From time to time, we've been asked to explain the difference between InsureTech and FinTech, and with which One Inc identifies. As National FinTech Day (August 20th), today seems to be the perfect opportunity to formally define both fields and how they are related.
What is InsureTech?
InsureTech (Insurance Technology) refers to the emergence of modern technology in the insurance industry. Generally speaking, InsureTech encompasses:
- Tech companies that are bringing the insurance industry into the digital age,
- Insurance companies that have embraced technology as an integral part of business operations, and
- Specific technology used in insurance, such as digital payments processing software, claims processing apps, and customer communications.
As a relatively new industry classification, the abbreviation can vary slightly, including:
What is FinTech?
FinTech (Financial Technology) is similar to InsureTech, but it incorporates a broader scope of financial institutions. In addition to insurance, FinTech includes banks, financial planners, accountants, and other financial businesses.
Is One Inc InsurTech or FinTech?
In a word: Both.
As an insurance-specific digital payments software provider, One Inc is primarily considered an InsureTech company, which is a subcategory of FinTech.
*This is One Inc's preferred spelling of insurtech. But until there is a complete industry consensus, you can accurately use any of the spellings listed above. This article deliberately uses "InsureTech" to emphasize its analogous relationship to FinTech, which is the preferred spelling and capitalization for combining Financial and Technology..
If you would like more information about One Inc's insuretech products and how we can help you modernize your operations, contact us today.