General

Just two years ago, Hurricane Idalia tore through Florida’s Gulf Coast, leaving a trail of destruction.

Entire neighborhoods were submerged, roads were washed away, and thousands of homes sustained severe wind and flood damage. In the wake of the storm, insurance adjusters faced a familiar challenge—navigating hazardous conditions to assess losses, process claims, and help residents rebuild.

Instead of waiting for floodwaters to recede, insurers deploy drones, capturing real-time aerial footage of affected areas. Within hours, they can assess damages, expedite claims, and provide much-needed relief to homeowners without unnecessary delays.

This isn’t the future. It’s happening right now.

From wildfires in California to hurricanes in Florida, drones are becoming one of the most valuable tools in the insurance industry. What was once a novelty is now a necessity, revolutionizing claims processing, risk assessment, and fraud detection.

But how exactly are drones used in insurance, and what challenges remain?

Drones in Insurance: How They Work

Drones, also known as unmanned aerial vehicles (UAVs), have come a long way from being just military tools or recreational gadgets. Equipped with high-resolution cameras, thermal sensors, GPS, and AI-driven analytics, drones can capture real-time aerial data, allowing insurers to assess damage faster and more accurately than traditional methods.

Instead of relying solely on manual inspections, which can be time-consuming and even dangerous, insurance companies are deploying drones to survey disaster-hit areas, inspect roofs, evaluate crop damage, and even prevent fraud.

Transforming Claims Processing

When disaster strikes, homeowners and businesses rely on insurance payouts to start rebuilding. But claims are always slowed down by delays, logistical challenges, and even disputes over damage assessments.

Drones are changing that through:

• Faster Damage Assessment: Insurers can deploy drones within hours of an event, capturing high-resolution images and videos to assess the extent of the damage, sometimes before adjusters even set foot on the property.
• Improved Accuracy: Unlike ground-level inspections, drones provide aerial perspectives that capture the full scope of damage, reducing disputes between insurers and policyholders.
• Enhanced Efficiency: A single drone operator can inspect multiple properties in a day, speeding up claims processing and getting homeowners the payouts they need faster.

Risk Assessment & Fraud Prevention

Beyond claims, drones are proving invaluable in risk assessment and fraud detection.

• Pre-Event Risk Analysis: Insurers can deploy drones to inspect properties before a disaster strikes, helping assess vulnerabilities and even adjust premiums based on actual risk levels.
• Fraud Detection: Drones help verify claims by comparing before-and-after aerial imagery, catching inconsistencies that might indicate exaggerated or false reports.

Take agriculture insurance, for example. By using drones to monitor crop conditions before and after extreme weather events, insurers can ensure authentic valuations, thus eliminating the risk of policyholders inflating their losses.

Challenges & Roadblocks

Despite their advantages, integrating drones into insurance workflows isn’t without hurdles.

Here are a few:

• Regulatory Barriers: In the U.S., the Federal Aviation Administration (FAA) imposes strict regulations on drone usage, including flight altitude restrictions, operator licensing, and no-fly zones near airports and crowded areas.
• Privacy Concerns: Homeowners may feel uneasy about drones flying over their properties, leading to legal and ethical questions. Insurers must be transparent about data collection and ensure compliance with privacy laws.
• High Initial Costs: While drones can save insurers millions in the long run, the upfront investment in hardware, software, and trained operators can be steep.

Final Thoughts

Despite such challenges, leading insurers are pushing forward.

Companies like State Farm and Allstate are actively using drones for roof inspections and post-disaster assessments, while technology providers like ActionDrone and EagleView are partnering with insurers to provide drone-based claims solutions.

From faster claims processing and risk assessment to fraud prevention and disaster response, UAVs are making insurance smarter, safer, and more efficient.

The world is full of brilliant business ideas that never see the light of day.

Often, this is because aspiring entrepreneurs lack the technical skills to develop their ideas into functional digital products. The alternative—hiring a skilled software developer or partnering with a programmer—can be super expensive, especially for startups with limited budgets.

