The global insurtech market is valued at US$ 8.6 billion in 2023 and is projected to reach US$ 34.7 billion by the end of 2033.

The insurance industry, known for its traditional and conservative nature, is undergoing significant transformation with the emergence of insurtech. Insurtech refers to the use of innovative technologies, such as artificial intelligence (AI), data analytics, and automation, to upgrade and optimize various processes in the insurance value chain. This wave of technological innovation is empowering start-up companies to challenge incumbents and revolutionize the insurance market.

One of the key drivers of the insurtech market is changing consumer expectations. Today’s consumers demand seamless and convenient experiences and they expect the same from their insurance providers. Insurtech companies are using digital channels to offer online information, purchase policies, and manage claims, making insurance more accessible and convenient for customers.

The Internet of Things (IoT) is also driving the growth of the insurtech market. Connected devices such as wearables, telematics devices, and smart home devices, are generating vast amounts of data that can be used to assess risks, prevent losses, and offer personalized insurance solutions. Insurtech service providers are harnessing this data to create usage-based insurance, pay-as-you-go policies, and preventive insurance, resulting in more accurate pricing and customized coverage.

Key Takeaways from Market Study

· Sales of insurtech services are predicted to increase at a CAGR of 15% from 2023 to 2033.

· The United Kingdom is a prominent insurtech market in the European region due to the introduction of value-added customer services.

· With a high number of insurtech companies, Singapore leads the insurtech market in the Asia Pacific region.

· Key market players and start-ups are reshaping the insurance sector in the United States.

“Blockchain technology is effective in simplifying claim process, and enhancing trust and security in the insurance value chain,” says a Fact.MR analyst.

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Insurance agencies who aren’t leveraging the plethora of tools Salesforce provides, would do well to do so before such a downturn is in full swing. That way, your business is poised for success during what could prove a difficult time.

Out With the Old

Much of the software common in the insurance industry is outdated. While that software has myriad good elements, it lacks the automation capabilities of an all-in-one platform like Salesforce. Often, we see no reason to fix what isn’t broken. Because change can be difficult, we see little reason to do it.

But, as someone in the insurance industry, you understand — better than most — the value in an investment in the future. Preparation for devastating events out of your control is essential. Your whole industry is predicated on that concept. So, having a safety net in place ahead of such events is all but mandatory.

The Upgrade

While legacy software is far from “broken”, it rarely allows you to maximize the potential of the market during a time when every dollar counts. Moreover, you don’t know what you’re missing. When sales are harder to come by, it reveals the gaps in your methods. By then, it is too late.

Switching to Salesforce allows you to not only keep what you already have but also improve upon it. Automation is key. While many legacy software has such capabilities, it lacks centralization, which in turn precludes automation, the way Salesforce does.

A unified model, one that allows you to see all the relevant information in one easy-to-navigate place, maximizes resources, saving insurance providers time. And, as we all know, time is money.

Time is Money

It is no secret that there is high turnover in the insurance industry. With an ever-rotating cast of agents, renewing licensing to simply enable your team to do business can be laborious. Salesforce automation allows you to keep license status in sync, freeing your employees to focus on other operations that are more fruitful instead of getting bogged down with something that is just needed to even function. On a similar note, differing paperwork requirements between states can also cause snags that are better off left to automation.

Employing Salesforce to auto dial with Amazon Connect is another massive boon. When you allow Salesforce to shoulder the burden of some of the daily rigamarole of operations, you can begin to drill down into the ways you can generate more revenue, giving agents the gift of time. That gift of time allows them to focus on closing instead of dialing.

Since you’re in the business of selling policies, quotes are your bread and butter. Automating quotes allows you to pull agents into the process only when they are needed. If the customer has already gotten an email with a slew of options, they can deliberate at their own pace, improving user experience. Satisfied customers are more likely to renew.

With a quote in hand, a customer is ready to pull the trigger. Then agents step in to put the finishing touches on the process, allowing them to have a better chance of closing a deal with less time investment.

