Buzzy insurtechs have raised $3 billion already this year and are touting AI and big data. But the tech could change how policies are written, pricing out risky customers.

Innovation can lead to efficiencies that benefit the masses. But some worry the implementation of new tech in the insurance space may end up meaning those most in need of help get left behind. Startups blending insurance and technology have been boasting that their use of a wider range of data and artificial intelligence-based tools is changing the way the entire industry works, with many hinting it could eventually lead to better underwriting and pricing. And while that may help the expansion of insurance products into more niche areas, some are sounding the alarm about the possibility that pricing will become too sophisticated. Coverage that is more tailored to customers' needs could result in those carrying the highest risk being unable to afford what would be extremely high premiums, some people worry.