In the history of Insurance, the only communication between the agent and the client happens after something bad happens, such as a car accident or a home robbery. Now, with new technology emerging, the industry might see a change in its model. Instead of only interacting with their clients when there is a claim, insurance companies of the future will help their clients be safer drivers, homeowners, etc., and bring down the number of claims altogether. With products designed to make policyholders less risky, insurtech firms are set to change the way we perceive the standard insurance company. This has led to big insurance companies investing large sums of money in small insurtech start-ups.

One of the most exciting new technologies coming out is Telematics, which is set to revolutionize the auto insurance industry. Telematics are black boxes that are placed inside of cars to monitor the good and bad habits of the driver. The insurer can access the telematics and base the prices of their policies on the riskiness of each specific driver. Currently, auto insurers base the price of premiums on factors like credit score, accident history, and even marital status. Now, they will be able to get a more specific read on the riskiness of their clients. This is just one example of an insurtech product that is creating a new future for the world of insurance.

Another product that is getting a lot of attention from the big investors is a blockchain for marine insurance platforms. This is basically a shared ledger that protects vessels from being hijacked by pirates. Here is how it works: If you are driving a ship into an area where pirate activity has recently occurred, the ledger will notify you, so that you can turn the ship around or call for assistance. Eliminating the threat of piracy is better than filing an insurance claim after the ship is already gone, which is why investors are making moves to put this kind of technology out into the market.

These new products, along with many others, will change the insurance industry forever. Not only will it bring down the number of claims, but it will also make policies cheaper altogether. After all, all insurance services are based on risk. So, if insurance companies have proof that their covered cars, boats, etc. are not high liabilities, then they can provide their customers with lower rates.

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