Fintech is the future of every business and every sector that exists within any entrepreneurial domain. That’s right, its indeed a bold proclamation but this is what the stats are saying, backed up by the strong testimonials of top-class business analysts. Coming right to the point, here we have managed to talk about the impacts of Fintech on the insurance sector and how it has managed to elevate, once a doubted domain to a sector which is now producing profitable offshoots, one such example is InsurTech.
There was once a time, not long ago, that insurance sector faced many challenges. Even there are challenges being faced by the mentioned sector now, but have lowered down significantly due to Fintech. We will get to that soon but let’s mention the problems first. According to a financial report of UK, the insurance sector was confronted with the challenges and issues with banking system on the following fronts:
This, and a lot more yet to be mentioned, is part of insurance system due to which it’s trading points are falling down the graph in whatever market you observe. Here, jumps in the technology to save this drowning sector. First of all, technology promised to empower the insurance companies by enabling them to reach out to consumers with low incomes. Technology and data science merged together with insurance and provided scientific algorithms like data analytics, psychometric testing and biometric identification. Apart from this, the insurance companies are encouraged to develop their smart phone application for android, iOS, Linux and Windows platforms because now, the insurance plan and its specificities will be monitored by the insured person.
Fintech is encouraging the insurance sector to come up with new and innovative ideas to develop personalized insurance products which can be offered to the insured customers to engage them in improving your company’s standards. The benefits of using Big Data Analytics are being dawned upon the insurance companies in a way that they can easily judge by the insurance plan, the buying nature and inclination of a client’s mood towards certain products. In other words, it improves targeted marketing.
This whole decorum, laid the basis of what we today call as InsurTech. Interested in getting to know more about it further? Read out in our latest white paper about top sectors in Fintech.