Insurance Technology and its Need

What is insurance?

 Insurance is a process in which a person protects himself against the financial liability of future incidents by paying a fixed amount regularly at the present time. Insurance is usually purchased for the life of the insured, or house, vehicle, or even his medical expenses, but insurance companies also offer insurance policies for other less likely incidents like theft, floods, robbery etc.

What is insurance technology?

With the boom in the field of IT, the World Wide Web has become the platform for all business deals that take place. Various modern insurance technologies have now been introduced in the insurance industry for better access to the terms and conditions of the industry. Insurance technology   has allowed users to get insurance done in their names sans the hassle.

Need for Insurance technology?

1. A policy premium of a certain policy would be different for different people depending on certain factors. If it is a life insurance policy, then the general health of the insured, his or her age, his pre existing diseases if any, the nature of his job, and his present income would determine the premium of the policy. In case of non life insurance, some of the factors considered would be the condition and age of the thing that will be insured, the conditions under which it is used, and the perceived threat to its safety and security. All these factors are quantified, and then used to calculate the premium amount. All these quantifications and the subsequent calculations are done by a specialized professional called an underwriter. With the introduction of insurance technology the process of underwriting is completed online. The calculations done are not only accurate but also take a very short time.

2. Insurance software is used for processing applications, which eliminates the risk of errors while writing data by hand.

3. For life and health insurance policies,medical records are accessed online to cross check and verify applicants' declarations.

3. Vehicle records can be accessed from Motor Vehicles Department online database, and similarly police records can help in verifying criminal antecedents or even parking tickets.

4. The whole process of insuring has been shortened with the use of insurance technology.  Customers can avail all kinds of insurance on line itself and do not need to pay extra charges to an insurance agent.

Insurance is an industry that will continue to grow in the coming years, and the use of insurance technology will increase the convenience of both insurers and insured.