InsurTech is a merger of two words, “insurance” and “technology”, inspired by the word “FinTech”. It solely means using technology innovations designed to squeeze out efficiency and savings from the current industry model. 

The insurance industry is ripe for disruption and innovation, which drives InsurTech companies and investments by venture capitalists in the space. InsurTech has the platform to explore avenues like social insurance, offering ultra-customized policies, and using new mediums of data from internet-permitted devices to dynamically price premiums according to observed behaviour, which large insurance firms have less incentive to explore.