Turning the Dials

Since Salesforce allows you to track data down to the granular level, you can see how each agent is performing, and so can they. This gives you better insight into better ways to provide incentives to agents to close more deals, and, since sales agents earn commissions, motivates them to troubleshoot on their own accord.

Such visibility increases agents’ autonomy, reducing micromanaging and improving employee satisfaction. This allows them to understand when to intelligently follow-up with clients, which keeps the agency at the forefront of customers’ minds. Employee satisfaction is key during a recession. Keeping those employees that are driving your business forward on the payroll when times are tough, positions you to come out of the other side of any recession with minimal damage to your bottom line.

So, switching to Salesforce ticks all the boxes, dialing in every pillar good business practice. Centralized data and increased visibility saves time. Time saved makes agents more productive. Automation improves customers’ journeys. All together, Salesforce works synergistically with what you have and turns the benefits up to eleven by simply tweaking the dials a bit.

During the inevitable economic contraction, those tweaks can make a big difference.

Written by the experts at Accelerize 360

About Accelerize 360

We are a team of technology experts with more than 500 implementations to our credit. We work across clouds, advising clients on different aspects of the insurance industry. Our motto is to never stop learning, so we’re always pushing the boundaries of Salesforce. Contact us: https://www.accelerize360.com/contact

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Fintech is revolutionizing the insurance sector, providing more efficient and streamlined processes for insurers, agents, and policyholders alike. With the use of artificial intelligence, machine learning, blockchain technology, mobile applications, and other digital solutions, insurers can provide more personalized, efficient, and transparent services to their customers.

In this article, we will explore how fintech is transforming the insurance industry, its benefits, and the challenges that insurers face as they seek to embrace new technologies.

What is fintech?

Fintech is a term used to describe the intersection of finance and technology. It refers to using technology to improve and automate financial services, including banking, insurance, and investment management. Fintech can be seen as a disruptive force in the finance industry, providing innovative solutions that challenge traditional business models.

Fintech encompasses a wide range of products, services, and technologies. Some examples of fintech include:

1. 1. Mobile banking apps allow customers to check their balances, transfer money, and pay bills from their smartphones. They can even use it to check the best long-term care insurance before committing to a specific insurer.
   2. Digital payment platforms enable individuals and businesses to send and receive money electronically, such as PayPal or Venmo.
   3. Crowdfunding platforms allow entrepreneurs to raise funds for their projects from many investors.
   4. Robo-advisors provide investment advice and portfolio management services using algorithms and machine learning.
   5. Blockchain technology is used to securely store and share financial data and enable transactions without the need for intermediaries.

Fintech has become an increasingly important investment area for venture capitalists and financial institutions, with billions of dollars being invested in fintech startups each year. The growth of fintech has led to new business models and greater competition in the financial services industry, providing consumers with more choices and driving innovation in the sector.

Why the finance industry needs Fintech

Fintech applications have revolutionized the insurance industry, providing more efficient and streamlined processes for insurers, agents, and policyholders alike. It is important for industries in finance, like insurance, to adapt to new software and applications for several reasons:

1. Improving efficiency: New software and applications can automate and streamline many of the manual processes in the insurance industry, reducing administrative costs and allowing insurers to process policies and claims more quickly and accurately.
2. Enhancing customer experience: With new software and applications, insurers can offer policyholders more personalized services, providing a better customer experience. For example, insurers can use data analytics to understand the needs of their customers and offer policies tailored to their individual requirements.
3. Keeping up with the competition: The finance industry is constantly evolving, and insurers that do not adapt to new technologies risk falling behind their competitors. By adopting new software and applications, insurers can stay ahead of the curve and remain competitive in the marketplace.
4. Reducing risk: With new software and applications, insurers can more accurately assess risk, improving their underwriting processes and reducing the risk of fraud. This can help insurers to save money in the long run and provide more affordable policies to their customers.
5. Increasing revenue: New software and applications can create new revenue streams for insurers. For example, insurers can use data analytics to identify new market opportunities or offer new services, such as personalized risk assessments.

In summary, adapting to new software and applications is essential for insurers to remain competitive, improve efficiency, enhance customer experience, reduce risk, and increase revenue.