However, the rise of low-code and no-code (LCNC) platforms has made it easier for businesses to build, test, and launch digital products without requiring extensive coding knowledge.

Some of the biggest companies today use low-code application platforms (LCAP) to scale their operations. On one hand, companies like Shopify empower millions of entrepreneurs to build online stores without needing advanced programming skills. On the other end of the spectrum, Comet—a freelancing marketplace—credits its early success to no-code platforms for developing software solutions.

For the insurance industry, where digital transformation is both essential and complex, LCNC platforms are redefining innovation—more importantly, they’re making it accessible to anyone with a vision.

What Are Low-Code/No-Code Platforms?

Low-code and no-code platforms provide a way to develop software applications using graphical interfaces, drag-and-drop functionalities, and pre-built components instead of traditional hand coding.

Low-code platforms require minimal coding knowledge and allow users to customize applications beyond basic templates. No-code platforms eliminate the need for coding by enabling anyone to build applications using simple configurations.

These platforms are growing rapidly. According to Gartner, by 2025, 65% of new business applications will be developed using low-code or no-code technologies, a significant jump from less than 25% in 2020.

This rise is driven by the increasing need for businesses to develop digital solutions quickly and cost-effectively.

The Relevance and Applications of LCNC in Insurance

For years, insurers have struggled with outdated legacy systems, complex policy management processes, and slow claims handling. Low-code platforms offer insurers a way to modernize their operations without completely overhauling their existing infrastructure.

Here are some of its common applications:

• Accelerating Digital Transformation – Insurers can develop and deploy applications faster, reducing the time required for digital upgrades.
• Enhancing Customer Experience – Companies can create self-service portals, mobile apps, and chatbots that improve customer engagement.
• Automating Claims Processing – Low-code application platforms enable automated workflows for filing, reviewing, and approving claims, leading to faster payouts.
• Reducing Operational Costs – Without the need for large IT teams, insurers can allocate resources more efficiently.
• Improving Risk Assessment – Real-time data integration allows insurers to refine underwriting models and fraud detection mechanisms.

Successful Insurers Using LCNC

Several Insurance companies have leveraged low-code application platforms to drive innovation and efficiency.

Allianz – One of the world’s largest insurers, Allianz has used low-code platforms to streamline claims processing and policy management. They recently developed a Building Block Platform, which allows customers to create customizable insurance policies.

Zurich Insurance Group – Zurich has adopted LCNC to enhance operational efficiency. Their FaceQuote app, built using OutSystems (a low-code platform), enables customers to receive life insurance quotes by simply uploading a selfie.

Low-code application platforms have also enabled the development of insurance-related software solutions. For instance, Salesforce Lightning offers customizable applications for all insurance, finance, sales, and many other fields.

Final Thoughts

Low-code and no-code platforms are transforming the insurance industry, making it easier for companies to innovate, cut costs, and enhance customer experiences.

With the demand for digital solutions growing every day, more of these platforms will become essential in helping insurers stay agile and competitive.

As the insurance industry embraces digital transformation, seamless verification and automation are key to staying ahead. LenderDock empowers insurers with real-time policy verification, automated workflows, and advanced digital solutions—all designed to enhance efficiency and reduce administrative burdens.

Discover how LenderDock can revolutionize your claims management and policyholder verification. Get started today!

Few industries have leveraged data as extensively as insurance.

For decades, insurers have relied on actuarial models, historical claims data, and risk assessments to guide their decisions. But today, advanced analytics, AI, and machine learning have the potential to revolutionize underwriting, claims processing, and customer engagement.

The problem? Implementation is not as easy as it sounds.

From legacy systems and data fragmentation to talent shortages and lack of executive buy-in, insurers face numerous obstacles when trying to leverage advanced analytics. As explored in our previous article, the power of analytics goes far beyond crunching numbers—it shapes smarter decision-making and enhances customer experiences.

However, harnessing this power comes with its own set of challenges. Let’s break down these obstacles and explore how they can be tackled.

