Not all Tech is created equal, Ed Stelzer walks us through the advances of technology driven insurance
This AI computing technology dramatically speeds up and simplifies the process of buying critical insurance, so that new business owners can get started right away. Another example of an InsurTech innovation is what’s known as “ondemand insurance.” Previously, if you wanted to insure a motorcycle or a speedboat that you only use occasionally, you would have to purchase insurance for the entire year, or, minimally, a whole season. Now, with an app available on your phone, there are insurance carriers who off er to insure your car, bike, and even drone specifically for the time you use it. On-demand insurance makes it much less expensive for consumers to own insurance because they’re able to buy the specific protection they need, when they need it. Until recently, this type of insurance was inconceivable. Finally, there’s a new insurance company that began in Israel, called Lemonade, which offers renters’ insurance. It’s not sold through brokers, nor is getting it a timeconsuming process; all it takes is a five-minute application on a smartphone app.
This company also claims to be breaking world records for expediency in paying claims on losses. This can be accomplished today because of advances in technology that are eclipsing the slower, paperdriven methods. But, like any new development, there are downsides as well.
Not all tech is created equal, and sometimes, things don’t go as planned, especially in the early stages. With something as crucial as insurance coverage, hiccups in the technology could potentially be a cause for aggravation. Additionally, there are real privacy concerns that crop up when people’s personal data becomes part of the insurance sales process. For example, there are now insurers who offer discounts to drivers who agree to install monitoring devices on their vehicles that check driving patterns. While this technology may offer deeper insurance discounts, it could also penalize less conscientious drivers.
The information being collected, including data location, is in the hands of the insurance company, for better or for worse. Providers of insurance, like all businesses that handle sensitive, personal information, must use this information ethically. There are also questions cropping up about privacy issues involving social media. Say, for instance, a young man applies for life insurance online, and after answering affirmatively that he lives a healthy lifestyle, he posts pictures on Instagram of his reckless skydiving. Can the insurance company he’s applied to use that information to deny him coverage or raise his premium?
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