How InsureTechs Are Changing the Insurance World As We Know

The insurance industry is notorious for being behind the curve when it comes to keeping up with the times. There's a lot of "that's how it's always been done" methodology even when data doesn't support specific guidelines or processes. These outdated practices cause-not only frustration for consumers-but frustration among agents and many of those within the insurance industry as well.

Enter the InsureTech. These companies question the "that's how it's always been done" model, underwriting guidelines, and processes. They are using data and Artificial Intelligence to underwrite policies, process claims, and service policies. InsureTechs leverage technology to:

·    Reduce the cost of insurance – The access to data and AI reduces employee costs and thus can reduce the end cost to the consumer.

·    Improve the ease of all processes – Quotes, services, and claims are simplified, allowing quicker processing and less room for human error.

·    Better meet customers' changing needs – Customers' needs evolve far quicker than the insurance industry can keep up with. The lag behind ridesharing and home-sharing is a great example of this – several companies still don't offer this in Kansas… InsureTechs can adapt more quickly to these changes.

·    Reduce Insurance Fraud – by leveraging data and AI, the opportunity to falsify applications and commit insurance fraud is reduced. According to the FBI, there is over $40 billion paid out in fraudulent insurance claims (non-medical related) each year. This trickles back to the consumers and costs the average family between $400 and-700 annually.*

This all said, with change comes skepticism. Openly is not the first InsureTech we have considered, but it is the first InsureTech we have felt comfortable moving forward with. Openly was founded by C-Level executives with years of experience in the insurance industry. Start-up funding came from Gradient Ventures (Google's venture fund) and other reputable venture capitalists. The biggest selling point for us was the positive chatter from other agencies across the industry. Those who on-boarded early with Openly have had extremely positive things to say.

To date, our experience has been great. They share our value of timely and effective communication, quick processes, and customer service above all else! They currently only write homes and have an appetite for higher-end homes and consumers with good to great insurance/consumer reports. Auto options are in talks for next year!

For more information or a free quote, please reach out to us at service@curains.com or 785-370-0722.