Driving the Waves of Insurtech


This put up is a part of a sequence sponsored by AgentSync.

The evolution of expertise in any business follows an identical sample. Transformation doesn’t occur in a single day. Slightly, we see a development from infancy to maturity in the best way an business makes use of the tech at its disposal. On the identical time, the precise capabilities of expertise preserve progressing in order that what was “innovative” in the future quickly turns into normal, and there’s room for the subsequent innovation to take its spot as the most recent and biggest.

Based on AgentSync’s Co-Founder and CEO Niji Sabharwal, the insurance coverage business is at an inflection level. As the most important gamers within the business have reached a reasonable, baseline degree of digitization (expedited by the need of a extra distributed, distant workforce because of COVID-19), the subsequent wave of insurance coverage expertise (insurtech) can start to take maintain. We’ve seen this development occur extra shortly in different industries – hospitality is one instance – as insurance coverage expertise has up to now simply scratched the floor of what’s potential.

There are a number of causes insurance coverage lags industries like hospitality when it comes to tech adoption.

These embrace:

  • The well-established nature of the insurance coverage business (it has a historical past courting again hundreds of years, in spite of everything!).
  • The fragmented nature of the business and the way it’s regulated, totally on a state-by-state foundation.
  • A scarcity of standardization in best-practices throughout the business: There are a nearly-infinite variety of methods of “doing issues” so long as the tip result’s that they’re completed in compliance with laws.
  • The growing old (and shrinking) inhabitants of the insurance coverage business workforce, together with expertise and information gaps that seem as a whole era of business specialists retire.

However, the instances they’re a’changin’! At the very least from what we are able to see from the vantage level of a fast-growing insurtech with an equal deal with making certain easy compliance for insurance coverage carriers, companies, and MGAs and creating a contemporary, digital expertise to satisfy the wants of the rising insurance coverage workforce.

We sat down with our Co-Founder and CEO, Niji Sabharwal to debate the waves of insurance coverage expertise, the place the business is correct now, and the place it might be headed.

Wave No. 1: Digitizing current processes

“The primary wave of insurtech is generally about digitizing the processes that exist already. There are a number of causes right here.

Firstly, digital processes can construct in redundancies and oversight to make it simpler for brand spanking new and inexperienced customers to combine into the method.

Second, primary features in effectivity imply having the ability to do the identical processes with a leaner employees if crucial.

Third, a digitized insurance coverage course of, from underwriting to claims paying, may be repeated even throughout carriers, companies, or MGAs with much less have to faucet into inner legacy information bases.”


There are millions of carriers, companies, and MGAs, and there’s not a single complete course of or system for a way everybody does enterprise. The insurance coverage business is extremely regulated – but notoriously inconsistent in these laws from state to state, that means every certainly one of these hundreds of insurance coverage organizations are following completely different guidelines and creating distinctive processes to perform the identical objectives.

As Niji factors out, merely digitizing current insurance coverage business processes has been transformative. For one factor, adopting digital processes inherently standardizes the best way a company runs. Day by day duties can go from “the best way Martha has completed it for 25 years however nobody is aware of why” to a standardized and repeatable course of that anybody, even a brand new worker, can comply with and do. This turns into much more important with the information that the median age of insurance coverage brokers is sort of 60, and the business faces a scarcity of millenial and Gen Z expertise.

“Now we have already began to see important adjustments to the business simply by digitizing present processes, by exchanging faxed papers for signature to emailed pdfs and click-button agreements.

If taking the prevailing course of and placing it into a pc can have such an impact, simply think about what the second wave of insurance coverage expertise will appear like.”


Wave No. 2: New use instances, transformative improvements for digital insurance coverage functions

Because the 2022 InsureTech Join (ITC) convention emphasised, insurance coverage expertise corporations are largely prepared to start out shifting previous the primary wave. But, since that is an rising period, understanding its implications is to enter a realm of hypothesis, the place we’re casting out into the longer term.