 1. The Data Dilemma: Volume Without Cohesion

Insurance companies generate and collect enormous amounts of data from various sources: call centers, mobile apps, self-service portals, social media interactions, and even IoT devices in cars and homes. However, having a wealth of data is not the same as having usable data.

One of the biggest challenges is fragmentation—different departments store data in separate systems that don’t communicate well with each other. A claims department may record information differently from the underwriting team, leading to inconsistencies. Without a unified data infrastructure, valuable insights are lost in translation.

 2. Legacy Systems: Old Tech Meets New Demands

Many insurance firms operate on outdated legacy systems, some dating back decades. These systems were not designed to support modern analytics tools, making integration difficult. Upgrading to a cloud-based data ecosystem requires a huge investment, both in infrastructure and employee training.

Consider the case of State Farm, which launched a multi-year initiative to modernize its data infrastructure. Despite investing billions and its partnership with Amazon AWS, a cloud computing platform, the transition has been slow due to compatibility issues with existing systems and the challenge of retraining employees to work with AI-driven processes.

 3. Translating Insights into Action

One of the most overlooked challenges is the failure to translate analytical insights into actionable business strategies. Many companies invest in predictive modeling but fail to integrate findings into everyday decision-making.

For example, an insurer might develop an AI-driven fraud detection system that identifies suspicious claims. However, if claims adjusters aren’t trained to interpret AI alerts or lack the authority to act on them, the tool becomes useless.

Aside from that, even when the technology and talent are in place, organizational resistance can stall progress. Employees, especially claims adjusters and underwriters, may fear that automation will replace their roles.

Moving Forward: Solutions to Overcome These Challenges

The road to implementing advanced analytics in insurance is tough, but not impossible. Here’s how insurers can overcome these hurdles:

• Invest in Data Infrastructure: Transitioning to cloud-based, integrated data systems will help unify data sources and eliminate inefficiencies.
• Prioritize Talent Development: Partnering with universities, offering competitive salaries, and upskilling existing employees can help bridge the talent gap.
• Foster a Culture of Change: Implement training programs that emphasize and perhaps even sympathize how AI complements human decision-making rather than replacing it.
• Enhance Cybersecurity Measures: Adopting robust data encryption, multi-factor authentication, and regulatory compliance frameworks can mitigate privacy risks.
• Align Analytics with Business Goals: Ensure that AI-driven insights directly impact claims processing, fraud detection, and customer service rather than being purely theoretical.

Bottom Line

Despite these challenges, the shift toward data-driven decision-making in insurance is inevitable. Companies that successfully integrate advanced analytics will gain a competitive edge through faster claims processing, improved risk assessments, and better customer experiences.

By addressing legacy issues, talent shortages, and data governance concerns, insurers can harness the power of analytics and pave the way for a smarter, more efficient industry.

The key lies in not just having data but knowing how to make it work for you.

Earlier this year, Los Angeles experienced a series of devastating wildfires, most notably the Palisades and Eaton fires, which together scorched approximately 38,000 acres.

The Palisades fire, which ignited on January 7 in the Pacific Palisades area, rapidly expanded to over 23,700 acres by January 15. Meanwhile, the Eaton fire broke out in the Altadena region, consuming around 14,117 acres. Tragically, these fires resulted in at least 25 fatalities and the destruction of thousands of homes.

The primary causes of these wildfires were extreme and rare windstorms, with Santa Ana wind gusts reaching up to 100 mph, combined with exceptionally dry conditions following eight months without measurable rainfall. These factors created the perfect conditions for rapid fire spread, leading to catastrophic loss of life and property.

In this article, we’ll explore how to file an insurance claim if your property was affected, the potential challenges you may encounter, strategies to navigate them, and a broader perspective on how insurance functions in the wake of catastrophic events like these.

Steps to filing an insurance claim

In the aftermath of the fires, affected residents are navigating the complex process of filing property insurance claims. Understanding the necessary steps can help ensure a smoother and more efficient recovery.

