Insurtech startups have managed to carve a sizable niche for themselves in the global industry sphere. They are at the root of the disruption in the insurance industry that has made traditional insurance companies sit up and take notice.
Insurtech startups are technology driven companies which are foraying into the insurance segment, offering greater innovation in insurance products, services, and experiences, while offering easy coverage options to a growingly tech-savvy customer base.
While they have not managed to obtain significant market share till now, it is evident that they represent the future of the insurance industry in a manner of speaking. This is what insurance companies in the conventional realm should monitor in order to stay ahead of the competition.
The rise of insurtech startups has mainly been attributed to the digital transformation in insurance that they have made mainstream, in a manner of speaking. At the same time, they have enabled more customer-centric insurance products and improved service, while saving both time and money. These are aspects which are contributing to their rapid rise throughout the world. Here are some aspects that are worth noting in this context:
What lies behind the disruption in the insurance industry, brought about by insurtech startups? What is their X-factor in a manner of speaking? Well, it is a combination of factors in reality. Some of these include the following:
So where does the traditional insurance sector go from here? Experts feel that going forward, there will be more collaborations between traditional and insurtech companies. Brick-and-mortar traditional players are already experimenting with digital platforms and innovative solutions for retaining their customer base.
They will increasingly want to reach out to insurtech startups for leveraging their technological expertise, while offering the reliability and brand value that they bring to the table. This could become a dominant trend going forward. Otherwise, the disruption that is afoot, could eventually see insurtech gaining ground as a concept itself, something that is already taking place worldwide.
What is actuarial science and how does it relate to analytics?
Actuarial science is all about the assessment of financial risks in finance and insurance, with the use of statistical and mathematical methods. Actuarial science can apply analytics in order to classify, evaluate, and predict uncertain and future events. The assessment and identification of probable losses/risks can be accomplished by the integration of analytics into actuarial science.
How can analytics be used in actuarial science?
Analytics and data science can use multiple techniques within the broader paradigm of actuarial science to make informed and accurate predictions about probabilities of risks. Some techniques include recognition of patterns, visualisation of data, and statistical modeling.
What are the benefits of using analytics in actuarial science?
Analytics makes actuarial science-related underwriting functions more efficient, enabling faster and more accurate visualisation of data, evaluation and identification of probable risks, recognition of vital patterns, and more accurate pricing/risk assessments.
What are the challenges of implementing analytics in actuarial science?
Technological integration and lack of awareness/knowledge about analytical tools are the major challenges towards the implementation of analytics in actuarial science. Also, the quality of data is another aspect that has to be taken into account.
Are there any examples of successful implementation of analytics in actuarial science?
One example could be using data analytics in actuarial science to evaluate the historical and present data of a customer along with identifying patterns in behavior and other aspects for calculating a fair insurance premium as per his/her risk levels.