Insurtech is reformatting the insurance industry by changing the way individuals receive customer service, make policy management easier and upstart a little competition, according to a recent report. With 74 percent of respondents finding innovations like Fintech (financial technology) a challenge for their industry, according to PwC, another 43 percent say that they have Fintech at the core of their strategy. Insurance technology is like a new brand that stands to make the insurance industry a lot of money. In 2016, this particular industry raised $1.7 billion across 173 different deals, according to a 2016 CB Insights study.
If you’re not sure about whether insurance technology matters to your company, check out this blog below. This is how insurtech helps small businesses.
How Things Were Before
For 28 million small business owners, things used to be very difficult when it came down to small commercial insurance.
- Lack of options—Unfortunately, many smaller business had a harder time finding a carrier for them. Insurance companies want big clients, which left many small businesses out in the cold. If you needed a good policy, there wasn’t many to choose from.
- Long paper applications—Computers and highly integrated systems have made the application process far shorter. Back in the day, this was all done with pen and paper, by each individual question. And sometimes the questions repeated themselves, making the process that much longer to complete.
- Lack of small business expertise—When you finally found an insurance carrier that actually wrote small policies, then comes the fun part. Insurance carrier at the time didn’t have expertise in every small business area.
How Things Are Now
Now that insurtech is in the picture, things have been revamped to a whole new level. Because of this jump in technology, small business owners now have access to:
- Economies of scale—The internet has allowed insurance companies the ability to be able to serve people in need all over the world. This has allowed for the process of getting insured to become smoother. And being online has helped expand options; you can find the policy that best suits your need.
- A single online application—Big paper applications that are long, redundant and complex are a thing of the past. Now, all it takes is 15 minutes to fill out a single application. Just like that, you can have quotes from multiple insurance carriers.
- Centralized knowledge and advice—Once again, the internet has made everything better. Business owners can have access to a specialized insurance agent at any given time. Finding an expert doesn’t have to be difficult these days. Now, you finally don’t have to rely on your local broker for everything.
Insurtech is revolutionizing the way that small business owners look at their insurance policies. The industry is expanding and isn’t going to go away anytime soon.
About Axis Insurance
At Axis Insurance Services, we aim to help our customers identify their exposures and protect themselves. Founded in 1999, we offer insurance programs to a wide variety of professionals and industries including attorneys, real estate, healthcare, architects, and more, and also have a wholesale division. We pride ourselves on offering flexible insurance coverage tailored specifically to each customer’s needs. To learn more about our solutions, contact us at (201) 847-9175 to speak with one of our professionals.
