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Technology into Insurance

Cloud computing, the Internet of Things (IoT), advanced analytics, telematics & many more

Minto Sherkhan
July 28, 2017

The idea of insuring existed even before Christ. It started its growth during second & third millennium before Christ. At the beginning it was just for the physical things and the transportation vehicle could be insured as most of the transportation took place via sea and with ships. Even with insurance, there was certain risks at the beginning.

Insurance has been an industry with low customer engagement. Major shifts in client demographics, behaviors, and expectations are underway and will have important ramifications for the insurance landscape. New digital players pose a potential competitive challenge as their low-cost technology platforms and different business models help them compete asymmetrically by targeting areas of the insurance value chain.

A variety of breakthrough technologies are set to spur a fundamental transformation of the insurance industry. Cloud computing, the Internet of Things (IoT), advanced analytics, telematics, the global positioning system (GPS), mobile phones, digital platforms. These technologies are also enabling the creation of new insurance products, services, and business models. And while emerging technology provides opportunities for traditional insurers to modernize and reinvent themselves, it also forces them to respond to new sources of competition from increasingly well-funded and nimble software-based companies that are beginning to make inroads in the market by focusing on unmet consumer demand, bringing down cost, and providing new services.


Internet of Things: The IoT is a network of nodes, or devices, that collect, monitor, and share data through the Internet. These connected devices, or “smart” devices, can include everything from automobiles, home security systems, wearable health monitoring units, kitchen appliances, and energy and transport infrastructure. It provides a prime example of how new data sources, better data, and ongoing data reporting are laying the foundation for the industry’s transformation by enabling insurers to more effectively model risk and underwrite policies.

Smart homes & Property Insurance:

Smart house monitoring systems will give homeowners and their insurers’ data on, and control over, major risks. This is expected to lower premiums as claims and losses are minimized.

Telematics and Car Insurance: Car insurance is yet another area that will be transformed by connected devices as telematics can transmit valuable data for assessing an individual’s risk profile. Instead of relying simply on basic information like age and gender, the type of car someone drives, and their history of accidents or offenses, insurers today can obtain real time data on their policyholders’ driving habits.


 Proliferation of smartphones and new software development tools have facilitated the emergence of innovative digital insurance platforms that provide better information, user experience, transparency, convenience, rates, and customization than traditional channels.



The underlying technology first used in Bitcoin—is a new type of distributed consensus system that enables transactions to be quickly validated and securely maintained through cryptography, computational power, and network users, removing the need for a trusted centralized authority. The blockchain provides an immutable record and audit trail of transactions and agreements that are replicated on computers around the world, thereby eliminating a single point of failure. Blockchain technology could “eliminate error, negligence, and detect fraud by providing a decentralized digital repository to independently verify the veracity of customers, policies, and claims.” By mutualizing infrastructure and creating a common record of truth, firms could save significant time and money and improve operational efficiencies. Moreover, because all transactions on a blockchain are time-stamped and immutable, identities are secure, and data is trustworthy, insurance fraud would be more easily detected and minimized.


Enables software to exhibit human-like intelligence, including learning, planning, reasoning, problem-solving, and decision-making. AI is quickly becoming increasingly proficient at performing tasks that have historically been difficult for computers to execute, including recognizing images, identifying spoken word, and using unstructured, or unlabeled, data. While currently further along its development cycle than blockchain, AI is still far from its expected potential. The technology could help insurers enhance automation, reduce risk and expense, increase productivity, and facilitate better and faster decision-making. The technology will impact insurers indirectly through its widespread usage in various fields such as medicine and transportation in the future.


With the innovative digital platforms equipped with bloackchain and AI, offered by Sherji, insurance could now be taken to a wider angle, allowing our clients to spread their wings wide without the constrains of insecurity or non-reliability.