Fintech Applications

Here are some common fintech applications used by insurance companies:

1. Digital insurance platforms: These platforms provide an end-to-end digital solution for insurance, allowing policyholders to purchase, manage, and claim their policies entirely online. Digital platforms also offer insurers data insights and analytics, enabling them to personalize their offerings and improve their underwriting processes.
2. Artificial Intelligence (AI) and machine learning: AI and machine learning algorithms help insurers analyze large amounts of data quickly and accurately, allowing them to identify and assess risks more efficiently. This technology can also be used for fraud detection and claims processing, reducing the time and cost associated with these tasks.
3. Blockchain technology: Blockchain technology can be used to securely store and share policy and claims data, reducing the risk of fraud and improving transparency. Insurers can also use blockchain to automate claims processing, reducing administrative costs and improving customer service.
4. Mobile applications: Many insurers have developed mobile applications that allow policyholders to manage their policies, file claims, and communicate with their insurers from their smartphones. This technology can provide policyholders with real-time updates on their claims, reducing the time and effort required to resolve issues.
5. Telematics: Telematics technology uses sensors and other devices to track driver behavior, allowing insurers to more accurately assess risk and offer personalized policies. Telematics can also be used to monitor vehicle health, reducing the risk of breakdowns and accidents.

In summary

Overall, fintech applications are helping insurers to provide more personalized, efficient, and transparent services to their policyholders. These applications also enable insurers to reduce administrative costs, improve risk management, and create new revenue streams.

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Link: https://www.insurancebusinessmag.com/us/news/technology/global-insurtech-investment-plummets–report-435070.aspx?utm_source=pocket_saves

Source: https://www.insurancebusinessmag.com

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Developed with an innovative customer-centric approach, qic.online allows customers to buy their car, motorcycle, travel, home contents, boat & yacht, and personal accident policies in just 2 minutes, without any need to scan and submit paperwork, or to call or visit a QIC branch to complete the onboarding journey.

Available in both Arabic and English, the new insurance portal offers instant covers comparison, allowing customers to get complete information on policy types, in addition to product recommendation to help them better identify the right insurance covers that suit their driving, traveling, and living needs. The online portal also allows customers to compare policy prices and select their preferred payment plans, including paying their insurance premiums in monthly installments while enjoying enhanced security for payments made via debit and credit cards.

The portal’s engaging design and modern interface properly support all display types and devices, allowing both new and existing customers to experience a simplified and intuitive navigation during both the onboarding and renewal processes. Customers can also request instant assistance from QIC’s customer service at all stages of their onboarding journey via the ‘Ask us’ button and receive instant support from the QIC’s customer service team all weekdays and round the clock.

For existing QIC customers, the portal offers a dedicated page for insurance renewals in just a few clicks by only entering their QID or policy number, and without any need to type their details linked to the QIC database anew. qic.online also hosts other features allowing customers to have extra control on their insurance needs, including upgrading policies and online claims management.

Commenting on the new portal launch, Mr. Ahmed Al Jarboey, QIC’s Chief Operating Officer – Qatar operations, said: “We are happy to launch the first and fastest all-inclusive insurance portal in Qatar, and to become the only insurance company in the country that allows customers to buy insurance policies in just 2 minutes. qic.online is revolutionary at all levels, and it is certainly another significant step in our journey towards the full digitization of all our insurance products and services. We have achieved record levels of customers’ reliance on digital channels over the past few months thanks to our relentless investments in developing our digital capabilities in line with our digital transformation strategy, and I have no doubt that qic.online will now be the one-stop shop that will allow further segments of our customers to be in control of all their insurance needs the way the like and in just a few clicks.”

Qatar Insurance Company is a publicly listed composite insurer with a consistent performance history of over 57 years and a global underwriting footprint. Founded in 1964, QIC was the first domestic insurance company in the State of Qatar. Today, QIC is the market leader in Qatar and a dominant insurer in the GCC and MENA regions. QIC is also the largest insurance company in the MENA region by gross written premium, profitability and total assets. It is listed on the Qatar Stock Exchange and has a market capitalization in excess of QAR 7.8 billion.

