Introduction
Insurtech includes the use of technology innovations to bring in savings and efficiency to the insurance industry model. The term insurtech is a combination of 'insurance' and 'technology'.
Understanding Insurtech
Insurtech plans to use data from all possible sources, including GPS tracking of cars and the activity trackers on wristwatches. The data collected can be used to build more finely delineated groupings of risk leading to pricing the products more competitively.
Insurtech emerged in the year 2010. Between 2019 and 2023, the global market is expected to grow 41% annually. There are a lot of regulation issues in the sector, and many established insurers are reluctant to work with them. However, these startups still require the help of traditional insurers to handle underwriting and to manage catastrophic risk.
