What Is Insurtech and How Is It Reshaping Insurance? | Boost

With outdated operational systems, analog processes, and poor customer experiences, the traditional insurance industry was ripe for disruption and innovation. 

Enter insurtech, the multi-billion dollar industry that is changing the insurance world. 

What Is Insurtech?

The term “Insurtech” combines the words “insurance” and “technology,” and has multiple uses in the industry. “Insurtech” can be used to describe the innovative technology developed to improve the current insurance model, the companies that create that insurance technology, or tech-focused companies that sell insurance. 

How Is Insurtech Reshaping Insurance?

Insurance technology, and the companies that sell and create that technology, are making waves in the insurance world. By innovating on an outdated process and making insurance simpler and more accessible for consumers, insurtech has tapped into a healthy stream of revenue that was formerly monopolized by legacy insurance carriers. In 2021, the global insurtech market size reached $3.85 billion and is expected to reach $5.45 billion by the end of 2022. 

Insurtech offers simple, efficient, digital solutions that promote consumer ease and confidence, increasing their likelihood not only to convert but to renew their policies. 

In the past, complex, difficult-to-navigate, and slow insurance buying processes were a barrier to both insurance sales rates and post-sale customer satisfaction. If a customer wanted to make a change to their policy, they would need to call their provider and wait on hold until a rep could help them. When a customer filed a claim, they would have to wait weeks to receive a physical check in the mail.