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The myth that healthy people don’t need health insurance plans as they don’t fall sick is mostly viable among young adults. However, it is not true. Today, through this section, we will decode five benefits a young adult may get if they buy health insurance at a young age.

Benefits of Buying Health Insurance at a Young Age

Underlying are five crucial benefits of a health insurance plan:

1. You Can Avail of Insurance at Lower Premiums

Health insurance plans are usually calculated according to the age of the proposer of a health insurance plan. The younger you are lower will be the premium you pay. The reason, you are less likely to fall sick; hence the risk of claiming your insurance is close to the minimum.

2. Easy Coverage for Pre-existing Diseases

Buying a health insurance plan at a younger age can also be easier because you are less prone to chronic illnesses. Therefore, the chances of your health insurance request getting rejected are relatively lower. Plus, by the time any need arises, the mandatory waiting period to be served for pre-existing illnesses shall be over.

3. Higher Coverage

As we mentioned above, you can avail higher coverage at lower premiums if you buy insurance at your early age. Health insurance is not limited to offering hospitalisation expenses only but the scope of coverage is also extended to OPD expenses, alternative treatment expenses, domiciliary tretament etc. Also, the No Claim Bonus reward is another most attractive feature, which can be availed for not claiming your insurance. That will eventually add to your sum insured amount up to 50%-100% as per the policy terms.

4. Benefits of Tax Deductions

While filing tax returns, you can also avail of tax benefits  on health insurance  premiums up to Rs 25000. Hence, buying health insurance at a young age can also help you to avail tax deductions.

5. Financially Prepared for Emergency

 Whether it is an accident or an unprecedented heart attack, a medical emergency and the need for financial aid can arise any time! More than ever, you need health insurance when you are active and are taking risks. Hence, a health insurance plan helps you be prepared for an unprecedented emergency.

Finalising It

Although young age is the age of taking risks, it does not necessarily mean keeping health and finances at stake. Health insurance may not safeguard you from unprecedented ailments however it can ensure that your budget does not get harmed while treating the problems. Thus, health insurance is important regardless of your age.

The post 5 Reasons Why a Health Insurance Plan is Important for Young People appeared first on Fintech News.

Link: https://www.insurancebusinessmag.com/us/news/technology/inflations-impact-on-insurtech-investment-427077.aspx?utm_source=pocket_reader

Source: https://www.insurancebusinessmag.com

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On the other hand, the later you get it, the more useless it will be in the future, especially when you’re already older. But maybe buying life insurance has been on your to-do list for a while, and now you’re considering it but looking for a reason to. Luckily for you, in this article, we will discuss some reasons why you should buy life insurance right now. Here are some of them.

Replace Lost Income

Whether you have a steady 8-5 job with a steady income, are self-employed, or own a small business, your income might already be enough for your family’s daily needs.

From housing, car loans, rent, and groceries to your utility bills, these expenses might have already been a part of your monthly budget for a long time. Or even better, you might already cover all of these bills and still have some chance to have fun.

But what if you suddenly lose your job, business, or clients? What then? That’s what happened back during the COVID-19 era, and unfortunately, many people were hit with unemployment and lost most of their income instantly. It’s a terrifying thought but easily solved by life insurance.

With the right coverage in your life insurance, you can replace your lost income whether you lost your job or business or one of your breadwinners died. It’s a grim thought, but if you want to ease your worries about losing your income, then life insurance is the key.

It Can Pay Off Your Loved One’s Debt

All of us are paying off some debt in our lives. Of course, unless you’re already rich enough to pay them off. However, even if you die, some types of debt don’t get dissolved; worse, they might even be transferred to your loved ones. With a sudden loss of income due to your death, they might have difficulty paying them off.

Life insurance can help your loved ones pay these debts you left behind, whether it be credit card debt, personal debt, or even business debt. At a time when your loved ones are dealing with your loss, you don’t want them to worry about the debt you left behind too.

