InsurTech Glossary

The InsurTech industry is vast and there are so many terminologies used in the industry that are not known to us.

We have formulated the following list of terms to give you a better understanding of the InsurTech industry as a whole.

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Key InsurTech Terminologies

Letter A to Letter F

AI (Artificial intelligence)

Artificial intelligence (AI) plays a significant role in the InsurTech industry by improving underwriting accuracy, detecting fraud, streamlining claims handling, enhancing customer service through chatbots and virtual assistants, analyzing data for insights, and enabling more accurate risk assessment. AI eliminates bias in underwriting, identifies fraudulent activities, speeds up claims processing, provides personalized customer service, and helps insurers make data-driven decisions.

API (Application Programming Interface)

An Application Programming Interface (API) is a set of defined rules and protocols that enable different software systems or applications to communicate with each other seamlessly. APIs act as a bridge between applications, allowing them to access and exchange data and features from other applications, services, or operating systems.

Automated underwriting

Automated underwriting is the process in which robotic process automation (RPA) and artificial intelligence (AI) software are used to underwrite the risk of potential clients in the insurance industry. It involves the use of advanced AI and machine learning (ML) technology to evaluate risk, determine coverage, and set premiums for clients.


Bancassurance is an arrangement between a bank and an insurance company, where the insurance company sells its products to the bank’s customers. Bancassurance plays a significant role in the InsurTech industry by expanding customer reach, providing convenience, enabling cross-selling opportunities, and creating an efficient distribution channel for insurance products.

Big data

Big data refers to large, diverse sets of information from various sources that grow at ever-increasing rates. It encompasses the volume, velocity, and variety of data points being covered. In the InsurTech industry, big data holds significant importance as it allows for the analysis of vast amounts of data to uncover insights, improve decision-making, and drive strategic business moves.


A chatbot is a computer program or software that simulates human conversation through text or voice interactions. In the InsurTech industry, chatbots play a significant role by automating customer interactions, handling simple tasks, and providing support 24/7. The significance of chatbots lies in their ability to save time, improve efficiency, enhance customer experience, and reduce support costs for insurance companies.

Claims automation

Claims automation is the use of technology to automate the handling and processing of insurance claims, resulting in streamlined processes, reduced manual work, improved efficiency, and enhanced customer experiences. By leveraging machine learning, artificial intelligence, and natural language processing, automated claims processing software can collect and analyze data from various sources, allowing insurers to process claims faster and more accurately.

Cloud computing

Cloud computing is the delivery of computing services, including storage, applications, and data processing, over the internet. In the InsurTech industry, cloud computing holds significant significance as it offers numerous benefits and applications. It enables insurance companies to streamline operations, improve data management, enhance business continuity, and reduce costs.

Cognitive computing

Cognitive computing is a field of computer science that aims to design systems capable of reasoning and learning like humans. In the InsurTech industry, cognitive computing holds significant significance as it enables the simulation of human thought processes and assists humans in finding solutions to complex problems.


Crowdsurance is a concept that involves individuals coming together to share risks and provide insurance coverage for each other. By leveraging technology and peer-to-peer networks, Crowdsurance platforms enable individuals to pool their resources, share risks, and provide coverage tailored to their specific needs.


Customer-centricity refers to a strategic approach that focuses on aligning the development and delivery of insurance products and services with the needs and expectations of customers. It emphasizes putting the customer at the center of business operations and decision-making processes.

Customer experience (CX)

Customer experience means the overall perception and interactions that customers have with an insurance company throughout their journey, from initial engagement to ongoing support and service. It holds significant significance as it directly impacts customer satisfaction, loyalty, and retention.

Data analytics

In the insurtech industry, data analytics holds significant significance as it enables insurance companies to uncover hidden patterns, correlations, and market trends. The significance of data analytics lies in its ability to drive informed decision-making, improve business operations, and enhance profitability.

Data privacy

Data privacy is the protection and proper handling of personal and sensitive information, ensuring its confidentiality and security. In the InsurTech industry, data privacy holds significant significance as it safeguards personal integrity, promotes trust in digital interactions, and upholds fundamental rights.

Digital claims processing

Digital claims processing refers to the use of technology and artificial intelligence (AI) to collect, investigate, and manage insurance claims. It involves digitizing and automating various stages of the claims process to improve efficiency, accuracy, and customer experience.

Digital distribution

Digital distribution is the use of digital channels and technologies, such as websites, mobile apps, and social media, to sell insurance products and services to customers. It is a strategy of delivering, accepting, and providing insurance products and services through digital means and on multiple channels.