The first step for policyholders is to contact their insurance providers to report damages promptly. Timely communication initiates the claims process and allows insurers to provide guidance on the required documentation.

Next, it is essential to thoroughly document all damaged or lost items. Taking clear photographs and maintaining detailed records, including descriptions, purchase dates, and approximate values, strengthens the claim’s validity.

To prevent further damage, homeowners may need to make temporary repairs, such as covering exposed areas. Keeping receipts for these repairs is crucial, as they are typically reimbursable under most policies.

Once the claim is filed, insurance companies will dispatch adjusters to assess the extent of the damage. Being present during inspections ensures that all losses are accurately accounted for and any concerns can be addressed directly.

Finally, insured homeowners should review their policy to understand coverage limits, deductibles, and specific clauses related to wildfire damage. Having a clear grasp of these details helps set realistic expectations for claim outcomes and ensures there are no surprises during the settlement process.

Challenges in the claims process

Despite these steps, homeowners may encounter several challenges while filing claims.

Given the scale of the disaster, insurers are handling thousands of claims, leading to longer processing times. This can slow down payments and repairs. Insurance providers may offer settlements lower than expected, citing depreciation or policy limits.

Some homeowners may discover that their policies do not fully cover the cost of rebuilding, especially if property values have increased since their last assessment, which, sadly, in a state like California, is a harsh reality.

Without thorough documentation, some claims may be delayed or denied if insurers require more proof of ownership or value. A surge in demand for repairs can lead to a shortage of construction workers and materials, delaying rebuilding efforts.

Challenges for insurers

The impact of catastrophic losses extends beyond homeowners, placing immense strain on insurers as well.

Massive disasters like wildfires create financial instability by forcing insurers to pay out billions of dollars in claims within short periods. This significantly reduces the capital available to maintain their risk pool, making it difficult to balance the financial stability of the company while fulfilling obligations to policyholders.

When losses surpass anticipated levels, some insurers may increase premiums, reduce coverage in high-risk areas, or even withdraw from certain markets altogether. This has already been seen in California, where some insurers have scaled back offerings due to the rising frequency and severity of wildfires.

This is further compounded by the unpredictability of climate-related disasters, making it difficult for insurance companies to accurately model risk and allocate resources efficiently, yet.

Way forward

To navigate these challenges effectively, homeowners should take proactive steps.

Maintaining open communication with insurers and regularly following up on claim updates ensures that you remain informed. Aside from that, seeking professional assistance from public adjusters or even insurance attorneys can help resolve disputes over settlement amounts.

Exploring government and nonprofit aid can help bridge financial gaps that insurance payouts may not fully cover. In response to the recent fires, the federal government has announced financial assistance of $770 per affected resident, providing some immediate relief to those impacted.

Additionally, maintaining detailed records of all communications, repair estimates, and receipts strengthens claims and ensures the necessary documentation is readily available for insurers.

Imagine you’re at a coffee shop, choosing between a subscription for unlimited coffee or paying only for the cups you actually drink. It doesn’t make sense to buy extra cups, or rather, time, you don’t consume. 

Insurance should work the same way. 

Pay-as-you-go insurance models, which charge customers based on actual usage rather than fixed premiums, are gaining traction every day. From auto insurance that charges per mile driven to short-term travel coverage, Pay-as-you-go is reshaping how insurance is perceived and consumed.

This model builds on usage-based billing models seen in industries like cloud computing and streaming services. The pay-as-you-go model appeals to cost-conscious consumers who want to pay only for what they use.

While the opportunities are significant, challenges like technological integration, regulatory compliance, and consumer education must be addressed to ensure widespread adoption.

Benefits of Pay-As-You-Go Insurance

Pay-As-You-Go insurance opens new avenues for insurers and policyholders alike.

For insurers, it attracts younger, tech-savvy consumers drawn to dynamic pricing models that align with their lifestyles. Insurtech companies like Metromile in the United States have successfully implemented the innovative model for auto insurance, allowing low-mileage drivers to save significantly compared to traditional plans.

