When we talk about Fintech app development, most of the focus is stolen by the payment apps and banking apps. Although Fintech is not just limited to this! There are many other aspects of the finance industry that remain unexplored but are equally affected by technology as the payments industry.
Trading apps and insurance are those aspects that have changed the face of the finance industry with the help of technology.
Statistics suggest that the market size of the global insurance industry was around 8.8 billion in 2020 and will be around 20.6 billion by 2026. Plus, there have been hefty fundings made in the insurtechs lately. For example, the CBInsights reports suggest that the insuretechs have raised $2.1 billion in the last quarter of 2020.
These are very big numbers, and they are proof that the insurance industry is a part of the Digital Transformation in Fintech sector. Here are some key ways in which the insurance industry is changing!
The Speed of Application Process
No matter which department it is, the wave of online work management has made it very easy for all of us to carry out our jobs. If we discuss the insurance sector, the claim application that would take months to process can be done within a matter of hours and even minutes today. So, what makes this possible?
The advent of AI, ML, and Big Data has made Fintech App development so strong and fast that one can file a claim from anywhere and get the verdict within minutes. Strong backend technologies analyze the information using fast and effective AI algorithms. Based on the comprehensive calculations and analysis, the result can be deduced faster, and firms can serve more people in less time. In contrast, if someone wants to get a new insurance policy, they can simply do it via the app or the merchant’s official website.
Hypatos is a firm that uses Deep Learning for processing documents quickly. It can come in handy in claim processing. Lemonade is another excellent example of AI-Powered claim processing.
Customized Insurance Plans
Let us take the example of vehicle insurance for a moment! There are two types of vehicle insurance available, namely comprehensive and third-party insurance. Now, these policies not much customizable. However, they have everything that one needs to be covered in insurance. But, what if someone has some specific needs?
The concept of customized insurance plans is not widely accepted yet, but it has the potential for Digital Transformation in Fintech sector. How?
As the use of smart devices is on the rise like smartphones, smartwatches, etc. These are the key touchpoints to get access to user data. Moreover, IoT devices are also used in various industries.
The whole abstract of this is that with health data from customer devices, insurance firms can curate customized health insurance plans for their customers at personalized pricing. Plus, with data collected from IoT devices (for example, an IoT sensor connected to the user vehicle), companies can create customized vehicle insurance policies for their customers. Fintech App development firms will have a core role to play in this.
Read more : Addressing Threats of Digital Fintech Apps
Underwriting is one of the most tricky and time-consuming parts of the insurance industry. The basic function of the underwriting process is to assess the risk and arrive at a suitable quote for the customer. Today, this process takes hours to complete as there are various aspects to analyze, like the person’s age, health, hobbies, occupation, gender, driving record, medical history, and many others. As the list is too long, it takes forever to decide on a quote.
But, not anymore! With the introduction of AI and Machine Learning, firms can entirely automate this process to reduce human effort and time. The reliance on AI will offer you:
- Minimal losses
- Precise insurance quotes
- Faster payouts
And improved work efficiency!
Automatic Payments and Credits
The providers of the Fintech App Development Services have really outdone themselves in their field. The best example is the auto-deduction of payments from your connected bank accounts. It becomes difficult to keep track of everything in the current fast-moving time, but technology is here to help.
With technology-backed applications, one does not has to go through the hectic procedure of going to the insurer to pay the premium. Instead, it can be done right from the user’s phone or laptop. Even better, these deductions can also be automated to ensure timely payment. Many insurance providers leverage this facility.
Faster and Digitized Documentation
No matter what type of insurance it is, documentation is a must for every insurance provider firm. Earlier, there were piles of papers that need to be verified before one could accept someone’s insurance policy. But not today, today there are a variety of methods via which the insurer can easily and quickly authenticate the documents provided by the customers.
One of the best examples of this is WorkFusion. The firm offers an AI platform named Intelligent Automation Cloud that helps in:
- Digitizing new paper documents using machine vision and Optical Character Recognition (OCR). Further, it also uses robotic process automation (RPA) to organize these documents properly.
- Access client’s data within seconds and identify any type of discrepancy instantly.
The demand for Fintech App Development Services providers is on the rise right now. As more and more companies are investing in ways to enhance their insurance provision process, most of the work is catered to Fintech App Development Services providers.
As of now, the adoption is a bit slow, but once the competition elevates, the Digital Transformation in Fintech sector will be speedy and massive. Technologies like AI, ML, Deep Learning, etc., will surely enhance the user experience.