How Does Insurance Work In Europe? Find Out Here

By: Steve_Barker

The basic principles of insurance remain the same wherever you are in the world. One takes insurance out to provide financial insurance for one’s belongings or life. Legislation and implementation, however, differ depending on the country that one is in.

In Europe, insurance legislation and implementation are fairly uniform. This is because Europe acts as a borderless, single body. Across Europe at the moment, companies are incorporating new technologies into their operations, which is known as insurtech.

This article will explain how insurance works in Europe, particularly with relation to insurtech:

What Is Insurance?

Taking out an insurance policy against an asset is essentially securing it financially so that if it is damaged or becomes lost, you are financially compensated. There is no limit to what one can insure. It is even possible for a person to insure their own life or their pet’s life. Insurance is a very important part of many people’s lives, ensuring total financial security if the worst were to happen. Without insurance, if one’s house were to burn down, the homeowner would have to come up with the money themselves to pay for their home’s restoration. With insurance, however, the insurance provider pays for the property’s renovation, and the homeowner isn’t left out of pocket. 

European Insurtech

Europe is at the forefront of insurtech development, research, and integration. As the world becomes more and more technologically developed, insurance companies are able to become more efficient. This integration and incorporation of new technologies is insurtech. Insurtech allows for greater efficiency, control, and accuracy. Insurtech in many respects powers the European insurance industry.

Insurance companies in all areas of the insurance niche are able to use insurtech to their advantage, from car insurance to home insurance. One of Greece’s most respected insurance companies, Asfaleies24.gr, utilises insurtech in order to offer its customer’s car insurance compare. Throughout the continent, there are many other companies offering the same thing.

How Does Insurtech Work?

When discussing how insurance works in Europe in today’s world, it’s more of a case of discussing how insurtech works. There are very few if any, insurance companies left on the continent that doesn’t incorporate insurtech into their daily operations to some degree. Insurtech involves the use of smartphone applications, wearable devices, processing tools, online policy handling, and automated processing. Insurtech is also used for collecting analysing customer data. Insurtech allows customers to get insurance policies immediately through smartphone applications, instead of having to attend meetings, fill out various forms, and speak to customer service reps on the phone. This saves insurance companies and customers a lot of time.

Benefits to Insurtech

There are many advantages to insurtech, including:

• Accessibility is perhaps the biggest advantage of insurtech. Users are able to instantly receive coverage, without having to trawl through multiple online forms and documents. The ability to instantly receive coverage makes the process much easier for both customers and insurance companies. Customer satisfaction is crucial if a business wants to survive. With most insurance companies offering insurtech nowadays, companies that do not will be unable to compete, and will not be able to satisfy their customers. Insurtech allows customers from anywhere in the world to instantly access and attain policies with the use of simple, straightforward applications.
• Lowered costs is another benefit for policyholders and insurers. Insurance companies no longer have to employ huge call centre’s worth of staff in order to answer their customer’s queries. Instead, they can automate a lot of processes, implement live chat, and streamline processes so that customers don’t have to call in. Because insurance companies are able to reduce their outgoings, they are able to offer more affordable policies to their customers. In addition, with the use of technology customers are able to get more accurate policies. An example of this is the use of wearables and fit bits. They allow customers to assess their health more accurately and provide accurate readings, allowing them to get more affordable policies.

• Fraud prevention is another key element of insurtech. Insurance technologies are designed with fraud prevention in mind. This allows insurance companies to operate more securely, keeping their customer’s data, and their own, safer.

Insurtech Integration

Throughout the European Union, countries are integrating insurtech. There are boards, committees, and teams created exclusively to help facilitate this. In addition, there are annual conferences that take place, where European insurance companies convene to discuss insurtech. As mentioned earlier, more or less all insurance companies at this point have incorporated insurtech into their business’s operations. Those that haven’t soon will, or they will go bankrupt. A lot of money is going into insurtech development in the EU, so it should come as no surprise that they are at the forefront of global insurtech integration and development.

Insurance in Europe, like in all continents and countries, is an absolute necessity. There are thousands of insurance companies, some better than others. It’s important that you educate yourself about insurance before you take out a policy.

By Steve Barker

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