Financial technology is changing every known industry. Investing, trading, banking and insurance are all getting disrupted. Work that earlier depended on tedious calculations that took a long time to compute now takes a few seconds or less. Artificial Intelligence, data analytics and machine learning is today changing the time, cost and efforts required to do such tasks.
Insurance is an industry that is over a century old. It is needed by every business to insure all their assets before they begin working with it. Thus, no work can be done without this industry and that makes this industry one of the most important of all the financial fields. Insurance is an industry that is majorly present in London. With the growth of technology and fintech, the city of London got its technology upgraded in the fintech sector. Insurance also benefitted from this.
Insurance brokerages which inspect claims to disburse monies to claimants now use analytics to gather all the data and use this to understand the direction of the industry. Data analytics about which industry claims often or which industry needs a large amount,etc. can help insurance companies determine insurance premiums for companies as per their industry and the stage in which the company is in.
Although fintech is allowing faster settlement of claims and disbursements, people worry that the data analytics is also making insurance providers oversensitive to risks that maybe normal business practices. This is indirectly increasing premiums but it also means more profits for insurance companies. With more companies poised to open manufacturing units in India, more insurance companies will be needed, thus it is important that we begin by having the right infrastructure in place for Making in India.