InsurTech is the combination of two words Insurance and Technology. The concept of InsurTech involves the inclusion of new innovations and modern technologies to acquire profits and productivity from the present Insurance Industry Model.
With the help of Insurtech, various Insurance companies are now able to explore paths to an innovative platform with its customized policies, social insurance, and dynamically price premiums as per the observed behaviors.
Insurance is one of the oldest and traditional methodological financial markets; hence it tends to favour those with bulky pockets and plentiful experience in the market. Initially, the broad actuarial table method was used to assign policy seekers to a risk category. Meanwhile, the adjustment was done in this way that enough people are aggregated together to ensure that the policies bring profit to the companies. In this method, there was a very basic level of data which were used to club people into groups which eventually resulted in few people paying more than they should actually pay.
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