InsurTech: Refreshingly Different – Like Lemonade!
Désirée U. Klingler · 2018
This chapter reviews emerging models and innovations impacting the insurance sector and their somewhat disruptive potential, if any, on the industry. To understand the impact and the degree of digitization and/or disruption across the insurance sector, it also reviews the traditional insurance value chain and its five key elements: product management, sales and distribution, underwriting and risk management, claims management, and customer service. With the evolution of new technologies such as artificial intelligence (AI), blockchain, distributed ledger technologies (DTL), and data mining (DM), so-called InsurTechs have started to re-engineer these five elements and combine them in ways that make buying, claiming, and managing insurance intuitive and relevant for customers. The peer-to-peer (P2P) insurance model is a "refreshingly different" approach to insuring because conflict of interest during the claims process are minimized as the insurance provider is only paid from an agreed fee or commission and is therefore incentivized to pay claims.