Insurtech refers to insurance technology that monitors, tracks and records relevant data. Insurance companies typically utilise this data to calculate premiums and investigate insurance claims. You mightn’t have heard of insurtech before because it’s a relatively new in the Australian insurance industry. Fortunately for you, this innovative technology means if you become a policyholder, you could experience fair premiums and transparent pricing. 

In this article, we provide an answer to the question ‘What is insurtech?’, list the benefits, detail some insurance brands that utilise insurtech and discuss how KOBA Insurance uses innovative and unique insurtech for their auto insurance policyholders. 

What’s insurtech?

Insurtech refers to data-driven technology that helps insurance providers collect and analyse relevant data. Insurtech companies are relatively new to Australia, with brands such as Honey Insurance paving the way for innovative home insurance policies. As for insurtech in the auto insurance industry, KOBA Insurance is one of the first to utilise this technology. We collect behind-the-wheel data and incorporate a modern application to help our valued policyholders navigate this in-depth, yet easy-to-use, technology.

One of the major causes of concern amongst the general populace is why insurtech companies require data. It’s a fair enough concern, as many people are reluctant to share data. But the reality is that your data can help insurtech companies calculate accurate and fair premiums. It’s standard practice for insurers to detail the types of data collected in the insurers’ product disclosure statements. It’s important to understand that the data collected is usually relevant to the insurance policy and the car that’s being insured. 

Benefits of insurtech

Below, you can explore the typical benefits of choosing a policy with an insurtech company: 

Accurate premiums

One of the major benefits for you as a policyholder is that you pay accurate premiums. There’s a slight misconception that insurtech lowers premiums, even though in some instances, it does. Its key objective is to calculate exactly how much you should pay, nothing more and nothing less. Without insurtech, companies typically rely on categories and assumptions for calculating premiums. This means the insurers don’t have an accurate idea of how you treat your home or vehicle. With insurtech, insurers may collect accurate data that demonstrate how you personally use and drive your car. 

Specialised insurance

Insurance companies utilising insurtech may also provide you with unique policies tailored for your circumstances and needs. An example of this might be the pay-as-you-drive (PAYD) policies in the auto insurance sector. As a PAYD policyholder with an insurance company that doesn’t utilise insurtech, you typically select a ‘band’, which is essentially a category of kilometres you might travel. This band may help to dictate your premium. If you drive fewer kilometres than what’s stated in your band, you still have to pay the standard premium. Insurtech can allow insurers to identify exactly how much you drive and apply that information to your policy, resulting in a policy specific to your driving habits. 

Fraud prevention

Insurance fraud is an unfortunate but common dilemma for modern-day insurers. If an insurance company utilises insurtech, they may be able to collect data relevant to a claim, which they could analyse and review for accuracy. 

Insurance companies that utilise Insurtech

With all this talk of insurance technology, you might be curious about some of the insurance companies out there who utilise insurtech. Here at KOBA Insurance, we’re one of the first auto insurers in Australia to utilise this innovative technology. But what about the other insurance sectors? Below, you can explore details of four popular insurance brands that utilise insurtech effectively:

Honey Insurance

Honey Insurance covers your household against things like fire, theft and flood. This insurance provider does a lot more than just cover your house, though. 

Honey Insurance utilises insurtech products, known as smart sensors, that warn you of impending damages or unusual activities in your home. This can include drastic temperature changes, moisture build-up and potential security breaches. The smart sensor can help you take action before anything serious happens, resulting in a claim. You may be perceived to be less of a risk to the insurer, which could reap you the benefits of reduced premiums. 

Cover Genius

This insurance company is a major insurer in the global insurance industry. They provide a range of insurtech products to business owners around the globe. They have application integrations for almost every major industry, from travel to retail. Cover Genius is a tech-based insurance company and almost relies solely on insurtech products. They have an extensive range of applications and features.

Their most notable insurtech product might be their Brightwrite software. This software is essentially a data analytics platform that helps business owners track their financial performance regarding insurance. This can allow business owners to provide customers with tailored insurance coverage that improves customer satisfaction but also optimises revenue and sales. 

UpCover

This insurance provider uses insurtech to provide fair coverage to small business owners, freelancers and contractors. They have tailored policies for businesses in varying industries, such as the medical, construction, fitness and social work sectors. They typically offer four types of policies: Allied Health insurance, products and public liability insurance, cyber and privacy liability insurance and COVID-19 Bounce-back insurance.

UpCover uses insurtech products to provide freelancers, business owners, contractors and professionals with tailored policies. They collect data from a range of sources to develop fair and accurate policies specific to a profession or business operation. UpCover also has an integrated application that allows users to monitor and access their policy documents on demand and also share proof of insurance with relative third parties. 

Kanopi

This insurance provider could be seen to be an amalgamation of the above insurers. They offer insurance packages for small business owners, homeowners and landlords. For homeowners, Kanopi offers extensive cover for valuable items, portable items, contents and building structures. For businesses, they offer standard coverage, along with invoice protection and identification services.

Kanopi has an excellent application that allows its policyholders to manage all their insurance needs with a few clicks of a button. With its data-driven products, Kanopi can offer its policyholders instant, accurate and fair quotes. 

How KOBA Insurance uses Insurtech

Here at KOBA Insurance, we have a unique operation compared to other auto insurers. With our advanced application and telematics system, we can track your ‘behind-the-wheel’ data and offer you fair premiums for comprehensive coverage. 

Below, you can discover how we use insurtech to develop tailored policies:

• Vehicle connectivity: Once you become a policyholder with KOBA Insurance, we issue you with a KOBA Rider. This is a telematics device, which is a fancy way of saying GPS. But, it’s actually more than just a GPS. The KOBA Rider collects important vehicle data, such as kilometres driven, average breaking speeds and acceleration rates. 

• Data collection: With your KOBA application downloaded and your vehicle connected through the KOBA Rider, we can start collecting your data. Data security is something we take extremely seriously. We understand how important privacy is, and we take every precaution to ensure we handle your data with integrity and professionalism. 

• Premium calculations: As a policyholder with KOBA Insurance, you pay two premiums. The first is an upfront fixed premium, which covers your vehicle while parked. The second is a driving premium, which covers your vehicle while you’re driving. With our insurance technology, we can measure the KM you drive and apply that cost-per-KM rate to your policy. For example, if your per-KM rate is 7 cents per KM and you drive 500KM this month, then you’re driving premium will be $35 for that month. Driving less next month? You’ll pay less for car insurance.

Why KOBA Insurance is a great solution.

If you’re in the market for a comprehensive cover, it might be worth considering KOBA’s Comprehensive Car Insurance. You could pay from a few cents per KM. With advanced insurtech technology, we strive so you pay for insurance you use. 

Get a quote online, today.

Any advice provided on this site is general advice only and does not take into account your individual needs, objectives or financial situation. Terms, limits, conditions and exclusions apply. Before making a decision, you should carefully read the Product Disclosure Statement & Financial Services Guide (PDS & FSG), and the Target Market Determination (TMD), which are available at kobainsurance.com.au to help you decide if the product is right for you. If you purchase a policy, KOBA receives a commission, which is a percentage of your premium, and may be entitled to a profit share if certain thresholds are met in agreed periods. Please ask us for more details.