Have you ever received a Certificate of Insurance and wondered if it’s even worth the paper it’s printed on? Well, unfortunately, you might be right to be skeptical. Insurance fraud is a major problem, costing American consumers at least $308.6 billion every year.
That’s a staggering amount!
The reality is that most Certificates of Insurance are as good as this napkin on the table. If it is real and not faked or altered the information listed on it could be invalid one minute after it was created. Simple as the business canceling the insurance coverage listed on it.
To make matters worse, some InsurTech companies claim to help and protect consumers, but they could be doing the opposite. One such company with a $5 million investment has actually created a huge problem for the insurance industry. Their system allows for fake insurance policies and Certificates of Insurance that look real but aren’t. This is a big problem because it puts Carriers, Brokers, and Consumers at risk.
These problems need to be solved!
We need to be able to trust these new InsurTech systems, but that trust has to be earned. Companies need to focus on actually solving problems and not just making a profit. So, make sure you carefully review any proof of insurance that you receive. Don’t just assume that it’s valid. And InsurTech companies, please do better! Your Terms of Service shouldn’t be a cover-up for potential fraud. Create something that truly benefits people!
How Properly Designed Systems Can Benefit Everyone
Properly created Insurtech systems should be designed to streamline the insurance process and make it more efficient for everyone involved. These systems should be able to accurately and securely store policy information, generate digital Certificates of Insurance, and quickly respond to claims. They should also be able to automate many of the processes involved in underwriting and policy management, reducing the risk of human error and improving accuracy.
In addition, properly created Insurtech systems should be transparent and user-friendly, making it easy for consumers to understand their policies and coverage. They should provide real-time updates and alerts to keep consumers informed about any changes or updates to their policies and offer multiple communication channels for support and assistance. By focusing on creating Insurtech systems that are intuitive, secure, and user-friendly, we can ensure that technology is being used to enhance the insurance experience, rather than create more problems.
As a Senior Software Engineer with 10+ years of programming experience, including 5 years in InsurTech, my unique skill set combines technical expertise with practical knowledge of the insurance industry. My hands-on experience in the automotive collision industry and as a General Contractor has prepared me to design and implement innovative solutions that benefit both consumers and industry professionals alike.