This model extends beyond auto insurance. Short-term travel insurance can be activated only for the days someone is abroad, saving costs for infrequent travelers. Similarly, health insurers are exploring Pay-As-You-Go models tied to wellness metrics, rewarding consumers who exercise regularly or meet health goals.

For consumers, Pay-As-You-Go insurance offers transparency, with pricing tied directly to behavior and usage. This empowers policyholders to manage their costs effectively. A part-time driver, for example, could pay significantly less under a Pay-As-You-Go plan than with a traditional fixed-premium model.

Real-time data integration further enhances the experience by allowing customers to track their usage and understand its impact on premiums and encouraging responsible behavior.

Setbacks 

Despite its promise, Pay-As-You-Go insurance faces several hurdles.

One major challenge is the reliance on technology. Pay-As-You-Go insurance requires robust systems to track and analyze usage data accurately. For auto insurance, this involves telematics devices or mobile applications capable of recording miles driven or driving behavior.

While mobile telematics has proven effective, insurers must ensure these systems are reliable and secure.

Data privacy is another concern. Pay-as-you-go models necessitate collecting sensitive information like mileage or health metrics. Consumers may hesitate to share such data, particularly if they’re unsure about its security. Insurers must implement strong cybersecurity measures to protect customer information and build confidence.

Regulatory hurdles also pose challenges. Insurance is heavily regulated, and new models like Pay-As-You-Go may face scrutiny from lawmakers. Ensuring fairness and transparency while preventing discrimination will be critical.

Consumer education is equally vital. Although Pay-as-you-go’s core concept—paying for what you use—is straightforward, its application in insurance can be complex. Insurers must communicate the benefits clearly and help customers understand how these models work, or risk alienating potential adopters.

Lessons from Other Industries

The Pay-As-You-Go concept isn’t unique to insurance. Consumers already encounter it in streaming services like Netflix and ride-hailing apps like Uber, where costs are tied directly to usage. These examples demonstrate the broad appeal of Pay-As-You-Go and its ability to align pricing with consumer behavior.

Within insurance, Metromile exemplifies the practicality of Pay-As-You-Go auto insurance, using telematics to charge customers only for the miles they drive. Similarly, short-term travel coverage like the one offered by UK’s Chubb highlights the versatility of Pay-As-You-Go across different sectors, offering scalable and personalized solutions.

Conclusion

Pay-as-you-go insurance models represent a future of greater flexibility and customer focus in the insurance industry.

They provide fairer pricing mechanisms, align premiums with usage, and foster trust through transparency. However, to unlock their full potential, insurers must address challenges related to technology, privacy, regulation, and education.

As insurtechs continue to innovate and consumer demand for personalization grows, Pay-as-you-go models are poised to become a cornerstone of modern insurance. By tackling these challenges head-on, insurers can ensure that Pay-As-You-Go evolves from an emerging option to an industry standard, shaping how we protect our assets and well-being.

The rapid advancements in genetic testing and genomics over the past two decades have opened new frontiers in medicine, research, and public health.  

With these innovations, questions have arisen about the intersection of genetic data and life insurance. While genetic information has the potential to improve risk assessment and create more personalized insurance products, it also raises concerns about fairness, privacy, and accessibility. 

The handling of genetic data varies across different types of insurance. In the United States, the Genetic Information Nondiscrimination Act (GINA) of 2008 prohibits health insurers from using genetic information to determine coverage or pricing. This is aimed at encouraging genetic testing without fear of discrimination.  

However, these safeguards do not extend to life insurance, long-term care, or disability insurance, creating a complex regulatory landscape and sparking debates about how genetic data should be managed in these contexts. 

The promise of genetic data in life insurance 

Genetic testing offers life insurers new opportunities to refine their underwriting processes and better align premiums with individual risk profiles.  

With the cost of genome sequencing plummeting—falling from millions of dollars in the early 2000s to just a few hundred dollars today—genetic testing is becoming more accessible than ever. This shift presents insurers with a wealth of data that can: 

Enhance Risk Stratification: Genetic markers associated with specific diseases, like the APO E4 allele linked to Alzheimer’s disease or BRCA mutations associated with breast cancer, allow insurers to assess risks with greater precision than family history or general health information. 

