Technology is infiltrating every aspect of business in all industries. Technology has taken precedence in the automobile, finance or insurance, and new buzzwords are born. InsurTech is another interesting buzzword that has been occupying the market sentiments recently. As the name suggests, it’s related to the insurance industry adopting the advanced technology and going online, but how it’s different from Fintech?
The finance and insurance industries are the different pages of the same book. They are indistinguishable from the common man. So, what is the main difference between FinTech and InsurTech? If you are confused and want to know the answers, then you are at the right place. In this post, we will share detailed information on the differences between InsurTech and FinTech.
What is FinTech?
FinTech is nothing but Financial Technology. Any financial transaction, be it the payments, KYC, Lending, EMIs, or Infrastructure, amalgamated with Technology, is known as the FinTech. Almost all of the Financial Entities in India are adopting the FinTech trend and providing seamless online service to the customers. With FinTech, the customers can access all of the services online from the comfort of their chair. Also, the companies can reduce the paperwork and automate the tasks easily.
What is InsurTech?
As the name suggests, InsurTech is nothing but Insurance Technology. The Insurance Industry has adopted the latest technology and provides services online through the platforms. So, this word started. As of now, India has not seen many InsurTech companies, but the number s increasing significantly. These companies allow people to access the majority of the insurance services online through the portal. With the online portal, it becomes easier for the users to access all of the services, buy new policies, pay the insurance premiums and even submit the claims.
Differences Between FinTech and InsurTech
#1 – Solutions
FinTech and the InsurTech companies provide respective solutions to their customers. With FinTech, the companies provide solutions in lending, payments, insurance services, and other financial services. While on the other hand, InsurTech is providing solutions in buying new policies online without paperwork or even followed by agents. Also, the companies are making it easy for their users to pay the premiums from time to time through different payment options.
#2 – Streamlining the Processes
Both FinTech and InsurTech companies are trying to streamline their respective processes with technology. With FinTech, all financial transactions have been made easy with the help of technology. While on the other hand, Insurtech uses technology to purchase new policies without paperwork. InsurTech companies are using technology for automating backend processes.
#3 – Customer Interaction
With FinTech, the customer interaction is very minimal as compared to InsurTech. With FinTech, all financial transactions are done online with less human interaction. The customers don’t need to go through the agents for their transactions. All they need is a computer or a mobile phone with an internet connection. While on the other hand, InsurTech provides a platform where the users can interact with each other and with the company officials. Also, people can post their queries and get the solutions for the same.
So, this was all about the differences between FinTech and InsurTech. Both industries serve different purposes but ride on the same technology stack, which makes them useful for the future. We hope that this article was helpful for you in understanding the differences between InsurTech companies and FinTech companies.