Insurance Online

What Is Insurtech, And Why Is It A Benefit To Consumers?

By September 19, 2019 No Comments

In a country where the cost of living keeps rising but wage growth is mostly stagnant, it’s incredibly important for individuals and families to be smart with their money.

As a famous old saying goes, “A penny saved is a penny earned.”

There are many strategies and tricks that consumers can use to use to save a little more in their bank accounts or scrounge up some extra fun money, but one area that a lot of people don’t think about investigating is what they pay for insurance in all of its various forms.

Luckily, the recent rise of a concept called “Insurtech” is changing the industry and — more importantly — helping consumers save thousands of dollars.

What is Insurtech?

According to the website Investopedia, Insurtech is “the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Insurtech is a combination of the words “insurance” and “technology,” inspired by the term Fintech.”

The definition continues:

“The belief driving Insurtech companies and investments by venture capitalists in the space is that the insurance industry is ripe for innovation and disruption. Insurtech is exploring avenues that large insurance firms have less incentive to exploit, such as offering ultra-customized policies, social insurance, and using new streams of data from Internet-enabled devices to dynamically price premiums according to observed behavior.”

To put all of that another way: by utilizing new technological advancements, companies are able to make the world of insurance faster, easier, more convenient, and more affordable for consumers.

How does Insurtech benefit you?

Beyond making insurance more cost-effective, Insurtech can benefit you as a consumer in a wide number of other ways, depending on the company and what they’re offering.

Some common uses of Insurtech include receiving online quotes for home, auto, extended warranty, or vehicle replacement cost insurance that can be compared to competing companies, connecting consumers to live agents through chat systems wherever an internet connection exists, understanding coverages in more detailed and interactive ways, and many more.

Broadly speaking, Insurtech gives consumers more control and flexibility over how they manage their insurance.

How Obvi uses Insurtech

As we wrote about in another recent blog post, buying a vehicle from a dealership can be a stressful experience, especially when the topics of extended warranty and financing payments enter the conversation.

But what if you could purchase Extended Automobile Warranty, GAP Insurance and New Car Replacement Insurance all from the comfort of your own home — and at a significantly lower price than what is offered at a dealership? That’s where Obvi comes in.

Visit Obvi’s website on a computer, tablet or smartphone and you can enter your information yourself and receive a free quote within minutes. It’s that simple! But if you do need any help in the process or have any questions, an Obvi Advisor is usually just minutes away via web chat, phone call or email.

The most important benefit of Obvi using Insurtech, though, is how the technology helps us offer our customers a fair price and financial peace of mind. Many people can’t comfortably afford a $4,000-$5,000 repair bill, and nobody wants to pay off a huge remaining loan balance on a vehicle that has been written off. As mentioned earlier, being smart with your money is incredibly important these days.

Obvi’s products

Check us out online to learn more about our Extended Automobile Warranties, GAP Insurance and New Car Replacement Insurance, or feel free to contact us so we can help determine which of our products best suit your needs. Customer satisfaction is our top priority, so we’re always here to help.