Technology has achieved remarkable growth over the past few years. In the current time, this technological advancement is continuously helping the industries think out of the box and manage operations differently, more creatively, and efficiently.
Like many other fields, the Insurance industry is going through a continuous innovation. The technological revolution is changing insurance industry rapidly. But strict policies from the government is making it difficult for the businesses to grow and thrive.
Because of this, many professionals from the Insurance industry lack awareness about insurance technology and how it can make their industry better in the future.
What is InsurTech?
InsurTech means insurance technology. This abbreviation points to the tech, which is designed and created to make the insurance companies better. This tech can help insurance companies can manage their operations more effectively. InsurTech can also keep the Insurance industry adopt the newest innovations in big data, artificial intelligence, and more.
The history of this revolution in insurance goes back to 2010. Friendship, a berlin origin company, was the first to use this technology in the insurance industry. The idea at the core of Friendship was a peer-to-peer insurance community. This idea got off because of a few people who wanted to give emotional support to people who recently met with a tragedy or loss.
The insurance company grew enormously over the past couple of years. There has been extensive demand for advanced technologies and developers who create them. Customers of today want more speed, adaptability, and transparency. CB Insights reported an increase in the InsurTech industry. The estimated increase in that investment is from $348 million to 4.15 billion in 2018.
Most new customers assume that getting insurance is a lengthy and risky step. And there are a few reasons why!
- Deal with aggressive distributors who are motivated by commissions rather than the best interests of their customers
- The jargon or lingo written on an insurance document is almost impossible for the average person to understand.
- Spend weeks (if not months) on the process and make sure coverage is denied anyway.
- The process is quite lengthy and often takes months to complete.
People don’t just delay meeting their coverage needs. They avoid buying insurance, period.
InsurTech is helping change that in the industry.
- Through InsurTech, the coverage gets more accessible
- It also a cost-effective method for both companies and policyholders
- Accelerate coverage publishing.
- The coverage publishing process moves more quickly
In today’s time, you can smoothly go through an online survey from your smartphone or desktop. You can also compare all the possible options available before buying. The influence of InsurTech is present everywhere in the insurance industry today.
The ease which InsurTech provides to individuals and organizations is enormous. They can now go through insurance products and services quickly. This eliminates the lengthy process of buying insurance, which the customers face in the past. Customers today have an enormous amount of options to choose from. And they can also tweak the insurance coverage according to their requirements.
Because of the digital revolution, it is now possible for customers to use applications, automated tracking devices, wearables, and more. Smaller companies can purchase different kinds of coverage at once. And, it’s now super easy to fill in an application in minutes.
What is the home emergency cover?
No homeowner wants to spend frequently spend dollars on repairs and maintenance every other day. The home emergency cover covers events such as electric failures, drainage failures, and more. If you need to get something fixed or repaired, a worker will visit and resolve the issue. Your insurance company pays the money for all of the repair work. This replaces the old home insurance policy, which only covered damage to your home.
What Does This Home Emergency Insurance Covers?
Your home emergency policy will vary greatly depending on the amount you pay and the level of coverage offered. Depending on what you include in your policy, your home emergency response may protect you from some or all of the following:
The home emergency policy varies according to the amount you will be paying and the level of coverage offered. What you include in the policy decides what kinds of emergency damages will be covered.
Boiler mishap
- Plumbing issues
- Shortage of hot water
- Central heating breakdown
- Pipe leakage
- Drain blockage
- Electrical issues
- Pest control
- Roof damage by weather
- Home security issues
Apart from paying for maintenance, some policies have alternative accommodation if you leave home in an emergency.
Homeowners might be excited to know they can claim completely free grants to improve their heating system under ECO home scheme. Government backed central heating grant is now available for the eligible homeowners.
Ensure that your insurance company knows how fast you can respond in an emergency. There is a 24-hour helpline in most cases, but that doesn’t mean we can guarantee that the seller will be available 24 hours a day.
There are also a few things which are not covered in this emergency policy.
There are a few exclusions in every home emergency coverage. You could get some limitations on repairs and labors costs. There is also a limit of the number of phone calls you can make for complaints annually. Some other common exclusion are.
- You cannot make a complaint for at least 14 days or more after signing up the policy
- Any damaged caused by sludge in the pipeline, boiler or radiator
- You will not get the coverage if an emergency occurs after the house is vacant for 30 days or more.
- Overhauled boilers which aren’t repaired since one year
- Problems because of low maintenance.
What counts as an emergency?
Each insurer has a different definition of “emergency,” but in general, an emergency is one or more of the following:
- Permanent damage to your house
- Make your house uninhabitable.
- Risks to well-being and health
- Endanger your home
Loss of heating is considered an emergency, as this is likely to mean a complete loss of service rather than a failure, but weak water pressure is not.
Home appliances are not covered in the coverage too. And, homeowners need to pay themselves for any maintenance and repairs.
How InsurTech is transforming the home emergency Insurance Business
New innovative technology features will transform the way traditional insurers think about the industry. That’s why so many new and existing insurers are benefiting from the InsurTech for the following tasks:
- Enhance and speedup the decision making process
- Giving customers a more quality experience
- Explore new horizons for advanced analysis and innovation
- This improves the operational efficiency of the organization and reduces cost
New innovations in the insurance industry provide solutions and minimize the gap between features and products. These latest innovations also make the value chain process more seamless. For instance:
- We are going through analytics applications for risk minimization and policymaking.
- Brokers can sell short- term insurance services through any distribution channel
- Development of artificial intelligence and data science for fraud detection.
- Artificial vision with geospatial imaging solutions to improve the quality and efficiency of your subscription.
All these innovations help in the data exchanging in an advanced and efficient way.