Insurtech is an emerging technology that aims to streamline the insurance process. Insurtech is a subset of fintech, which means it uses technology to transform the way financial services are delivered.
Insurtech companies are using technology to revolutionize the insurance industry by making it more accessible, convenient, and cost-effective. The goal of insurtech is to make insurance better for both customers and insurers.
Insurtech companies often use data analytics and mobile technology to help people compare their options and find the right coverage at a better price than traditional brokers have offered in the past.
The insurtech industry currently makes use of the following technologies:
Blockchain technology
If you’re unfamiliar with the term “blockchain,” it refers to a distributed database that keeps track of data in increasingly large blocks. Each block also has some data and a cryptographic hash pointer. These pointers are linked together in a chain. The blockchain provides transparency and security for transactions.
IoT (Internet of Things)
The Internet of Things (IoT) refers to a system in which everyday objects are equipped with software, electronics, actuators, and connectivity in order to gather and exchange data. The IoT connects everyday items to each other, allowing them to send and receive information over networks without human interaction.
AI (Artificial Intelligence)
AI is machine-based learning, where computers can learn tasks such as speech recognition, object identification, language translation, concept understanding, and decision-making. Artificial intelligence works using algorithms that mimic how humans think, learn, and make decisions.
VR (Virtual Reality)
VR is a simulation environment created using virtual reality devices, computer graphics, and interactive audio and visual feedback. A user wears a headset that displays images and sounds simulating the real world around them.
AR (Augmented Reality)
AR is a live view of a real-world environment supplemented by computer-generated sound, video, graphics, or GPS data. AR enhances the actual experience with additional content such as virtual objects or information overlaid onto the real-life scene before the eyes.
Insurtech is stymied by concerns over personal data security. For the purpose of keeping track of credit ratings, distributed ledger technology makes use of a central database that is shared among many different entities and locations. Its dynamic nature creates challenges for privacy regulations.
Multiple approaches to the administration of distributed ledger technology raise privacy concerns for authorities in different international jurisdictions.
Since distributed ledger technology is developed collaboratively, it may be decentralized, leaving no single entity responsible for resolving disagreements. Because of this, incorporating it entirely into insurtech is difficult.
The article has been published by the editorial board of the Fintek Diary. Happy Reading. For more information please visit www.fintekdiary.com
