Insurtech or insurance technology certainly still feels foreign to most people. At first glance, insurtech reminds one of financial innovations, namely fintech (financial technology).
Not without reason, insurtech is one of the areas of development from fintech that has penetrated into the insurance industry. Just as fintech disrupts banking and financial services, insurtech has the potential to do the same in the insurance sector.
On the other hand, insurtech has great opportunities as a future solution for the insurance industry. So what exactly is insurtech and how far is its development and convenience? Check more in the following article.
What is Insurance Technology (Insurtech)?
Insurtech or insurance technology is a collaboration between insurance and digital technology supported by a fintech component. In short, insurtech is insurance that uses technology to improve operational processes and the insurance industry as a whole so that people can get insurance more easily and quickly.
The presence of insurtech is expected to overcome insurance problems that have been encountered so far, starting from difficulties in obtaining information, complicated claims processes, and premiums that are difficult for the public to reach.
Reported by Breeze, the emergence of insurtech began in 2010 through the presence of Friendsurance. As an insurtech pioneer, Friendsurance had the initial idea to create a small group-inspired insurance community through peer-to-peer (P2P) methods.
Quoting IDN Times, insurtech uses a number of supporting technologies ranging from AI, Machine Learning, drones, blockchain technology, IoT, GPS, and mobile applications. The application of IoT and GPS systems enables insurtech companies to determine car speed, location, and driving patterns to obtain accident analysis and improve traffic safety, which are important insights for the insurance industry.
Development of Insurtech in Indonesia
Development of Insurtech in Indonesia
Insurtech is one of the strategies to develop and expand insurance products which are still low in Indonesia. On one occasion, General Chair of the Indonesian Life Insurance Association (AAJI) Hendrisman Rahim said that insurance companies must continue to develop and adapt to developments in digital technology in order to get closer and widen the marketing of insurance products to the public.
The startup boom has contributed to the emergence of a number of insurtech companies in Indonesia which were then regulated by OJK Regulation Number 13/POJK.02/2018 concerning Digital Financial Innovation. In its implementation, insurtech requires digital stamps (e-stamp) and e-KTP data. Even though it is relatively new, the emergence of this rule is a breath of fresh air to encourage easy access to insurance for the Indonesian people.
Nevertheless, the development of insurtech still faces a number of challenges, ranging from sizable capital and investment, public education, internet connectivity, to the demographics of Indonesia which has many islands and people. The popularity of e-commerce was then adopted into the form of insurtech through the emergence of a number of e-commerce insurance companies that make it easier for potential customers to compare and choose the insurance that suits their needs.
Insurtech e-commerce comes with a series of features and types of insurance, ranging from life, health, property, travel, vehicle and other insurance. Prospective customers only need to fill in data and then compare insurance providers that offer benefits according to their individual needs.
After deciding to choose a particular insurance, later the customer can make a payment and the policy will be sent directly via email. Payment options for insurance purchases and payments are also available, ranging from bank transfers, virtual account transfers, to through fintech providers.
Read more : Helios Hadirkan Solusi Masalah TI Perusahaan
Convenience Provided by Insurtech
Ease of Insurtech in Indonesia
As is known, currently some conventional insurance industry players still apply the old way for consulting purposes to claims. Starting from the need for face-to-face and consulting, the difficult and slow claim process, paperwork that uses paper and manual processes, to the long buyer process which is an obstacle.
The presence of insurtech is the right solution that can cut the complicated process of getting insurance through conventional brokers. Just as fintech has disrupted the banking sector to reach non-bank people in the regions, it is believed that insurtech has also changed the insurance industry through a series of conveniences for customers. Quoting my Finansialku, here are three conveniences provided by insurtech.
Facilitate Institutional and Customer Interactions
Insurtech will make it easier for many prospective customers to have insurance. Prospective insurance customers do not have to come to the insurance office, but only need to receive calls from insurance agents.
Cashless Society
Customers no longer need to bother carrying or transferring money to register or pay insurance premiums. Insurtech can also reduce the risk of fraud by irresponsible parties. Apart from that, you can also supervise daily transactions for insurance policies through insurtech.
More Practical and Fast Process
The process of registration, claims and complaints when there is a problem with an insurance policy becomes more practical and faster because everything is done digitally. Prospective customers from various walks of life can now study, compare, and analyze various insurance offers according to their needs. Insurance companies can also maximize transaction security to the confidentiality of customer data.
Solutions to Meet Insurtech Needs
The development of insurtech has contributed to the rapid growth of the insurance industry. According to the “Insurtech Ecosystem in Indonesia Report 2021” by DailySocial, the insurtech platform has also contributed to an increase in insurance premiums up to IDR 811.71 billion in 2020. Insurtech as a seamless, affordable, easy, integrated, and fast solution is proven to accelerate the adoption of insurance by the public.
To support digital transformation in the insurance industry, Helios presents solutions from Samsung and Nutanix with guaranteed information security and speed according to insurtech requirements. Following are the solutions offered by Helios to meet the needs of the insurtech industry.
Samsung Active Tab 3
Insurance agents need powerful devices to accommodate registration to policy claims quickly. Samsung Active Tab 3 with the Samsung DeX feature will facilitate multitasking with other devices to support agent performance.
To support the paperless process, digital documents can also be signed directly using the S-pen. Face recognition and fingerprint features will provide security for devices when collecting and storing customer data.
Device security from potential damage due to weather changes and agent mobility can be maintained thanks to the water resistance and anti-shock features. That way, companies don’t have to worry about the high mobility of insurance agents in the field.
Nutanix HCI
The process of submitting requests to claims certainly requires fast, precise, and safe data transfer solutions. Nutanix presents Hyperconverged Infrastructure technology with an efficient data center infrastructure system in one device to ensure data transfer speeds with the following four conveniences.
- Easier scalability of data center systems for head office and branch offices.
- Ease of managing data center systems.
- Maintenance of data center systems becomes easier.
- Maximize system performance and availability.
Read more : Kinerja Lebih Cepat dengan Nutanix HCI
Helios as an IT Solutions Provider for the Insurance Industry in Indonesia
Get the ease of submitting insurance claims seamlessly through an integrated ecosystem through a series of solutions from Helios Informatika Nusantara (Helios). Helios as the authorized partner of Samsung Active Tab 3 and Nutanix HCI will help the insurance industry adapt to the development of insurtech technology.
Helios as an IT solution provider will help you from the consultation, deployment, management, to after-sales support to make it easier for insurance customers. Supported by an experienced and certified IT team, Helios will ensure you avoid the trial and error process when implementing a solution.
Interested in insurtech solutions from Helios? Immediately contact [email protected] for more information.
Penulis: Ervina Anggraini
Content Writer CTI Group
