InsurTech in Real Estate
There have been significant advances in real estate-related FinTech (Financial Technology) and operations management tools throughout the last couple of decades – and in the last few years in particular.
One area of technology that is growing particularly swiftly is that of InsurTech (Insurance Technology).
But what exactly is InsurTech, and how can it be applied to improve the operations of real estate companies? In this article, Property Solvers explore the fundamentals of resources of this kind and explain their potential benefits.
What is InsurTech?
As we’ve already mentioned, InsurTech stands for “Insurance Technology”.
Tools that fall into this category make use of Artificial Intelligence, data analytics, machine learning and other methods of automation to help property professionals – such as landlords – to find precisely the right insurance product for their needs.
InsurTech systems stockpile and analyze key data on the specific properties for which insurance is needed, as well as the buyers and renters who may acquire or utilize them.
This data is then applied to thousands of insurance products to match the landlord or investor attached to the property to their perfect type of cover – for the best possible price.
How Does InsurTech Benefit Real Estate Companies?
Technology of this kind offers opportunities for busy real estate professionals to save time and effort in their search for the right insurance. What’s more, it may well prevent them from spending needless amounts of money
This is not only due to the fact that the user’s time itself has significant value, but also because many InsurTech tools will compare the costs and premiums associated with various types of cover to find a product that represents the best possible value.
With InsurTech, there is rarely any need to book an appointment with an insurance broker. This saves further money that would otherwise have been spent on service fees and administrative costs.
InsurTech products may even reduce the complexities of arranging inspections. Many include tools that will help to weed out fraudulent organizations and prevent security risks, too.
The entire process of finding the perfect insurance cover can be achieved remotely using a laptop or smartphone. Most InsurTech providers have their own apps or software to enable their users to streamline the process still further.
Should I Invest in InsurTech?
The decision of whether or not to use technology of this kind will depend on the nature of your business and its activities, as well as your own personal preference.
While InsurTech products are likely to be highly convenient to yourself as a real estate professional, it is worth noting that many of your competitors will also be likely to employ automated tools of this kind to save time and money.
However, the usefulness of technology of this kind will depend on the complexities of your requirements.
You should consider the cost of subscribing to an InsurTech service balanced against your perceived value of the time and effort you would otherwise put into seeking out insurance cover (on top of the associated real-world “material” expenses).
Whatever your own decision, it should be noted that InsurTech is just one part of a much wider arsenal of resources that are being rolled out to streamline the operations of real estate companies – and that this trend will continue to grow as time goes on.