“For a second wave of insurtech, issues begin to actually get attention-grabbing. To hazard a guess, that is the place the business may even see and really feel the influence of synthetic intelligence (AI). Some insurtech corporations are already doing this, utilizing large information units which might be publicly obtainable or purchasable to coach AI fashions and automate issues like underwriting and contract advice.”


Insurance coverage corporations utilizing enterprise intelligence as a part of an algorithm can act like a big service however with a small, environment friendly workforce. Once more, this forecasting could appear tremendous future-forward to insurance coverage corporations that also depend on guide processes, however early adopters aren’t removed from realizing the advantages of AI, automation, and utility programming interfaces (APIs, that are like a coded doorway into an app).

“The second wave of insurtech will doubtless contain discovering new use instances for current applied sciences, experimenting, and realizing that what can work with 10,000 policyholders may also work with 1 million policyholders.

Growing scalable tech and becoming a member of instruments collectively by ‘chaining’ APIs will make all of those options simpler and environment friendly.”


Typically, the enterprise fashions inside a line of authority aren’t too removed from one another, no less than inside the identical state or territory. Each life insurance coverage service or property and casualty service working in Ohio has the identical necessities for solvency and reserves. They’re typically working off the identical information for underwriting and constructing new merchandise. And, relying on the state, these companies can also be set to comparable charges, or, as within the case of Connecticut well being insurers, carriers could also be held to the identical ceiling for revenue margins. Underneath these conventional laws and information units, enterprise fashions essentially look very comparable.

Because of this, a lot of the enterprise advertising and marketing – no less than presently – within the insurance coverage sphere is about differentiating a enterprise due to its branding, or its inner tradition, or within the non-insurance providers they provide along with their core product. However primarily, lots of the underlying potentialities of insurance coverage stay the identical. As Niji says, although, insurtech’s second wave will doubtless begin to change this, giving corporations a special edge primarily based on how they construct their contracts and use the information obtainable to them.

“The second wave of insurtech will doubtless be a protracted course of due to the fragmented nature of insurance coverage.It’s troublesome to construct consensus throughout so many corporations which might be regulated by so many various authorities, and constructing one thing lean and complete will not be a simple proposition.”


But, imagining the variety of areas that might be impacted by rising tech is an attention-grabbing proposition. Onboarding, commissions, compliance … there are such a lot of potentialities.

Wave No. 3: Mega insurance coverage?

Since insurtechs are barely getting into what we would think about the second section of innovation, casting projections to this point into the way forward for a 3rd wave is de facto only a shot at nighttime. Who is aware of the place insurance coverage expertise will take us?

One hypothesis is perhaps that, as soon as chained APIs – a number of functions, linked collectively and feeding info to one another in actual time – grow to be widespread throughout completely different corporations or in several traces of enterprise, there could also be some bigger mergers and acquisitions, with conventional long-term carriers vacuuming up smaller insurtechs. It appears doubtless that smaller items of expertise will be a part of collectively to make a number of monolithic business titans.

Alternatively, it might be the alternative, the place smaller, extra aggressive corporations have the instruments to compete at a excessive degree whereas remaining tight and nimble.

Regardless, to some extent we’ve the view {that a} rising tide lifts all boats: The insurance coverage business as a complete will proceed to learn from the technological improvements and digital transformations of its processes. At the same time as we regulate “Massive Knowledge” and keep cautious of defending susceptible populations from digital disruption that poses hurt, we are able to keep excited concerning the methods insurtechs can enhance the business each for many who work in insurance coverage and its shoppers.

In case you’re excited to trip these waves with us, take a look at how AgentSync Handle might help you flip a roadblock into an asset with our insurance coverage license compliance system. We’re right here for you when you’re simply beginning to automate once-manual processes, or when you’re able to think about the way forward for Wave 3 collectively.



Leave a Comment