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Insurance technology refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model.
The belief driving insurance technology companies and investments by venture capitalists in the space is that the insurance industry is ripe for innovation and disruption. Insurance technology is exploring avenues that large insurance firms have less incentive to exploit, such as offering ultra-customized policies, social insurance, and using new streams of data from Internet-enabled devices to dynamically price premiums according to observed behavior.