Life insurance dates back all the way to ancient times, and it’s as vital today as it ever was. But unlike ancient times, today we have several related fields that didn’t exist until relatively recently: insurtech and fintech. What are these new industries? How are they different from each other? And how do they affect insurance?
Let’s dive in.
Insurtech is the use of technology and modern innovations to get the most out of the current insurance model. The industry is based on the belief that the insurance industry has operated on the same model for hundreds of years, and it’s time for a change.
As such, insurtech companies try to make the most of digital means, offer super-customized policies, appealing to current trends like social good and wellness, pricing premiums based on observed behavior on IoT devices, and more.
Fintech, a combination of the words “financial” and “tech,” is an industry that tries to improve, automate, and digitize financial services. Fintech companies seek to help others (personal and commercial) manage their financial operations through technology. Of course, each company has its own unique selling point regarding how its technology is better than others.
Despite its name implying that fintech is purely for the finance industry, that’s not the case at all. While it may have started out that way, today the industry has expanded to include more sectors, including education, non-profit, cryptocurrency, and more. It’s also become much more consumer-centric and services individuals, not just companies.
How Insurance is Changing with Insurtech & Fintech
It’s easy to see how insurtech is changing the traditional insurance model — that’s the purpose of the industry! Fintech, though not specifically insurance-related, has been affecting traditional insurance companies by bringing swifter digital tools to the table. These tools, which many banks have already adopted or are starting to adopt, can help lower costs and alleviate dependency. on legacy systems.
What would behoove traditional insurance companies is not to view insurtech and fintech as competitors, but rather to view them as enhancements and adopt their solutions. There are so many solutions, traditional insurance companies will have no problem finding new and exciting innovations. Choosing the one that’s right for each company can be trickier, but that’s what business strategists are for.
Sproutt’s Disruption of the Traditional Insurance Model
Sproutt is an example of an insurtech company. While we are NOT an insurance provider or seller, we do help consumers find the best policies and rates. We utilize digital platforms and technology so that consumers can access our site 24/7 and get an aggregated list of policies on the spot.
And unlike traditional insurance companies, which are very statistics/bottom-line-centric, Sproutt focuses on quality of life (QL) and how boosting QL can impact your life insurance rates, and of course, your life at large.
Sproutt insurance advisors are available to help determine what kind of life insurance is best for each situation. Simply answer a few questions and we will find the best-value plan for your lifestyle, needs and budget.