# Changes to the Insurance Model – Prevention and Cure? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-07-27 Category: INSURANCE Category URL: https://financedigest.com/category/insurance Meta Title: Revolutionising Insurance: From Risk Resolution to Risk Meta Description: Discover how the insurance industry is shifting towards preventing risks with new technologies and innovative approaches. Learn more about the future of URL: https://financedigest.com/changes-to-the-insurance-model-prevention-and-curehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/dsc2039-2216-1736843658167-compressed.jpg) What is Insurance? An old boss of mine articulated it nicely when he said it’s about putting customers lives back on track when things go wrong. Now that is great, in fact in my opinion it’s more than great, but what if it was even more than that … what if it was about helping our customers to minimise the risk in the first place?A shift from the traditional insurance model of risk resolution to a dual risk resolution & risk prevention model. ![Steve Whitfield](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/stevewhitfieldbwsmd-1736843658158-compressed.jpg) Steve Whitfield Over the last few years we have seen a huge explosion in the use of new technologies across the financial services landscape whereas in [insurance](https://www.financedigest.com/insurers-beware-fraudsters-love-digital.html "INSURERS BEWARE: FRAUDSTERS LOVE DIGITAL!") we have been focusing on the adoption of “digital,” mainly within the distribution & to a lesser extent the servicing channels. However, over the last 12 months we are [seeing a real increase in new insurance](https://www.financedigest.com/why-are-we-seeing-a-flurry-of-exits-by-global-insurance-players-from-asia.html "Why are we seeing a flurry of exits by Global Insurance players from Asia?") start-ups and the birth of “Insurtech. Looking in a bit more depth at these start-ups they tend to fall into one of 2 distinct camps, those who are creating new digitally led propositions (essentially selling a traditional [insurance policy](https://www.financedigest.com/insurance-types-of-coverage-and-how-to-choose-the-right-policy.html "Insurance: Types of Coverage and How to Choose the Right Policy") with similar processes) which to me looks& feels like more of a marketing play. Then there are those that are starting with a blank piece of paper, [companies like Lemonade or Friendsurance who are introducing P2P insurance](https://www.financedigest.com/building-stronger-relationships-with-insurance-companies.html "Building Stronger Relationships With Insurance Companies"), or the likes of Trov & Cuvva who are introducing “On demand Insurance”. It is this second area that really excites me and potentially poses the [biggest threat](https://www.financedigest.com/credit-squeeze-biggest-threat-to-economic-outlook-fidelity-international-says.html "Credit squeeze ‘biggest threat’ to economic outlook, Fidelity International says") or opportunity to the more traditional providers. **But does this go far enough?** Imagine if we could (and we can) use technology to prevent claims occurring in the first place, or at the very least minimise the impact of a claim. Imagine if we could turn the [whole Insurance](https://www.financedigest.com/scratched-ev-battery-your-insurer-may-have-to-junk-the-whole-car.html "Scratched EV battery? Your insurer may have to junk the whole car") model on its head. We currently have connected houses – you can already do [things like turn](https://www.financedigest.com/techie-turn-offs-top-7-things-that-put-talent-off-applying-for-tech-roles.html "Techie turn-offs: Top 7 things that put talent off applying for tech roles") your lights on, check your doors are locked remotely. Companies like Augury create sensors that identify water leaks which in [turn](https://www.financedigest.com/france-to-turn-off-hot-water-in-public-offices-to-save-energy.html "France to turn off hot water in public offices to save energy") helps prevent or minimise the impact of an Escape of Water claim. These claims [currently cost the industry](https://www.financedigest.com/shelf-stable-soup-market-2022-outlook-current-and-future-industry-landscape-analysis-2028.html "Shelf-stable Soup Market 2022 Outlook, Current and Future Industry Landscape Analysis 2028") ~ £630m pa in domestic claims alone as well as clearly having a significant impact on our customers. This surely presents a [huge opportunity](https://www.financedigest.com/quad-flat-no-lead-packaging-market-huge-growth-opportunity-between-2017-2027.html "Quad-Flat-No-Lead Packaging Market Huge Growth Opportunity between 2017-2027") for the GI business to own this revolution. If I was a customer who was offered a [risk prevention policy that paid out when I needed](https://www.financedigest.com/21690.html "BRIGHTON, England (Reuters) – Britain needs to be more “clear-eyed” about the risks") it but gave me more…. gave me the peace of mind that I was less likely to suffer a claim in the first place well I might just go for that! Hopefully if I ask the question “what is Insurance?” in 5 years I might just get a different answer. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---