Industries continue to adjust their customer-related marketing propositions and business models to stay in business and remain profitable. And the insurance industry is no exception to this. Insurers are reviewing their messaging and focus to better inform and connect with targeted markets. Plus, to better address the changes related to buying behaviors. On top of that, some technology trends are set to reshape the very nature of insurance products. The insurance industry is preparing to face a digital future. Technology will play an even more critical role in distributing and selling insurance products in this new era.
Here are the key technology trends in the insurance industry.
1. Artificial Intelligence (AI)
Insurers are already using AI to help with policy administration, underwriting, and fraud detection. In the future, AI will be used to develop personalized policies for customers based on their individual needs. AI can also help insurers develop new products and services. For example, AI can be used to create a customer profile that includes data on the customer’s age, gender, occupation, credit score, and driving history.
Insurers can then use these pieces of information to recommend products and services that are specifically tailored for the customer. Insurers can also use AI to monitor their customers’ usage of services and products. They can then analyze the data collected from this monitoring to improve existing offerings, develop new ones, and identify fraudulent claims. As AI evolves, insurers will deal with an ever-growing volume of customer information more efficiently, especially that rates for insurance become competitive.
2. IoT
The Internet of Things refers to the billions of devices connected to the internet. Insurers are starting to tap into the vast amount of data and information generated by these devices. The future is that this technology will be used to increase the number of insured individuals, control claims costs, identify fraudsters, and improve customer relationships. The first step for insurers is to collect all data from IoT devices. These include smartphones, computers, and wearable technology like Fitbit.
The next thing that the insurance company needs to do is analyze this data to understand its potential value; it’s kind of like finding a treasure map with an X on it. Big Data is one of the essential resources insurers have to make better and well-informed decisions. The data collected from IoT devices can help identify patterns and trends, which traditional data sources like surveys cannot do.
Once insurance companies understand the value of the data, they can use it to improve their business operations. For example, claims adjusters can use mobile devices to access a map of the accident location at any time, reducing delays and improving customer satisfaction. Life insurance companies can use data from IoT devices to see if the policyholder is still alive.
For example, a smart bracelet that monitors vital signs and sends data to an insurance company could be used as proof of life for long-term policies with no annual renewals. IoT will play an essential role in advancing insurance-related processes, such as risk prevention, advisor activation, and customer retention.
3. Robotic Process Automation (RPA)
RPA involves software robots that use artificial intelligence algorithms to process repetitive administrative tasks like payment processing or customer service inquiries. In the future, RPA will be used to speed up and automate the claims process. RPA is becoming increasingly popular in the insurance industry. The technology can help insurers speed up processes, reduce costs, and improve customer satisfaction.
In the future, RPA will be used to automate the claims process. It will help insurers save time and money while improving customer service. Insurers who are not currently using RPA should consider implementing the technology in the near future. Robotic process automation is still a relatively new technology. While it’s not yet being used widely, the software robots have been able to complete some very complicated tasks with accuracy and speed.
Many believe that in the future, RPA will be used by insurance companies to automate their claims processes and other areas of business operations. By automating these routine operations, insurers can ensure greater accuracy in data collection. In addition, this will free up employees to work on more critical tasks, such as developing new products or services and improving customer relationships.
Final thoughts
These tech trends have the potential and power to change some of the core functions and underlying inputs of insurance products. Insurers that don’t invest in these trends will find it hard to survive in the modern era. They must take advantage of these opportunities that drive growth and new ideas. Invest in reshaping or transforming the consumer’s journey in choosing an insurance policy and determining rates for the policy.
