Insurance refers to the equitable transfer of loss from one party to another in exchange for payment (premium): Business communication Course Work, UOP, UK

DEVELOPMENT IN THE INSURANCE SECTOR                                                                                                                 

Insurance refers to the equitable transfer of loss from one party to another in exchange for payment ( premium ). Some of the developments in insurance include; Insurtech, micro insurance, and Banc assurance. It is regulated by the Insurance regulatory authority.

Trends in the insurance sector.
Digitalization

This is the use of technology for example computers and the internet in delivering insurance services and products.
Insurance companies globally and locally are investing in different technologies such as artificial intelligence to improve on their services. This has created efficiency in the insurance companies. These innovations have revolutionized various aspects of the insurance sector, ranging from underwriting and claims processing to customer engagement and risk management.

Insurance

This is the use of technology in insurance transactions and processes, it works by using technology such as data analysis and artificial intelligence. Insurtech allows products to be priced more competitively.
⦁  It’s used more efficiently to process claims, evaluate risks, process contracts, or underwrite policies.
⦁  It aims at making the current insurance model more efficient.
⦁  Insurtech is exploring avenues that large insurance firms have less incentive to exploit eg ultra-customized policies (collecting real term customer data and creating policy), social insurance, and using streams of data from internet devices to dynamically price premiums according to observed behavior.

Importance of Insurtech

⦁ Enhances customer experience. Here customers are more engaged in selecting there financial benefits provided by the insurance policy by making informed decisions and getting personalized services at their own comfort from any way through online dealings.
⦁ Promotes efficiency. This is in terms of making research and accessing information about client’s data and many more which is made easier and faster.
⦁ Insurtech emphasizes the individuality if their clients, here they use technology to gather information about individual clients and understand their true needs which improves pricing but delivers more reliable, consistent coverage based on historical data.
⦁    Improves flexibility. It gives separate coverage for specific need over a specific duration which is customized, short term or transferable plans.