How Insurtech is changing the Insurance Industry

Balancing Tradition and Innovation:

How Insurtech is changing the Insurance Industry

1. Introduction

A fast-evolving world means fast-changing technology. When it comes to the insurance sector, there is a delicate balance to be achieved between tradition and innovation. On the one hand, insurance has been around for centuries and has established certain traditional practices and approaches. On the other hand, rapid technological advancements and changing consumer expectations, driven by Insurtech, are pushing the industry towards innovation and disruption to convert the way the industry does business.

In this article, we will explore the opportunities that arise when trying to combine tradition and innovation in the insurance sector.

https://www.chronicpoverty.org/economy/how-insurtech-changing-insurance-market/

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2. Tradition vs Technology

Since the Insurance sector start to develop has evolved to become a key player in modern economies, providing a safety net against unexpected events and changing the way our economies are constructed.

However, the exponential growth of technology has made evident some problems in the sector such as mispricing of premiums, or a slow and bureaucratic claims process. Nevertheless, in these limitations, the industry finds a great opportunity to adapt to new changes and integrate new players to improve the sector's future.

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https://www.ca-assurances.com/en/Channels/Trade-and-regulation/5-challenges-for-the-insurance-sector-in-2022

https://www.gb-advisors.com/insurance-companies-challenges-2022/

3. A winning combination

Clearly, we live in a digital and technological age par excellence. InsurTech companies are the perfect example of this, being the synergy between traditional insurance and technology.

This combination allows these new companies to offer several benefits such as actualized data and accurate information to get a better assessment and price risk, obtain a higher level of customization and improve customer satisfaction, as well as increase revenue for insurers.

Despite this, InsurTech doesn't pose a threat to established insurers; rather, it is a huge advantage since it can be used for process improvement and as a partner for gaining access to new markets.

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https://www.esic.edu/rethink/tecnologia/que-es-insurtech-y-cual-es-su-impacto-c

https://www.linkedin.com/pulse/insurtech-el-futuro-de-las-aseguradoras-tradicionales-carlos-correa/?trk=pulse-article_more-articles_related-content-card&originalSubdomain=es

4. It´s time to act

In the post-pandemic era, the importance of digitizing the industry to meet the needs of increasingly digital customers has become clear. This year there are high expectations to advance the digitalization of the actuarial system by investing more in innovation and achieving the best insurance performance. The main goal is to modernize the sector through new technology to improve the relationship between insurer and insured, making it more efficient and productive.

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