Will insurtech cost jobs?

Will insurtech cost jobs?

Will insurtech cost jobs? Insurtech may be the word on everybody’s lips at the moment, but what impact could the advent of tech have on insurance jobs?

As automation and other forms of technology are increasingly used in the industry many would think that jobs would be impacted but the founder of one insurtech firm thinks that the jobs being lost are already on the way out.

Scott Walchek, founder of on-demand insurance provider Trōv, told Insurance Business that when people ask whether insurtech will take away jobs from the industry, his first response is to suggest that a future that embraces technology will likely not have a place for certain jobs anyway.

“Whether we are doing it or another person is doing it, it is actually what the consumer wants. The consumer is signalling.

“You signal that you don’t want to ever talk to a human, you don’t want to go to a bank and talk to them about your services. It is the consumer that is signalling those things so it is a question of whether those jobs will exist in the future anyway?

“And the answer is probably not.”

Trōv, which allows consumers to arrange cover at the swipe of a smartphone, is currently available in Australia with plans to expand to the United States and Europe with further Asia Pacific launches also on the horizon.

In the second quarter of the year, the Australian insurance industry was boosted with a total of 2,300 new roles across the financial services and insurance sector, according to the Australian Bureau of Statistics.


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2 Comments
  • D Pearce 3/11/2016 1:54:09 PM
    Trov and Insurtech can justify their existence in the market place any way they choose to, but, taking advantage of a consumer's desire to avoid discussing their insurance needs amounts to these firms being purely motivated by money. The fact they only provide general advice means the term "Caveat emptor" (let the buyer beware) very much applies here.

    Having little to no knowledge about insurance products means people actually need to discuss their insurance needs. The only way this can be done is to talk to a qualified insurance professional. Insurtech, Trov and the alike are only taking advantage of consumers. ASIC, APRA and FOS are all advocates for consumer protection, but, I do not see how these groups services advance when they rely upon general advice to limit their exposure.

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  • Nick b 10/03/2017 3:01:38 PM
    Consumers are more and more sophisticated, they have access to wider and more reaching information. Travel agents used to be prevalent, but consumers took the risk. There will always be a space for professional knowledge, however lets not kids ourselves insurance is not rocket science. Govern it robustly and let the customer decide.
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