The use of technology in insurance has resulted in information being readily accessible with a click of a key on a laptop.In rescent years information assymetry between insurance companies ,brokers and the consumer has been largely cut down. Insurtech has played a huge row in globerlization which had resulted in countries seperated by thousands of miles reduced to a simole click on the internet.
Insurance companies can now acces the Reinsurance market in any country of their choice but developments of fraudulous activities has also increased. Bancassurance is a market which has taken advantage of technology making it difficult for insurance agents to get business as banks have become a 1 stop shop for consumers to do all transactions at once.Smart technology has also made life dificult for insurance brokers as it can now cypher information online and come up with a large enough sample size to create new business classes leading to insurers not to depend on intermedieries for innovation.
Insurance agencies are facing dificulties as their marketing tactics cant be compared to for example insurance adverts pop ups on the internet and that is proving telemarketing covers a larger surface area than agents and its a lot cheaper.
Technology has also acted as a catalyst and other insurance sectors are taking advantages of this techno.Reinsurance brokers can now get business not only limited to one market but every corner of the world.The row played by agents cant be easily pushed over because techno lacks the physical presence, the ability to explain judging from the reaction of the client,negotiating contracts to tailor suit the consumerTechno has also created investment vehicles for insurers to model risk into mathematical fomulaes and can be traded on stock markets leading to creation of new business in areas 50 years ago the insurance sector rejected such risks but now it is a reality eg cyber risks or clients with life theatening illnesses.
Islamic insurance (Takaful Insurance) has also helped religious people who dont believe in traditional insurance not to feel insecure because of lack of insurance.This as a risk management tool is now available because of globerlization and both industries takaful insurance and traditional insurance to learn from each other with the same goal in mind.
Technology has allowed us to accurately predict catastrophic disasters, cut down on moral hazard, decision making in morale hazard , accurate calculation of insurance premiums etc, the list is endless.
We look forward in new developments in insurtech as we can only embrace the ever changing world.