What Does InsureTech Mean?
InsureTech refers to the use of emerging technology by insurance companies. It is a portmanteau formed from the words "insurance" and "technology."
Insuranceopedia Explains InsureTech
Insurance companies standardly use a number of analog tools and older processes to sell and price its products. For instance, actuarial tables price insurance using traditional statistical models that factor in broad demographic features, such as age, sex, and geography. Insurers can, instead, adopt InsureTech solutions that allow them to perform fine-grained analysis and offer premiums based on an individual policyholder's behavioral patterns.
InsureTech often involves adopting emerging financial technology, or FinTech, to reach new customers or improve their offerings to existing ones.