07 Mar INSURTECH EXPERT WITNESS: INSURETECH EXPLAINED
Ask an insurtech expert witness or consultant and they’ll tell you: The field continues to evolve, and grow by leaps and bounds, with each passing day. At the same time, it still remains unfamiliar to many lay readers. Following, you’ll find a glossary of common terms that insurtech expert witness providers have shared as a potential starting point for learning more about the industry and surrounding apps, technology, and cloud solutions. Note: Definitions and concepts may vary by individual provider.
Insurtech – A term that combines the words insurance and technology, referring to the use of technology to improve and modernize the insurance industry.
Digital Insurance – Insurance products and services that are offered entirely online, with no face-to-face interaction required.
Usage-Based Insurance – A type of insurance where the premium is based on how often and how well the insured item is used, as insurtech expert witnesses are often asked to weigh in on.
Telematics – The use of telecommunications and informatics to transmit data about a vehicle or driver’s behavior to an insurer, allowing for more personalized and accurate insurance pricing.
Blockchain – A digital ledgering technology that can be used to create a secure and transparent system for tracking insurance policies, claims, and transactions.
Artificial Intelligence (AI) – Computer algorithms and machine learning models that can analyze large amounts of data to identify patterns and make predictions.
Chatbot – An automated software personality and messaging system that uses AI to simulate conversation with users, often used by insurers to answer customer inquiries.
Claims Automation – The use of technology, such as machine learning and AI, to automate the claims process, making it faster and more efficient.
Predictive Analytics – The use of data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data.
API (Application Programming Interface) – A set of tools and protocols for building software applications, used by insurers to connect their systems with third-party software and data providers.
Happily, you don’t have to be an insurtech expert witness or consultant to get your head around these innovations, many of which are quietly reshaping the world of insurance as we speak.