Insurtech refers to the use of technology in insurance noted by Bahaa Abdul Hussein. The use of insurtech has revolutionized insurance. It is important to understand how customers are adopting insurtech. It would be interesting to know this based on different demographics.
Insurtech and its uses
Insurtech has become a buzzword in the world of insurance. By using technology, insurance industry has managed to innovate in a big way, savings costs and enhancing efficiency. Insurtech offers win-win for both insurers and customers. The benefits it offers explains why both insurers and customers are adopting to insurtech.
- The biggest benefit of insurtech is on customer experience. Technology makes it easy for customers to buy insurance products. They don’t have to wait for an agent to cater to their needs. They can use the website or app to do it themselves and get personalized products meeting their specific needs. This enhances customer experience creating loyal customers.
- Insurers can get higher revenues and improve their profitability by using Insurtech. Customers are adopting insurtech in a big way and this is proving to benefit the bottomline.
- Using insurtech helps insurers work in a more efficient way. People need not do routine work, which can be done by automation. There are savings on human effort, time, and costs.
- Insurtech is flexible in approach as compared to the rigidity of traditional insurance. Customers can get flexible products tailored to their needs at customized prices. The individualized approach is what had helped customers adopt to insurtech quickly.
- Fraud is a major concern for insurers. Insurtech uses AI as one of its component, and can help in detecting fraud, thus saving money.
Customer adoption of insurtech
Customers have adopted to insurtech fast because of its benefits. Traditional insurance is complicated and involves many procedures. Customers have to depend on insurance executives or agents. Process of getting insurance as well as claims is complex and time-consuming. With insurtech, they can do it themselves from their home using an app or a website. The convenience offers is what has increased adoption of Insurtech.
Insurtech demographics
Demographics of customers can be organised based on gender, race, income, family life stage, and other factor. Some studies have been carried out to analyze demographic data related to insurance and insurance adoption. Some highlights from the study include:
- Male customers are more likely to go for early adoption than female customers.
- Younger customers, especially working executives adopt insurtech quickly as compared to older customers.
- Customers who indicate that they are internet savvy have a great level of adoption of insurtech as compared to other customers.
- Urban customers are quicker to adopt insurtech than rural customers.
The article has been written by Bahaa Abdul Hussein and has been published by the editorial board of www.fintekdiary.com.
