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InsureTech Explained

InsureTech Explained: Innovations Redefining Insurance

InsureTech Explained: Innovations Redefining Insurance

Discover how technology is easily revolutionizing the insurance industry. Learn about the world of InsurTech with our easy-to-understand guide.
January 14, 2024
Mobinul Islam Riyadh
Sadman Sakib Khan
Sadman Sakib Khan

Sadman is a marketing professional and a fervent devotee of the ever-evolving world of marketing & technology. Possessing a knack for crafting compelling narratives, Sadman passionately engages in the creation of top-tier content in close partnership with esteemed subject matter experts.

InsureTech Explained

What does InsurTech mean? Also, why is it developing so quickly, attracting around 4.5 billion dollars of investment this year? In simple terms, InsurTech assists you in focusing on value, customizing, and creating more efficiency.

This technology is smartly transforming and improving the insurance industry. InsurTech benefits everybody involved in the insurance industry, including brokers, underwriters, policyholders, and consumers.

The goal of InsurTech companies is to make different parts of the insurance procedure better, from sales and administration policies to customer service and handling claims. In this article, you will get InsurTech explained, which explores how it’s changing the insurance industry and many more things.

What does InsurTech mean?

InsurTech brings together insurance and technology, similar to how fintech combines finance and technology. People ask about the definition of Insurtech a lot. It is a sub-domain of fintech, the technology that does creative things in insurance. InsurTech is changing the insurance industry by utilizing the latest tech, such as cloud computing, Artificial Intelligence, blockchain, the Internet of Things, and analytics, etc.

Learn more about, History, Evolution & The Future Of Fintech Industry And Its Subdomain

They help figure out risks via efficient eKYC, do background checks effectively, seize fraud quickly, and handle claims faster.

The main aim of InsurTech is to make insurance work better, cost less, and be able to grow easily. It’s like the engine behind creating, selling, and running insurance. InsurTech is all about changing the insurance sector with new ideas and innovative ways of doing things. 

It’s changing the industry in ways that are overlooked by traditional insurance companies, such as extremely personalized policies and the use of data from IoT devices to decide on prices based on how people act.

InsurTech Case-studies

Some Insurtech examples are the companies named Dacadoo, Total Systems, and Avinew. Let’s take a look at them in detail.


Dacadoo uses consumer devices like smartwatches and phones to collect data through a built-in API. This data helps create consumer profiles for each person, letting Dacadoo evaluate risk in real-time. As life changes happen, whether positive or negative, Dacadoo adjusts these profiles accordingly.

Total Systems

Total Systems is a leading insurance software solutions company that plays a big part in the InsurTech revolution. With more than 54 years of industry knowledge, the company has consistently provided end-to-end, creative solutions. These solutions aid insurers in improving their operations and providing outstanding customer experiences.


Avinew leads the way in InsurTech, especially with the Internet of Things (IoT) technology. They give customers lower insurance premiums when they use an automatic driving system, alter their driving habits, or opt for safer routes. This data comes from onboard devices that monitor how vehicles are used and driving patterns.

Why is InsurTech Important: The Benefits For Both Businesses and Consumers

Insurtech is changing the way we used to deal with insurance in general. There are many reasons why InsurTech is important. They are:

Values Individuality

Because of the creative ways of collecting and processing information now, there are new tools available in InsurTech that assist in understanding what each person truly needs. This doesn’t just make prices better, but it gives more consistent, dependable coverage based on past information.

Easy to Access

Nowadays, most people handle all of their tasks using their mobile phones. They want the exact same mobile ease for tasks regarding insurance. Since InsurTech is mobile-friendly, it makes it simple for people to compare, check, and decide on insurance right from their homes. You can see how your claims are doing on your own phone, saving time for both you and the insurance company.

Improves the Customer Experience

By using technology, consumers now play a more active role in choosing their insurance coverage, figuring out what they need, and getting customized services. Rather than talking to a representative or going to a branch, the future of InsurTech is all about moving towards online dealings and self-serve, where consumers can select the way they want to engage.

Reduces Paperwork

InsurTech can become the engine that powers innovation in an industry well-known for its love for paperwork. It allows brokers and carriers to tackle issues more smartly and humanly by using AI, data, and automation. This means less paperwork and more meaningful interactions.

Decreases Operation Costs

Old insurance companies depended on physical offices that required physical labor. Today, InsurTech firms can work from anywhere, with employees connecting with consumers across the world. The InsurTech company’s way of operating is similar to skimming, with lower overhead.

