The insurance industry is valued at no less than five trillion dollars. Today, the business is going through a rapid modernization process. Once on firm ground, the enterprise giants now face competition from new players.
Insurtechs are insurance startups that operate without brokers. They deal directly with their customers through mobile apps or websites. Technology and user experience are big focuses in 2020.
Improving Wide Area Surveying
When a natural disaster occurs, companies assess the affected locations to settle claims. As it takes a lot of work, people can sometimes wait a long time before receiving their due share. Industry giants like AGCS have started using drones to survey large areas, which helped speed up the claims process.
The practice is becoming more commonplace. Insurers are using drones for risk engineering, insurance pricing, and monitoring large farms. They can also avoid unnecessary employee endangerment in potentially unsafe inspections. Yet, issues like operation training, data privacy, and possible hacking still need further addressing.
To Broker or Not to Broker?
It might seem insurtechs would only disrupt the operation of long-established insurance companies. Yet, it turns out some are focused on the exact opposite.
Many startups are working together with older carriers. Streamlining and improving their internal processes, these “enabler” enterprises help brokers stay relevant. With that, traditional insurers keep growing in the business.
Dealing with established carriers can be more pleasant for many people. Brokers can help you through the process of choosing the best possible packages and guide you through the details of the policies.
Sometimes, it’s better to have someone you know on the other end of the line when you need to make an insurance claim. After all, when you need to call your insurer, the last thing you want is more stress.
Says Mo Jarrah of BrokerLink, an insurance brokerage that scours the market for the best car and motorcycle insurance coverage in Alberta: “Insurance can be really complicated! Going with a broker means you have someone who takes the time to explain everything in depth. We get to know you and your needs and personalize a plan just for you.”
So, What to Choose?
Smaller startups can be great if you know what you want and want to get more “hands-on” with your insurance. More traditional brokers are also a great option. If you prefer to delegate this and enjoy safety without worrying about every detail, consider a broker. Insurance is, after all, peace of mind.