Insurtech

Insurtech, short for insurance technology, refers both to startups built around software and data and to the technology itself, which established insurers have also adopted. In life insurance, insurtech companies have focused mostly on the buying experience: online quotes, digital applications and accelerated underwriting that can approve some applicants in minutes without a medical exam.

Instant decisions rely on third-party data the applicant authorizes, such as prescription histories, MIB records, motor vehicle reports and credit-based scores, fed into rules engines and predictive models. Many insurtechs are agencies or managing general agents rather than insurers: the policy is issued and backed by an established carrier, whose name appears on the contract. Other uses include e-signatures, digital claims filing, wearables-based wellness programs and embedded insurance offered at checkout.

For buyers, check which company actually issues the policy and its financial strength, not just the app. Faster underwriting may come with lower maximum face amounts, and some applicants are routed to traditional underwriting anyway. Regulators are also examining how algorithms and outside data are used in underwriting decisions. See life insurance startups and what they changed and AI regulation in insurance: Colorado, the NAIC bulletin and New York.