Empowers the Customer

Customers are the force behind InsurTech, giving them the power to assign value to every aspect of their lives. Insuretech is enabling insurance coverage easily accessible for everyone.
Customers actively participate in the entire procedure, from signing up to making claims, and they can even decide who serves on the insurance claims jury panel during a hearing. This improved level of understanding and involvement brings advantages to consumers.

Boosts Efficiency

People looking for insurance can use apps and the internet to find information and explore choices. With InsurTech companies, you don’t have to wait for an available representative or business hours; you can easily get the information.

Increases Customization

InsurTech lets insurance companies gather and analyze data from customers, which enables the companies to offer customized products and upgraded services. Also, InsurTech organizations can establish strict security and anti-spamming rules to make sure clients feel confident when they make online transactions.

Enhances Flexibility

In modern InsurTech offerings, you are likely to find plans that are customized, flexible, transferable, or short-term. Rather than committing to long-term agreements, InsurTech technology is more inclined to offer customers precise coverage for a particular requirement over a particular duration.

Reduces Fraud

InsurTech companies can use analytics, data, machine learning, and trend analysis to identify fraudulent activities when there are inconsistencies in the data. Moreover, big data can help discover possible loopholes that insurers can try to close to prevent exploitation.

Know The Technologies Used in InsurTech

There is a constant flow of new technologies employed in InsurTech that are reshaping how insurance works. Some of the most noteworthy technologies currently used in the InsurTech sector are:

Blockchain Technology

While widely recognized for cryptocurrency, blockchain technology is fundamentally rooted in distributed, immutable ledgers. This enables records to remain unchanged, ensuring reliability and security in storing information.
Furthermore, it enables smart contract execution to be on a blockchain, staying inactive until certain rules are fulfilled to verify an insurance client or to release insurance proceeds. The use of blockchain technology enhances data security standards and creates trust between the insured and the insurers, simultaneously reducing transaction costs.
This technology improves the quality of data collection, makes claim processing faster, and frees human resources.

Artificial Intelligence

Artificial intelligence (AI) functions enable specific tasks that once needed human interaction to currently be solely handled by technology. For instance, previously, consumers needed to talk to representatives to get the answers to their queries, but now, chatbots can engage in interactive conversations and help consumers without human interaction.

Machine Learning

Machine learning is a part of AI. InsurTech companies gather lots of data that can be used to extract important information about their consumers and their potential needs. The collected data can be used to model risks and predict future losses. Additionally, demand modeling helps calculate premium amounts and forecast demand.

Advanced Analytics of Data

Advanced data analytics helps InsurTech companies understand their customers’ needs better, allowing them to offer customized products and services. This gives them an advantage over other insurers by enabling faster claims processing and customizing marketing efforts for individual customers.


In the realm of InsurTech, making things more efficient is key. So, when customers fill out insurance forms online, the information gets saved right away in a data warehouse. This information is also used to create a policy that is all set for signing. Automation tools are used in InsurTech to handle the signing task by themselves and to skip manual human intervention.

Internet of Things

The Internet of Things (IoT) is another InsurTech invention that is dependent on physical innovation. Even though it is a digital idea, IoT depends on the connection between software and physical products.
For instance, many car insurers now provide devices that measure things like car speed, driving, and handling habits. This information can be used to reward good driving habits or penalize bad ones. With this level of detailed information, InsurTech companies can now set premiums based on even the smallest details.


InsurTech depends on cutting-edge hardware technologies, too. Drones are a great solution for checking out properties, assessing any property damage that might be risky for people to go to, or inspecting a place for insurance claims.
They are utilized in aerial surveys to check properties in risky areas like earthquake-prone zones and places with storm damage, liquefaction, or erosion. Drone technology is now depending more on high-quality photos and videos, which lets assessors depend heavily on images and saved pictures from flights.

Final Thoughts

Technology is disrupting the traditional insurance industry, and InsurTech is leading the disruption. InsurTech does things differently, as it collects information in new ways, makes contracts faster, and analyzes data more precisely. It is transforming the insurance industry in positive ways. 

InsurTech uses technology to drive innovation, make customers’ experiences better, and boost efficiency. While some people worry that the personal touch of traditional insurance might be lost, InsurTech aims to provide cheaper, more flexible, and customized coverage. To stay ahead in the digital age, it high time for insurance companies to embrace technology