Cover Burial Expenses

Burial expenses aren’t cheap. It can go up to a thousand dollars, not including some of the expenses you’ll have for your guests. Fortunately, you can prepay for your funeral, but that will be another expense, so why not include that in your life insurance?

Life insurance can give your loved ones more of a guarantee with the expenses and more than pre-paying for your funeral, not to mention that life insurance is more versatile because of the different coverage you can have.

College Planning

Life insurance might be the last thing on your mind when discussing your kids’ college expenses, but it is true. Life insurance can be viable if your kids are going to college soon, especially if you already have a lot saved in your account. So instead of going for student loans, you can get funding from your life insurance.

Build Cash Value

Most of the time, people go for term life insurance, which stays in place for some time. However, there are also other options for life insurance which would only get canceled if you cancel the insurance yourself.

Whole life insurance allows you to build cash value over time, which is an attractive prospect for many people. This is even better if you’re planning to while you’re still young, as you’ll have a lot of time to build up that cash value. Now, this cash value can be tapped at any time, which is very convenient if you encounter an emergency in the future.

Estate Taxes

If you’re maintaining an estate, you’re probably planning to leave it to an heir. However, once they receive it, they’ll also be required to pay estate and inheritance taxes. If you’re worried about your loved ones paying these off, then you can use your life insurance to pay off these taxes and funding for its maintenance in the future.

Final Words

Life insurance is something that all of us should have, but only a few of us have it. Some people deem life insurance as something unnecessary. But this is far from the truth. If you’re looking for your loved ones to be financially secure in the future, then life insurance is the way to go.

The post Be Prepared: 6 Reasons Why You Should Get Life Insurance appeared first on Fintech News.

Rapid advances in technology, the continuing talent shortage and rising customer expectations for experiences of all types have disrupted the insurance industry over the last several years, challenging carriers to evolve their service strategies and business processes accordingly. Doing things the way they’ve always been done is no longer an acceptable option; those who fail to adapt risk losing customers and market share.

It’s time for carriers to embrace innovation, leveraging technology to set their organizations up for future success. There are three key areas to watch as strategies and roadmaps are planned for this year and beyond.

The digitization of customer service. The notable shift in customer preference toward purchasing policies online has prompted an increase in digital transformations. As carriers work toward modernizing their technology, more will also look to modernize their approach to customer service. Expect more carriers to invest in the tools necessary to meet customers where they are within the digital domain, without interrupting the experience in favor of clumsy phone experiences, to help answer questions and resolve issues as they arrive.

By embracing a digital-first approach to customer service, customer service representatives can meet their customers where they are and communicate with them through whichever methods they prefer, including chat, voice and video, using CoBrowsing as needed to guide them.  Platforms that enable a seamless experience with the ability to transition across digital channels can greatly enhance customer satisfaction, lower abandonment and boost conversions.

The agent experience has become a strategic priority. Just as there is an urgent need to reinvent the customer experience, there is a great opportunity to nurture the agent network as well. Insurance agents are an important sales vehicle for carriers and require access to a broad range of information related to policyholders, policy applications, underwriting updates as well as billing and payment information. Digital technologies that help insurance agents become more productive can boost agent loyalty, accelerate sales and ultimately grow overall business for both carriers and agents alike.

Too often today, agents have little to no visibility to this critical information within their portals and few digital tools to help them when questions or issues emerge, leading to frustration and churn. The carriers that offer the best digital experience have a distinct advantage and build brand loyalty. The same technology that’s being used to transform the customer experience should also be applied within agent portals, helping them to generate online quotes, streamline processes, provide faster support and help them conduct more business.

Just like with policyholders, meet agents where they are within the digital experience and empower them with flexibility and choice for how they want to connect. This frees the agent from ever having to disengage from the digital experience, for example to dial into a call center, a clunky and inefficient experience. Providing tools that boost productivity and accelerate sales for agents strongly positions carriers to build agent loyalty and increase sales.

The use of AI is on the rise. AI is increasingly being leveraged to enhance the customer experience while creating efficiencies for the carrier and service team. Chatbots that can intelligently route customers to the best available agent is a popular use, but AI can do much more.  For instance, when a policy is being written, insurers can apply AI to conduct background research and more closely monitor for red flags. AI is emerging as a valuable tool from a risk perspective as well, providing a more holistic view of customers and helping to determine if there have been any involved with fraud.

