Digital insurance is all the rage these days and it’s evident in the way that companies are flipping an age-old industry on its back. The push stems from customers, internal operations, and unavoidable technological progression, and it’s pretty exciting to see how it will all evolve.
With so many new products launching and re-launching in the market, we thought it’d make sense to break down the essential jargon. The next time someone gushes on how their company is building the latest and greatest, you’ll be right on top of the conversation with them.
Thank you to our good friends at WeGoLook, the Uber of inspections providing on-demand field services, for helping us perfect this list. They’re leaders in the digital insurance reformation and their recent pitch at the Dig+In Conference won them first place for “Best in Show” – a perfect example that when you’ve got it right, you’ve got it right.
The automated performance of digital tasks that would otherwise have required human interaction. This doesn’t automatically mean a futuristic robot – AI includes Siri on the iPhone, Alexa on Amazon’s Echo, spam filtering, or even the ranking system when you Google something. When someone says their product includes AI, it’s a fancy way of saying they are building an automated system.
The mass volume of data that is available for analysis as a result of people spending more time online. Big Data helps to understand people’s patterns and trends and is really helpful to companies who need data to make critical decisions.
Self-described as “A Peer-to-Peer Electronic Cash System”, Bitcoin is a crypto-currency that can be accumulated, stored, and spent digitally.
Originally developed for Bitcoin, block chain is a distributed ledger used for financial transactions. All interactions are publicly posted here and there are claims that it’s more secure because it’s not housed in just one location, keeping it safe from hackers and corruption. This visual from Blockgeeks helps demystify that process.
This is AI used to simulate human interaction. Many companies are opting for chat bots to make it easier for consumers to reach customer service without having to sit through a time-consuming phone tree. At the same time, it makes users feel like they’re chatting to a friend.
The growing ability to provide policyholders with entirely digital insurance products and services through the combination of information, business resources, and digital technologies.
Also called the sharing, on-demand, or peer economy, it’s the sum of digital platforms that enable people to earn income from underutilized assets such as homes, cars, time, or any other physical assets. It also includes the prevalence of short-term contracts or freelance work. Think Uber, TaskRabbit, or AirBnB.
The combination of innovative technology and digital platforms with traditional insurance products and services.
Internet of Things
The ability of everyday consumer products to connect to the internet. This is like having an internet-connected watch or smart refrigerator.
Usage-Based Insurance (UBI)
Enabled through innovative technology, insurance products in which premiums are based primarily on usage statistics.
Peer-to-Peer (P2P) Insurance
A network of shared risks that are insured by a group of people or businesses.
Digital programs that facilitate and enforce all aspects of the negotiation of performance of a contract.
A growing field of business that involves digital devices, vehicular technology, and transportation services. It’s a method of monitoring vehicles and uses GPS to record how fast you’re driving, where you’re going, and how you’re behaving internally. In the future, if you get into an accident, insurance companies could potentially pull from this information to solve your case.