InsurTech carries consumer protection risks
Friday, 03 30 2018, Category: Technology, Country: World
Emerging technologies and innovative business models are already disrupting the re/insurance industry and bringing many advantages in terms of product design, risk assessment, cost, and efficiency, but InsurTech may also be increasing the risk of cyber-attacks and excluding lower income and higher risk consumers.
InsurTech is generally considered to provide greater access and better value for low-income and emerging consumers through lower premiums, better client servicing and faster payouts, but its associated risks should not be underestimated.
These risks are becoming more apparent as the industry grows, with the World Insurance Report 2017 listing over 1,000 InsurTech start-ups that currently represent a combined investment of US $2 billion worldwide.