Carriers are increasingly prioritizing the experiences they deliver, both for customers and service employees alike, as a way to differentiate their offerings. Those that prioritize investing in the digitally optimized tools for service and support will be well positioned to increase customer satisfaction, retain top talent and grow market share this year and beyond.

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Internet of Things

The Internet of Things (or IoT) is more commonly recognised as SMART tech. That’s your Alexa personal assistant, your Ring doorbell, your smartphone-controlled TV, thermostat, blinds, etc. The Internet of Things ultimately lumps any physical items that are controlled and operated by an internet connection together. These items can be very interesting to insurance companies. For example, wearables like smartwatches collect data that can be used in your health insurance and smart car technology can affect your car insurance. It’s not too much of a stretch, given that black boxes exist, to think of smart tech in cars gaining data on how you drive, what risks you pose with the way you drive and for your insurance to adjust accordingly. In the meantime, until these tech upgrades are standard, or we can afford a driverless car, there is always auto insurance calculator for the best rates for safe drivers.

Artificial Intelligence

Artificial intelligence isn’t the sci-fi existential crisis that you’re imagining just yet. At the moment it’s main and best use is to spot and replicate patterns. Its uses are seen everywhere nowadays, and even in the insurance industry. One way AI is improving finance is with personalized insurance policies.

Personalized insurance policies are policies that take in as many aspects of your life as possible and only have you paying for things you will actually use. Information is gathered about your home and lifestyle and then applied to your insurance policy. For example, your health insurance might take in data from wearables, family history, lifestyle choices, etc. and create an insurance policy based on what the AI thinks are risk factors in your health. Another example is home insurance. Rather than paying to cover for tsunamis when you live in the desert, or forest fires in the city, AI can detect patterns in your location and your lifestyle and offer you an insurance policy that covers only what is likely.

Not only does the constant improvement of technology and software improve insurance policies and claims themselves, but these updates can also automate it. The whole concept takes the human element out of insurance, allowing for less mistakes so that you’re not overpaying or paying out for something that doesn’t require it.

Cryptocurrency

Cryptocurrency has turned finance on its head. A lot of aspects of finance have been thrown up into the air with the introduction of this digital currency, and the more mainstream it gets the more upended the industry becomes. It’s taken a long time for cryptocurrency to get any bearing on the market, and some would still say it hasn’t, but hopefully the benefits of digital currency can transfer into real world cash. Benefits like the extra security and faster transfer times.

However, there are also a lot of problems with cryptocurrency. The final nature of crypto, in that a transfer can’t be reversed, combined with the decentralized nature allowing for few or no regulations means there are a lot of scams out there.

Considering you could be talking about numbers in the billions, a new type of insurance is hitting the market: crypto insurance. It does exactly what you think it does: it covers your crypto. It protects your crypto assets so that you’re reimbursed if they are stolen in certain situations.

Mobile apps

Mobile apps have done a lot for finance in general. Users can harness a great amount of control that wasn’t previously afforded to them. They can compare policies, get pickier with what’s included in their policy, play with when they have to pay, better manage their money, etc.

Of course, all of this was also available as an option beyond mobile apps, but they are small moves that aren’t quite worth the time sitting by the phone while on hold music plays. There is also the option to go onto the website directly, but it’s typically a headache doing it via a website unless you pull out the laptop: again, not worth the effort. The ease and convenience of mobile apps isn’t to be undersold. It has allowed a lot of people better control of their finances, their insurance, and other aspects of their life without it feeling like a task, which can be the difference between doing something and not.

Plus, a lot of these mobile apps have chatbots. Websites and apps with chatbots are rising above the rest due to the ease in which customers can get answers. Again, sometimes a question simply doesn’t merit an hour on hold to reach the customer service team. Chat bots are making insurance policies a lot easier to navigate. You can ask for your basic information and get a quote in minutes, and if you’re confused about something, get an answer instantly.

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