For decades, insurance had a reputation for being antiquated and resistant to change. But with technological disruption shaking things up across all industries, even the insurance companies had to give him. The result? Insurtech, short for insurance technology, reached over $500 million market evaluation last year. From AI to blockchain, the insurance industry is now employing several cutting-edge technologies for its future-proof revamp.
Made possible by the growing popularity of IoT, big data makes up a considerable part of that transition. Connected devices hold the key to making the underwriting process a lot faster, cheaper, and more efficient for insurers. Whether it’s auto insurance or health insurance, tracking devices can give underwriters a never-seen-before advantage.
Instead of relying on indirect indicators like age or gender, as insurers traditionally would, they can now assess risk on the basis of much more sophisticated data. A driving app can tell them how often someone speeds or how suddenly they brake. A fitness tracker, on the other hand, gives information about physical activity, quality of sleep, and overall lifestyle that is crucial to determining a policyholder’s life plan premiums. To insurers, IoT devices are a gold mine of big data.
It sounds like incorporating big data for ...
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