve never heard the word “insurtech” before, you’re not alone! A portmanteau of “insurance” and “technology,” insurtech is a relatively new term used to describe companies who are transforming the insurance industry using new technologies and innovations that optimize cost savings and maximize efficiency for insurance providers and customers alike. As a prime example of an insurtech company, Olive is at the forefront of the changing face of the insurance industry. Here’s a little more about insurtech, how it works, and what it means for you.
An Intro to Insurtech
Up until recently, the insurance industry hadn’t changed much over the years. The basic model stayed relatively similar for decades, with providers charging their customers premiums for coverage based on a personal risk assessment determined by a number of factors. However, much like the way fintech has changed the face of the finance industry, insurtech has become a disruptive force in the way insurance companies are doing business with their customers. As with a number of other industries, insurance companies like gogetolive.com are implementing new technologies that utilize Big Data, artificial intelligence, and the Internet of Things, and paving the way for a more competitive insurance market.
How Does Insurtech Work?
In the year 2020, nearly all of us have mobile devices such as smartphones and wearable technology that we keep on us wherever we go. Because of this, we are now able to collect a larger amount of data than ever before! This data is collected and analyzed by companies looking to optimize our experiences and provide us with exactly what we need, when we need it.
While some of this data collection helps companies fine-tune their marketing strategies, the main objective is for them to be able to better anticipate their customers’ needs and predict what they can do to nimbly and efficiently meet and exceed our growing list of expectations for what we want out of a business. Across numerous industries- retail, food service, and banking, to name a few- using consumer data for predictive and prescriptive purposes is now the norm, and insurance is no exception. Thanks to these advances in technology, the days of filling out long, complicated insurance forms and purchasing a one-size-fits-all policy from an insurance agency are long gone. Consumers want convenience, accessibility, speed, and above all, customization when it comes to insurance, and insurtech makes it possible for even small startup agencies to be able to offer a broad range of tailor-made policies to give the customers the coverage they need rather than charging for costly policies loaded with unnecessary features.
By collecting and aggregating data for each individual customer using insurtech, insurance companies like Olive can quickly provide coverage via a mobile app, adding an additional layer of convenience to the customer experience. Additionally, since an insurtech company can use consumer data to offer appropriate insurance products at the right time, customers can qualify for discounts and deals based on their up-to-the-minute driver data, sent straight from their car itself, that can make for substantial cost savings compared to traditional insurance policies not driven by technology.
The Future of Insurtech
As with other industry-disrupting uses of technology, insurtech is changing the way consumers see insurance. Once upon a time, taking out an insurance policy was viewed as a necessary evil- a bill to be paid, no questions asked, in order to comply with the law. Today, insurtech companies like Olive empower consumers to take control of their insurance policies by customizing them to fit their specific budget, needs, and lifestyle. Whether a customer is in the market for renter’s insurance policy that is custom-made for a single person in a condo or an extended car warranty to help offset the costs of auto repair, insurtech companies like Olive can provide instant quotes that save customers time and money, adding an extra layer of convenience and a great deal of value to the chore of shopping for insurance.
As our global community continues to be impacted by advances in technology, we can look forward to further innovation from companies across virtually all industries, including insurance. The traditional insurance-purchasing methods have already become less and less desirable to consumers looking to quickly choose the policy that best fits their needs and can save them money each month. After all, if it only takes 90 seconds to receive a quote that lets you quickly comparison-shop, why continue paying a hefty premium for a policy loaded down with a bunch of coverage you may not need?
In this day and age, consumers have come to expect a level of sophisticated, real-time service that technology allows them to experience each day in a variety of interactions. From the coffee we order over our mobile app each morning to bank transfers we’re able to complete at the touch of a button on our smartphones, we have become accustomed to having our specific needs met instantly by companies that seem to know who we are and what we want from our experience. Why should insurance be any different?