Insurance Modernization Fueled by Rise of Insurtechs

The recent rise of insurtechs has spurred modernization in the fundamentals of insurance, including policy creation, underwriting, and claims management. Insurtechs, such as Hippo and Lemonade, have implemented AI and data analytics to provide quick and accurate quotes to their customers while also decreasing their own operating costs. Such innovation has disrupted the traditional insurance industry and has helped alter underlying business models of legacy companies, forcing them to invest heavily in insurtech technology to remain competitive. Hippo, which promotes savings of up to 25% on home insurance, offers customer quotes in less than 60 seconds and also provides complimentary smart home sensor kits to all policyholders. These kits include a two-sensor smart home monitoring system and premium discounts for helping to prevent common risks from fire, water damage, and break-ins.