How does data security and privacy hinder the growth of Insurtech?
by SMEBOOK (admin) · February 3, 2021
- Insurance is a highly regulated industry with many layers of jurisdictional legal baggage to deal with. As such, the major companies have survived this long by being incredibly cautious, which has made them shy away from working with any startups—let alone startups in their own, very stable industry.
- Insurtech is the use of technology innovations designed to make the current insurance model more efficient.By using technology such as data analysis and AI, insurtech allows products to be priced more competitively.There are headwinds for insurtechs, notably regulation issues and a reluctance of established insurers to work with them.
- Insurtech startups still require the help of traditional insurers to handle underwriting and manage catastrophic risk. That said, as more insurtech startups garner consumer interest with a refined model and a user-friendly approach, they may find that the incumbent players warm to the idea of insurtech and become interested in buying up some of the innovations.
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