Big Data Analytics

Predictive analytics assist in anticipating customer behavior using collected data. Applications in the insurance sector include pricing and risk selection, fraud detection, triaging claims, and trend forecasting.

Artificial Intelligence (AI)

AI expedites claim processing and underwriting, customizing policies as per customer needs.

Machine Learning

A branch of AI, machine learning is used for risk analysis and policy management by learning from datasets.

Internet of Things (IoT)

Smart home components, car sensors, and wearable tech collect data to assess risks and adjust insurance pricing accordingly.

Cloud Computing

Insurers use the cloud to host platforms, store data, run marketing campaigns, and manage daily operations using ERP and CRM systems.

Drones

In agricultural insurance, drones assess risks and damage to properties through aerial inspections.

Social Media Data

Companies like Kroodle use social media for customer engagement and fraud detection based on user activity.

Telematics

Used in auto insurance, telematics systems like Progressive’s Snapshot track driving behavior to determine policy rates.

Mobile Apps

With the rise of smartphone usage, insurers utilize mobile apps for customer engagement, streamlined processes, and reduced paperwork.

Blockchain

Blockchain technology, such as IBM Blockchain and OpenIDL, enhances transparency and automates insurance regulatory reporting.

Examples of InsurTech in Insurance

• Oscar: A health insurance startup offering telehealth services and wearable integrations.
• Lapetus Technology: Uses facial analytics to predict policyholder longevity for life insurance underwriting.
• phrOS: A blockchain-based system for managing personal medical records.
• iFleet: A fleet-tracking solution using telematics for usage-based insurance.
• Tractable: AI-powered image recognition for automated vehicle damage assessment.

InsurTech in Developing Countries

In Bangladesh, Kenya, and India, blockchain, IoT, and cloud computing are transforming insurance accessibility and risk assessment.