Digital ecosystem

A digital ecosystem refers to a network of interconnected stakeholders, including insurers, agencies, industry partners, and customers, enabled by data and technology. It is a dynamic and changing network that supports the entire policy lifecycle, from quote to claim management.


Digital insurance

Digital insurance is the use of digital technologies to transform the insurance industry. It involves the digitization of various aspects of the insurance value chain, including claims processing, underwriting, policy administration, and distribution. Digital insurance is transforming the insurance industry by improving efficiency, accuracy, and customer experience.

Digital platform

A digital platform refers to a technology-driven infrastructure that enables insurers to deliver insurance products and services to customers through digital channels. It serves as a central hub where various stakeholders, including insurers, agents, brokers, and customers, can interact and conduct insurance-related activities.

Embedded insurance

Embedded insurance is the integration of insurance products and services into non-insurance platforms or products, such as e-commerce websites or digital sales. It is a form of digital bundling that enables partners from virtually any industry to offer insurance policies as an add-on or feature, generally as part of a digital sale.

Letter G to Letter L


Gamification refers to the use of game design elements to improve customer experience and engagement. Gamification is being used in the insurtech industry to improve customer experience, engagement, and education. By leveraging game design elements, insurers can create a more engaging and user-friendly experience for customers, leading to increased customer satisfaction and loyalty.


Indemnity is a contractual obligation of one party (the indemnitor) to compensate the loss incurred by another party (the indemnitee) due to the relevant acts of the indemnitor or any other party. Indemnity insurance is a comprehensive form of insurance compensation for damages or loss, and it amounts to a contractual agreement between two parties in which one party agrees to pay for potential losses or damage caused by another party.


Insurability refers to the degree to which a person or a company is deemed insurable by an insurance company. It is an assessment of the potential risk that a given client would have and whether they meet the criteria set by the insurance provider.

Insurance marketplace

An insurance marketplace, also known as a health insurance marketplace or exchange, is an organization or service that helps individuals, families, and small businesses compare, enroll in, and purchase health insurance plans.


Insurers, also known as insurance companies or insurance carriers are entities that provide insurance. They offer financial protection or reimbursement to policyholders against specific contingencies and perils. Insurers pool the risks of their clients to make insurance more affordable for the insured.


Insurtech is a term used to describe the use of technology innovations designed to find cost savings and efficiency from the current insurance industry model. It is a combination of the words, “insurance” and “technology,”. Insurtech promotes efficiency by using technology such as data analysis, IoT, and AI, allowing products to be priced more competitively and make work more efficient. Insurtech is used to process claims more effectively, evaluate risk, process contracts, or manage policies, etc.

InsurTech accelerator

An Insurtech accelerator is a program or organization that supports and nurtures early-stage insurtech startups, providing them with resources, mentorship, funding, and networking opportunities to help them grow and succeed in the insurance industry.

InsurTech disruptor

An Insurtech disruptor is an insurtech startup that is using technology innovations to challenge and transform the traditional insurance industry model.

Internet of Things (IoT)

The Internet of Things (IoT) refers to a network of physical objects, devices, machines, or people that are interconnected and can exchange data with each other and the cloud without requiring human-to-human or human-to-computer interaction.

Insurance Value Chain

The insurance value chain refers to the set of activities and processes that insurance companies perform to deliver insurance products and services to the market. It encompasses the various stages involved in the insurance business, from product development and underwriting to sales, claims management, and customer service.

Legacy systems

Legacy systems in insurance refer to outdated and obsolete computer systems, hardware, and software that are still in use by insurance companies. These systems are critical to the day-to-day running of insurance organizations, but they lack many of the capabilities of modern and cloud-based solutions. The development of some of these systems goes back as far as the 1970s and 1980s. Legacy systems are a major roadblock for enterprises undergoing a digital transformation.

Letter M to Letter R

MGAs (Managing General Agents)

Managing General Agents (MGAs) are specialized types of insurance intermediaries that perform various business functions on behalf of insurance companies.


Microinsurance is a type of insurance designed for low-income individuals and families in developing nations. It offers coverage to low-income households or individuals who have little savings and is tailored specifically for lower valued assets and compensation for illness, injury, or death.

On-demand insurance

On-demand insurance is a type of insurance that offers policyholders the flexibility to turn coverage on and off and only pay for the policy when it is active. It is designed to be more affordable and accessible to low-income individuals and families in developing nations.


