Debunking Common Misconceptions about the Insurtech Industry
Insurtech, or the use of technology to improve insurance products and services, continues to be a rapidly growing industry. Despite its many benefits, there are still misconceptions that are held about this industry. In this blog, we will explore several misconceptions about the insurtech industry and provide insights that help to debunk them.
Insurtech is expensive
One of the more common misconceptions about insurtech is that it is expensive. While some insurtech solutions may require significant investments, many are quite affordable. In fact, because the benefits of some insurtech solutions, like Verikai, help insurance companies reduce their costs by streamlining underwriting processes and increasing overall efficiency, the potential for increased profitability may outweigh the initial investment made in these solutions.
Insurtech is a threat to jobs
Another common misconception is that insurtech will lead to job losses, especially in the underwriting sector. While it’s true that insurtech solutions may automate some of the processes that were previously done by humans, it does not necessarily mean that this will lead to job losses. In fact, insurtech solutions can help insurance companies free up their employees’ time and allow them to focus on higher-value tasks within the organization. Moreover, growth of the insurtech industry has created new job opportunities in areas such as data analytics, cybersecurity, and software development.
Insurtech is not secure
Data security is a concern for many when it comes to using an insurtech solution. However, it is important to understand that insurtech companies take data security seriously. When considering working with an insurtech solution, it’s essential to understand what measures they take to safeguard sensitive customer data and how they follow the strict regulations and compliance requirements regarding data security standards.
You can learn about the security and data standards that Verikai follows by visiting our Security and Compliance page on our website at: https://www.verikai.com/security-and-compliance/
Insurtech is only for personal lines insurance
There are many who believe that insurtech is most relevant for personal lines insurance, such as auto or homeowners. However, insurtech solutions like Verikai work closely with health and life insurance and have developed solutions to support these lines of business. These solutions can help insurance companies manage their risk more effectively.
Insurtech is a rapidly growing industry that has the potential to revolutionize the insurance industry. While there still remain some misconceptions about insurtech, there are several benefits that can outweigh these doubts. By leveraging the power of technology, insurers can provide better customer experiences, reduce costs, and manage their risk more effectively.
Verikai provides the trusted predictive data and risk tool for insurance companies looking to improve their underwriting precision and efficiency. Our AI-powered machine learning platform provides actionable insights into the behaviors of millions of people, helping insurers to make more accurate risk assessments and drive profitable growth. Contact us to schedule a demo of our underwriting platform.