Promote Preventive Health Measures: Genetic insights can encourage policyholders to adopt healthier lifestyles or seek early medical interventions, potentially reducing long-term mortality risks. For example, patients identified with a predisposition to heart disease might be incentivized to participate in wellness programs. 

Enable Tailored Products: By leveraging genetic data, insurers can design personalized life insurance policies that address specific risks, improve customer satisfaction, and even create a competitive edge. 

The risks and ethical concerns 

Despite its potential, the use of genetic data in life insurance carries significant risks and ethical dilemmas.  

One major concern is adverse selection, which occurs when individuals are aware of their genetic risks while insurers are not. In such cases, high-risk applicants may disproportionately purchase life insurance, creating an imbalance in the risk pool. This “knowledge asymmetry” worries insurers, as it could lead to higher premiums for everyone or threaten the sustainability of their business models. 

Another critical issue is privacy and discrimination. Genetic data is deeply personal and, unlike lifestyle choices like smoking, is beyond an individual’s control. Critics argue that incorporating such data into underwriting practices could lead to discrimination, potentially pricing certain individuals out of the insurance market entirely.  

This raises ethical concerns about fairness and equity in access to life insurance. 

Regulatory gaps further complicate the matter. While the Genetic Information Nondiscrimination Act (GINA) protects genetic information in health insurance, life insurers are not consistently regulated at the federal level regarding the use of genetic data. State laws vary widely; for example, New York requires informed consent for genetic testing, whereas Vermont prohibits specific uses of genetic information. This patchwork of regulations creates uncertainty and inconsistency in the industry. 

The impact on medical research is another area of concern. Individuals may avoid participating in genetic research or undergoing genetic testing if they fear that such activities could jeopardize their insurability. This reluctance could slow advancements in genetic science and hinder efforts to improve public health outcomes. 

Here in the United States, life insurers are approaching the use of genetic data with caution. While some industry executives have expressed interest in utilizing this information, many are hesitant to act as first movers due to fears of public backlash and regulatory uncertainty. Meanwhile, scholars and policymakers advocate for balanced solutions that safeguard individual rights while ensuring the sustainability of life insurance markets. 

Potential solutions and recommendations 

To address the opportunities and risks of genetic data in life insurance, several strategies can be considered: 

Limited Access: Insurers could be allowed access to a narrowly defined set of high-risk genetic markers, ensuring that underwriting decisions are based on clinically actionable data. 

Universal Coverage Options: Governments could mandate a baseline level of life insurance coverage available to all, regardless of genetic risk, while allowing genetic information to influence premiums for additional coverage. 

Public Dialogue: Insurers, policymakers, and genetic researchers should engage in open discussions to build public trust and develop fair policies. 

Incentivizing Healthy Behaviors: Rather than penalizing individuals for genetic risks, insurers could offer discounts or incentives for those who take preventive measures to mitigate their risks. 

Final remarks 

The integration of genetic data into life insurance presents both profound opportunities and complex challenges. While it has the potential to enhance risk prediction and promote healthier behaviors, it also risks exacerbating inequalities and deterring participation in genetic research. 

As genetic science continues to advance, the insurance industry must tread carefully. Striking a balance between innovation, fairness, and privacy will require thoughtful regulations, collaborative efforts across sectors, and ongoing public engagement.  

By addressing these issues proactively, insurers can harness the power of genetic data while upholding their commitment to equitable and responsible practices. 

The claims process has always been a cornerstone of the insurance experience, and for many years, it has faced mounting challenges. From lengthy wait times, excessive paperwork, and miscommunications, traditional claims management often leaves policyholders frustrated. 

Until recently, insurtech companies like Insly and Prime Systems have been leveraging cutting-edge software and infrastructure to help insurance providers manage claims. These technologies enable real-time claims management, offering speed, accuracy, and improved customer satisfaction.  

