Insurtech: understand what it is and why it has gained attention

You've probably had to file your insurance claim or know someone who had to, right? There are very few cases in which the entire situation has been resolved in an uncomplicated way, and the problem is always in excessive bureaucratization of the insurance market.

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Is that ever going to change? The good news is that the problems, when it comes to taking out insurance and using it, are being revolutionized little by little thanks to the cutting-edge technology implanted in insurtechs, - “sisters” of fintechs - but on the security side. Do you want to know more about these organizations and what are their objectives? Keep reading!

What is an insurtech?

Even though you already know the concept of a startup, it's worth mentioning briefly to better contextualize insurtechs. Startups are a true innovation in the business world and are basically companies that aim to start something new. A startup's business proposition is visionary and many — most of the time overwhelming — are applicable. One of its characteristics is the use of technology in favor of your operations.Understood that technology and innovation are buzzwords in today's world, many companies that combined knowledge from their specific sectors with emerging technological development have appeared on the market. You might remember that we've already talked about Fourth industrial revolution And Das Govtechs, Lawtechs, Edtechs And the already mentioned Fintechs.OK, but the insurtechs, what are they anyway? This word comes from the combination of INSURANCE and TECHNOLOGY and they are precisely startups that emerged to revolutionize the insurance sector through innovative technologies. And all types of insurance play a part in this game, since they are the products contracted by consumers. Reducing bureaucracy without losing legal certainty is already possible and very necessary.

What, in fact, led to the revolution proposed by the insurtechs?

As we said, it is almost impossible for someone not to have experienced, witnessed, or been aware of annoying situations involving insurance, its coverage, late claims, unpaid premium payments, etc. — so, in order to improve this very important market and also the individuals' experience with this product, insurtechs were idealized. There was no one to turn to: the problems related to insurance were not solved administratively; judicially, the cause was also stagnant for years before there was an average answer about the consumer rights, so no one was interested in the “solution” anymore, since it only seemed to generate problems. With all of this, the profit margin dropped dramatically over the years, so some action had to be taken. Currently, the way in which products and services are sold focuses on user experience and customer journey, and not just blindly on the profit margin. Improving systems and methods is urgent! And mind you, if consumers feel safe again and trust the hiring of less bureaucratized and more personalized companies, the profit, as a result, will take off. That's the idea of the insurtechs.

How insurtechs benefit the insurance market

The insurance market is traditional and, as such, also has the strong regulatory characteristic. This means that it follows very specific bureaucratic and legal processes and that, almost none of the time, does it open space for interpretation in the specific case. Even, sometimes, this staticity hurts specific cases experienced by individuals. Unlike other sectors of the Brazilian market, the action could not come before the legislation in the case of insurtechs. Innovative mobility entrepreneurship, for example, had “the bull in front of the oxen” and it worked out well: ubers and alternative transports arrived before their legislation in the country. A similar situation could not and was not applied to insurtechs that have been on the rise since 2010, but they are still an early-stage (but very lucrative) market, which is already heating up the market. digitization of processes insurance contracts and claims triggering gave consumers much more autonomy. Therefore, the greatest benefits provided by insurtechs in the modern insurance market landscape - and for consumers - are:

• improvement in the consumers' experience when taking out insurance;
• attracting new consumers to the insurance market;
• encouragement for other sectors and even the government to develop more innovative services;
• I encourage the opening of more insurtechs;
• positive change in the image of the insurance sector.

Because of all these points that we raised above, the investment in a business management system it is also indispensable. If your company is a technology company, Repetitive and manual processes don't fit there. There is also no longer the possibility of having the luxury of losing this previously registered information about the company, its operation and its customers, so the cloud computing It's also something to consider. And have contract signatures changed in the digital age? Yes, and how! Do you still use pen and paper to sign documents? Do you have to carry the contract to recognize a notarized signature? The ideal solution for you, we at Clicksign can offer: electronic signature and signature with digital certificate. No need to thank you, let's grow together! Do you know what the adoption of these technological mechanisms can do with your conventional insurance company? Read it below:

• increase profitability;
• lower costs;
• resolve old bureaucratic bottlenecks;
• online claims management;
• personalization of contracts.

It's no small thing, isn't it? The importance of insurtechs goes beyond the insurance market, but the entire society benefits from innovative entrepreneurship. Count on our solutions to optimize your business model!