Omni-channel refers to a customer engagement and marketing approach that aims to provide a seamless and unified experience across all channels, platforms, and devices. It involves integrating various channels, such as websites, mobile apps, social media, email, physical stores, and more, to create a consistent and cohesive brand experience for customers.

Open insurance

Open insurance refers to an approach in the insurance industry that involves sharing and consuming data and services through open APIs (Application Programming Interfaces) to create more appealing value propositions for customers. Open insurance aims to provide a more transparent, efficient, and customer-centric insurance experience by enabling insurers to share data and services with other companies and platforms.

PaaS (Platform as a Service)

Platform-as-a-Service (PaaS) is a cloud computing model where a third-party provider delivers hardware and software tools to users over the internet. PaaS is a complete development and deployment environment in the cloud, with resources that enable users to deliver everything from simple cloud-based apps to sophisticated, cloud-enabled enterprise applications.

Peer-to-peer insurance

Peer-to-peer (P2P) insurance is a type of insurance where a group of individuals pool their premiums together to insure against a risk. P2P insurance is a risk-sharing network that mitigates the conflict that arises between a traditional insurer and a policyholder when an insurer keeps the premiums that it doesn’t pay out in claims.


Personalization refers to relevant and customized experiences to insurance customers throughout their lifecycle. It involves tailoring pricing, offers, and messages to individual customers at the right time.

Predictive modeling

Predictive modeling is the use of data mining, statistics, artificial intelligence, machine learning, and other techniques to analyze large datasets and generate predictions about future events and outcomes in the insurance industry.

RegTech (Regulatory Technology)

 Regulatory technology (RegTech) refers to the use of advanced technology that helps insurance companies comply with regulatory requirements in a more streamlined and efficient manner. Regulatory technology in insurance technology is a critical tool that enables insurers to comply with regulatory requirements in a more streamlined and efficient manner.

Risk assessment

Risk assessment refers to the process of evaluating and analyzing the potential risks associated with an insurance policy or claim. Insurance companies use risk assessment to determine the level of risk associated with a policy and to calculate the appropriate premium amount for the insured individual.

Risk management

Risk management is the process of identifying, assessing, and controlling potential risks that insurance companies face in their operations. It involves utilizing technology, data analysis, and strategic decision-making to minimize the negative impact of risks and protect the financial well-being of the company.


A robo-advisor refers to the use of automated, algorithm-based systems to provide financial advice and services in the insurance industry. These systems use artificial intelligence and machine learning algorithms to analyze customer data, assess risk profiles, and recommend insurance products and coverage options.

Letter S to Letter Z

SaaS (Software as a Service)

SaaS stands for Software as a Service. It is a cloud computing model where software applications are provided and accessed over the internet on a subscription basis. Instead of purchasing and installing software on individual computers or servers, users can access and use the software through a web browser. SaaS eliminates the need for users to manage and maintain software infrastructure, as the software provider handles all the necessary updates, security, and maintenance.

Smart contracts

Smart contracts are self-executing contracts with the terms of the agreement directly written into lines of code. These contracts are stored on a blockchain network, which ensures transparency, security, and immutability.


Telematics in insurance technology refers to the use of technology, such as GPS-based devices and sensors, to collect and analyze data about a policyholder’s driving behavior. Insurance companies use telematics data to assess risk profiles, personalize insurance premiums, and offer usage-based insurance (UBI) programs.

TPAs (Third-Party Administrators)

TPA stands for Third-Party Administrator. In the insurance industry, TPAs are independent organizations that provide administrative services on behalf of insurance companies. They handle various tasks, such as claims processing, policy administration, customer support, and data management. TPAs act as intermediaries between insurance companies and policyholders, ensuring smooth operations and efficient service delivery.


Underwriting in insurance refers to the process of assessing and evaluating risks associated with insuring individuals or entities. Insurance underwriters analyze various factors, such as the applicant’s age, health, occupation, lifestyle, and claims history, to determine the likelihood of a claim being made and the appropriate premium to charge. Underwriters use statistical models, actuarial tables, and historical data to calculate risk and make informed decisions about accepting or rejecting insurance applications.

Usage-based insurance

Usage-based insurance (UBI) is a type of insurance coverage that considers an individual’s actual usage or behavior when determining premiums. UBI programs use telematics technology to collect data on driving habits, such as mileage, speed, and braking patterns. This data is used to assess risk and calculate premiums that are more personalized and reflective of the policyholder’s driving behavior.

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