Let’s dive first into the challenges of the claims process and explore how insurtechs and insurance providers are addressing them. 

The challenges of traditional claims processes 

The traditional claims process is often synonymous with inefficiency. Customers file a claim, then wait—sometimes for what feels like forever—for an adjuster’s response. Add unclear communication to the mix, and you’ve got a recipe for frustration.  

Some of the biggest challenges include lengthy processing times, a lack of transparency, and manual processes prone to errors. Claims can drag on due to all the steps involved: verifying documents, waiting for an adjuster, and getting multiple approvals. Policyholders often have no clue where their claim stands, leading to distrust and dissatisfaction.  

On top of that, insurers spend a lot on administration because they’re stuck in outdated ways of working. To make matters worse, fraud and data breaches become real risks without the right tools. 

The traditional system is far from perfect. Thankfully, real-time claims management is turning this around. 

How insurtechs are transforming claims management 

Insurtech companies are stepping up to the plate, bringing advanced technology to an industry that desperately needs a refresh. These innovators are tackling inefficiencies head-on and delivering solutions that make life easier for insurers and customers alike. Let’s break it down. 

Cloud-based platforms are revolutionizing claims processing. Companies like Prime Systems are helping insurers digitize claims submissions and automate tasks that used to eat up hours. With these systems, claims can be processed in just a few hours instead of days.  

Real-time updates keep everyone in the loop, so there’s no more endless waiting games. 

Aside from its uses in customer service and policy management, AI is also used in managing claims. Artificial intelligence tools are taking over repetitive, time-consuming tasks. They’re analyzing claims data to spot patterns and flag potential fraud before it happens. AI tools like Tractable can also verify documents and help assess damages faster than you can say “manual paperwork.” 

Mobile apps are another big win for customers. Large insurers have rolled out apps where policyholders can file claims, upload photos of damage, and get real-time updates—all from their phones. It’s a one-stop shop that makes dealing with insurance way less stressful. 

The Internet of Things (IoT) is also playing a huge role. Connected devices, like sensors in cars or smart home systems, provide instant data when accidents or damage occur. Let’s say a pipe bursts in your home. A connected device could alert your insurer right away, and they’d have the info they need to act fast. That means fewer headaches for you and quicker resolutions overall. 

Lastly, Blockchain technology is tackling fraud and security risks. By creating transparent, tamper-proof records of claims, blockchain ensures that insurers and policyholders are on the same page. No more worrying about data getting lost or tampered with—it’s all locked in. 

Benefits of real-time claims management 

Real-time claims management isn’t just about fancy tech—it’s about making life easier for everyone involved. First off, it’s fast. Claims that used to take weeks are now handled in hours or even minutes. This means you’re not left hanging, wondering what’s going on. 

Transparency is another big win. Customers can track their claims every step of the way, giving them peace of mind. No more feeling like you’re in the dark. For insurers, the automation of routine tasks means they’re spending less time on admin and more time helping their customers. Plus, AI and blockchain tools are spotting fraudulent claims before they become a problem, saving insurers a lot of money. 

All this adds up to a better experience for customers. When claims are handled quickly, accurately, and with clear communication, it builds trust and loyalty. And let’s face it—a happy customer is a loyal customer. 

Final thoughts 

Traditional claims processes have been stuck in the past for too long.  

Insurtechs are stepping in to modernize the system, and the results speak for themselves. Real-time claims management powered by AI, IoT, and blockchain is transforming how insurers and customers interact. It’s faster, more transparent, and way more efficient—everything today’s customers expect. 

As more insurers adopt these tools, the future of claims management looks brighter than ever. Real-time solutions aren’t just improving the process; they’re changing how people feel about insurance altogether.  

And in a world where speed and trust mean everything, that’s a big deal. 

The gig economy has been booming, and it’s no surprise why. From delivering food to designing logos, gig workers are reshaping the way we think about work. Whether you’re driving for Uber, freelancing on Upwork, or crafting art to sell on Etsy, gig work offers flexibility and independence that traditional jobs often can’t match.

