For a long time, the insurance industry has slept on the conservative bed very comfortably, immune to the vagaries of the technological innovations that have taken multiple industries by storm over the last few decades.
However, the trend is gradually changing as more and more Insuretech companies are pushing boundaries to change this trend.
Insuretech companies like German based Friendsurance is already disrupting the insurance industry having created a peer-to-peer model which connects groups of customers to create their own risk pool to settle small claims.
If their connections remain claims free during the year, they can retrieve as much as 40% of their premiums.
Insurers are now deploying technology to have a more accurate representation of their clients.
For example, car insurance: multiple vehicle insurers are now incorporating apps which use GPS and smartphone sensor technology to track driving behaviour including speeding, taking corners too hard or even just slamming on the brakes to aggressively.