Last Updated: 2/18/2026

Insurtech refers to new technologies that make buying, using, and understanding insurance easier, faster, and more personalized, and can help automate and streamline traditional insurance company practices. Insurtech helps consumers by making insurance more convenient and responsive. Digital tools simplify buying and managing policies, speed up claims, help prevent losses, and offer pricing that can better match individual behaviors.

The insurance industry is changing rapidly due to advances in big data, connected devices, mobile tools, artificial intelligence (AI), and automation. These technologies are reshaping how insurers design products, assess risk, and interact with consumers. People increasingly expect faster service, clearer information, and more personalized options.

Technology‑driven innovation in insurance now influences nearly every part of the insurance process, from how policies are sold to how claims are handled. Investment in insurtech continues to grow as companies explore tools that improve efficiency and customer experience. Regulators are working to understand these developments and ensure consumer protections keep pace.

Many insurtech tools are already commonly used by consumers. 

Connected Devices/Internet of Things:

• Usage‑based auto insurance uses telematics to track driving habits and tailor pricing.
• Smart‑home sensors detect leaks, smoke, or unusual activity to reduce losses.
• Wearables, like fitness trackers, support wellness programs and influence some health or life insurance offerings.
   

Digital Assistants & Chatbots:

• Chatbots provide quick help with billing, policy questions, and claims.
• Voice assistants like Alexa or Siri can offer basic policy information.
• Mobile apps and photo-based claims tools let users submit documents instantly and track progress

Insurtech offers many advantages for consumers, including greater convenience through digital tools that simplify purchasing and managing insurance, faster service supported by automation and mobile features, personalized pricing made possible by telematics and wellness-based programs, and improved loss prevention through smart devices that provide early warnings. At the same time, these innovations introduce risks such as the collection of sensitive personal data, heightened cybersecurity concerns, potential bias in AI-driven decisions, and limited transparency around how consumer information is used. Understanding both the benefits and risks helps consumers make informed choices as technology becomes more integrated into insurance.

State insurance regulators continue to enhance their oversight of emerging technologies as the insurance sector becomes more data‑driven and reliant on advanced tools such as artificial intelligence, third‑party models, and supervisory technology.

The NAIC’s Innovation, Cybersecurity and Technology (H) Committee remains the central forum for monitoring technological developments and assessing their impact on consumers, insurers, and the broader regulatory framework. Current efforts include helping regulators review AI systems, developing guidance, and exploring methods to test models for accuracy, fairness, and potential bias.

The Big Data and Artificial Intelligence (H) Working Group continues implementing the NAIC Model Bulletin on insurers’ use of AI. Current efforts include helping regulators review AI systems, developing guidance, and exploring methods to test models for accuracy, fairness, and potential bias.

The Third‑Party Data and Models (H) Working Group studies how insurers use external data providers and models. It examines issues such as transparency, governance, and accountability when key decisions depend on outside vendors. The group is reviewing possible regulatory gaps and considering expectations for insurers’ use of third‑party tools.

The SupTech/GovTech (H) Subgroup focuses on using technology to improve regulatory work. This includes tools for market analysis, filing review, anomaly detection, and workflow automation. Its efforts help departments strengthen oversight and adapt to a rapidly evolving marketplace.

Across these groups, regulators are also focusing on broader themes such as data quality, cybersecurity risks, explainability of models, and consistency in regulatory expectations across states. Through research, national meetings, and educational initiatives, the NAIC continues to help regulators stay informed and support the safe, effective integration of new technologies in insurance markets.