But with all that freedom comes a question many gig workers don’t think about until it’s too late: what happens when things go sideways?

Let’s unpack the risks of the gig economy and explore insurance products tailored to protect gig workers, freelancers, and independent contractors.

What is the gig economy?

The gig economy is a fancy term for work that isn’t your typical 9-to-5. It includes temporary, flexible jobs often facilitated by digital platforms like DoorDash, TaskRabbit, and Fiverr.

Roughly 36% of Americans earn money through online gig platforms, and this trend is only growing.

The appeal is clear—gig work lets you call the shots. Want to work early mornings or late nights? You got it. Prefer to take a break during the day to hit the gym? No problem. But while the gig life is freeing, it doesn’t come with the safety net of employer-provided benefits like health insurance or workers’ comp.

The risks in the gig economy

Every gig worker knows that while freedom is great, it comes with risks.

 1. Lack of traditional benefits

Most full-time employees get perks like health insurance, paid time off, and retirement plans. Gig workers? Not so much. If you get sick or injured, you’re on your own.

 2. Injury on the job

Think about rideshare drivers. A car accident while working could leave you with repair bills, medical expenses, and lost income. And no, your regular auto insurance usually won’t cover it if you’re on the clock for a gig app (or it will cover it once before canceling the policy or forcing an endorsement).

 3. Income uncertainty

Gig work can be feast or famine. One week, you’re rolling in jobs and the next? Crickets. Without a steady income, it’s tough to handle unexpected expenses.

 4. Liability risks

Let’s say you’re a freelance photographer and a client trips over your equipment. If they sue for damages, you could be out thousands of dollars if you don’t have liability insurance.

On top of that, the damage to your equipment—potentially requiring a costly replacement—might have you wishing for the stability of a regular 9-to-5 job instead.

Insurance products for gig workers

The good news? There’s insurance out there designed just for gig workers. Let’s break it down:

 1. Health insurance

Health insurance is a must, and while it’s not handed to you on a silver platter in the gig economy, there are options:

• Marketplace health plans: The Affordable Care Act (ACA) provides plans you can buy on healthcare.gov. These plans might even come with subsidies to lower your premium costs.
• Stride Health: This company partners with platforms like Fiverr to help gig workers find affordable and flexible health insurance plans tailored to their needs.

 2. Liability insurance

When you’re your own boss, you’re also your own risk manager. Liability insurance can save you if you accidentally damage property or someone sues you for negligence.

• General liability insurance: Great for freelancers like writers, graphic designers, or consultants.
• Professional liability insurance: Perfect for anyone providing a service, like a tax preparer or web developer, to protect against claims of mistakes due to error and omissions (E/O) or unmet expectations.

3. Auto insurance for rideshare and delivery drivers

Regular car insurance won’t cut it if you’re driving for work. Many companies offer rideshare insurance endorsement, which covers you during that in-between time when you’re waiting for a fare or delivery request.

A recent study by the Journal of Safety Research revealed that one-third of rideshare drivers have experienced accidents while on the job, highlighting their significantly higher risk exposure compared to regular drivers.

4. Disability insurance

What happens if you’re injured and can’t work? Disability insurance provides a portion of your income while you recover. This is crucial for gig workers, who don’t have employer-provided sick leave.

 5. Income protection insurance

For gig workers whose income fluctuates, income protection insurance helps fill in the gaps. It’s a smart safety net for times when gigs are slow, like during a market downturn or a seasonal dip.

6. Business insurance bundles

Some companies like Insureon and Next Insurance offer insurance packages tailored for gig workers. These bundles may include a mix of health, liability, and property coverage.

Wrapping it up

The gig economy gives you freedom, but freedom doesn’t mean you should go unprotected. Whether you’re freelancing, delivering, or running your own business, insurance can save you a world of trouble when life throws you a curveball.

From finding health coverage through companies like Stride Health to ensuring you have rideshare auto insurance, taking the time to safeguard your work can keep your gig career on track.