Insurtech

Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Insurtech is a combination of the word’s “insurance” and “technology,” inspired by the term fintech. The belief driving insurtech companies and investors in the space is that the insurance industry is a good candidate for innovation and disruption. Insurtech is exploring avenues that large insurance firms have less incentive to exploit, such as offering ultra-customized policies, social insurance, and using new streams of data from Internet-enabled devices to dynamically price premiums according to observed behavior. Insurtech is the use of technology innovations designed to make the current insurance model more efficient. By using technology such as data analysis and AI, insurtech can allows products to be priced more competitively.