What is insurtech?

InsurTech generally refers to the use of Technology FOR Insurance efficiency gain in their processes of claims, policy documentation, distribution, risk analysis etc. While it aims to improve the buying experience and customer satisfaction, it also enhances the insurers’ profit margins by lowering their operational costs in underwriting, policy processing etc. and loss ratios in paying less claim losses and related expenses than the premiums received.

It appears that the definition of “Insurtech” is narrow for both “Technology” AND “Insurance”. Rapid technological advancement in AI, quantum computing, material science, biology etc. are changing the way we live and work, not just FOR insurance. Along with these technologies, new risks emerge – many of which, the impact is not quantified until some have become obvious and significant, for eg, the case of asbestos, or the use AI algorithms on social media for criminal activities etc. Any potential fallout and liabilities need to be contained financially.

Since “risk” has a negative connotation, “insurance” – one of the many tools under the category of risk transfer mechanisms, is loosely used to refer to the complete suite of risk management solutions that ranges from risk transfer, risk reduction and risk retention.

At InsurTech.SG, beyond examining the relationship of Technology AND Insurance, we will discuss how the Technology OF Insurance (Risk Management) can assist the insured and insurers to reduce costs and mitigate new risks by deploying some of these commercially viable technology and solutions in Singapore.