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The Emergence of Technology in the Insurance Market

The convergence of technology and the insurance industry, “Insurtech," is

transforming how insurance is perceived, delivered, and experienced. This change has been

taking place due to the urgent need for efficiency, customer satisfaction, and security in this

digital world. The integration of advanced technologies such as artificial intelligence (AI),

and blockchain technology is creating new opportunities for growth and innovation in this

industry, and rising insurance start-ups are capitalizing on this new concept.

Transforming Underwriting: How Startups Disrupt Traditional Insurance Models


The underwriting process is defined as “the process of evaluating a risk to determine

if the insurance company will insure it and, if yes, then pricing it.”(Insurance Training

Center). This is the foundation of the insurance industry and it is going through a significant

transformation due to technological advancements. Traditionally, underwriting involved

manual assessments and a considerable amount of paperwork, often leading to delays, errors, and long labor hours. However, AI and machine learning are now automating and optimizing this process by utilizing vast amounts of data from various sources. These rising technologies can predict risks more accurately and efficiently, leading to reduced time in underwriting while being accurate.


The Emergence of Technology in the Insurance

Startups are the key players in this disruption. These Insurtech startups leverage big

data to assess risk in real-time, reducing the reliance on traditional methods and significantly

cutting operational costs as well. According to Accenture's underwriting employee survey,

they found that up to 40% of underwriters’ time is spent on non-core and administrative

activities, and estimate that this represents an industry-wide efficiency loss of up to $160

billion over the next five years (Lorenzoni & Reilly 2022: 6). This statement could be

exaggerated and extremely case-based, but companies could adapt to this new wave of

innovation to reduce costs during underwriting processes.


Enhancing Customer Satisfaction and Security

Technology is playing a crucial role in not only streamlining processes but also satisfying the evolving demands of consumers in the insurance market. Insurance companies must handle claims in an efficient manner where the consumer is satisfied with the speed of how these claims are handle, as seen evidently in a survey done by Accenture, which they state consumers are more satisfied when claims processing is handled in a fast manner (idem: 5). Furthermore, an implementation experiment done by Vienne Insurance Group demonstrates the benefits of integrating technology in operations regarding claims processing, as they state that “The AI-based system led to as much as a 73% increase in claims process cost efficiency, and 50% of customers who used the self-liquidation application said they would recommend it to a friend or family member.” (ibid.). Besides, it is worth noting that automated claims processing could further improve accuracy. According to studies based on surveys provided by Accenture, “while the goal was to improve customer satisfaction, the implementation of the AI-based system also led to a 10% improvement in claims accuracy.” (idem: 6).


The intersection of technology and the insurance industry is driving profound

changes, from transforming underwriting processes to enhancing customer satisfaction and

security. Looking into the future, I believe the insurance industry should keep its field of view

The Emergence of Technology in the Insurance Market 3 open for technological advancements to stay competitive and meet the evolving needs of consumers. By leveraging AI, blockchain, and other cutting-edge technologies, insurers can enhance their services, streamline operations, and ultimately, deliver greater value to their customers.


The Emergence of Technology in the Insurance Market, Bumki (Isaac) Park, Author


Disclaimer: This article is provided for informational purposes only. The views expressed by the author are their own and do not necessarily reflect the opinions of our organization. While we strive for accuracy, we make no representations or warranties regarding the completeness, reliability, or suitability of the content. Readers should exercise their own judgment and verify any information before acting upon it. We disclaim all liability for any errors, omissions, or consequences arising from the use of this article.


Works Cited

Kidecha, Sanjay. “Introduction to Insurtech and Its Benefits to the Industry.” Kody Technolab,

2 Jan. 2024, kodytechnolab.com/blog/how-insurtech-will-transform-the-industry/.

Lorenzoni , Andrea, and Michael Reilly. “Why Ai in Insurance Claims and Underwriting.”

Improving the Insurance Experience, 2022,

-Why-AI-In-Insurance-Claims-And-Underwriting.pdf.

“What Is Insurance Underwriting?” Insurance Training Center, 26 Mar. 2024,

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