There is a wave of excitement among players in the insurance industry in Zambia over the announcement of the inaugural Insurtech conference to be held on the 26th and 27th September 2024 and Klapton Re is not an exception. The event organised by Gralix, a Zambian actuarial consulting firm is expected to showcase some of the technological advancements that have been brought to the fore in the insurance space. To understand the excitement brought by this event, we thought it wise to share some insights in what Insurtech is all about.
WHAT IS INSURTECH?
Insurtech is a combination of “insurance” and “technology”. It is an emerging industry that utilizes technology and modern innovations to change how traditional insurance is performed.
UNDERSTANDING INSURTECH
Insurtech is premised on the belief that the insurance industry is ripe for innovation and disruption. Insurtech is exploring avenues that large insurance firms have less incentive to exploit, such as offering ultra[1]customized policies, social insurance, and using new streams of data from Internet-enabled devices to dynamically price premiums according to observed behavior. In addition to better pricing models, Insurtech are testing the waters on a host of potential game-changers. These include using deep learning trained artificial intelligence (AI) to handle the tasks of brokers and find the right mix of policies to complete an individual’s coverage.
INSURTECH SOLUTIONS FOR INSURERS
Insurtech plays an important part in changing how coverage is applied and paid for in a number of different ways. Some of the clearly identifiable solutions that Insurtech has brought to the fore in insurance are in the area of underwriting and claims management processes. They have also become key in providing solutions around risk mitigation. Some of the other key specific areas of benefit include:
Enhancing customer experience. By leveraging technology, customers are more engaged in selecting their coverage, understanding their needs, and getting personalized service. Instead of having to travel to a branch or speak to a representative, the future of Insurtech is moving towards self[1]serve, online dealings where customers have their choice of engagement channel.
Promoting efficiency. Policy-seekers and policy-holders can often research and explore options using the internet and apps. Without having to wait for business hours or an available representative, many Insurtech companies empower users to quickly access the information they need without being bogged down in processes.
Reducing operating costs. Traditional insurance companies rely on operating in physical buildings. But, Insurtech companies can operate remotely with staff engaging with customers around the world. The operating model of the online company is similar skimmer with less overhead.
Decreasing fraud. By leveraging data, analytics, trend analysis, and machine learning, Insurtech companies may be able to detect fraudulent activities if inconsistencies in data arises. In addition, big data may also be able to discover potential loopholes that insurers can seek to close to avoid exploitation.
CONCLUSION
The traditional insurance industry is being disrupted by the introduction of technology. This new sector called Insurtech offers customers a new way of doing things by gathering information differently and analyzing information more accurately. Klapton re is ecstatic about the timing of this event as it has come at a time when the reality of the adverse impact of climate change has transformed our perception of the role that technology is playing in building resilience and mitigating of losses. This realisation has made us proud to be one of the sponsors of the event.