The introduction of innovative technologies in the insurance industry has been exponentially rising over the past decade. Just like the other industries, the implementation of digitized solutions in the insurance sector is an inevitable component. It benefits both the insurers and insureds and strengthens the bonds between them.
Customers these days expect customized products and fast services. They are more inclined towards digital solutions for availing quotes, filling forms, making payments, etc. Insurance technology helps insurance providers in delivering up to their expectations. It enables them to provide better products and services.
Observing the current scenario, it is likely that customers’ expectations will soar in the future. So, the use of technology will witness immense growth in the coming times. Many insurance giants have already begun leveraging some of these Insurtech instruments to combat the present challenges and beat the competition.
These technologies are time and cost-effective and improve work efficiency. They enable insurers to generate a system that can be readily used by teams to communicate effectively and increase productivity. The insurance technologies include cloud computing, Internet of Things (IoT), advanced analytics, telematics, GPS, mobile phones, Artificial Intelligence (AI), Machine Learning (ML), smart contracts, and digital platforms.
In this blog, we will discuss the top 5 building blocks of the insurance technology enabling digital power in the insurance domain.
Top 5 Insurance Technology
1. Data Analytics
Insurance companies collect a lot of data related to their target audience, customers and other business elements. Appropriate analysis of this data is required to obtain better results. The predictive analysis of data provides forecasts about various important aspects. This analysis helps in identifying market trends and meet present and upcoming insurance business requirements. It aids in assessing the risk factors associated with various lines of business. It even aids in judging the risk of fraudulent claims. Leveraging data analytics tech solutions, the companies can manage various types of claims and identify any pattern. It makes it possible to get new customers on-board by analyzing the trends in business.
2. Artificial Intelligence (AI)
One size doesn’t fit all and the insurers have to realize it. The millennials look for personalized solutions that satisfy their requirements. Artificial Intelligence assists insurers to achieve this. It helps insurance carriers to design and develop customized solutions that meet individual clients’ needs.
Incorporation of AI technology reinvigorates the underwriting process. It improves the entire claims settlement and makes it more efficient. It allows accessing large amounts of data within a short time and removes the possibility of human errors. Also, the insureds can take advantage of an insurance company’s AI-based system to report claims accurately.
The use of AI optimizes business operations and enhance the customer experience. It castes an impact on the identification and assessment of risks in the insurance business. It automates processes by storing files digitally in the cloud and transforms the process significantly. It helps identify new sources of revenue and boost profitability.
These days customers connect with their insurers via chatbots. It is believed that by the year 2025 more than 90 per cent of all customer communications will be managed by chatbots.
Chatbots are AI-based insurance technology that helps insurance companies interact with the customers in real-time. It enables intelligent communication with the clients and resolves issues generally faced by them. They save a lot of time and resources of insurance companies providing them efficient means to clear customer’s doubts.
Moreover, the Chatbots can accomplish the usual insurance process like policy application, filing claims, and much more. They can guide the customers about various processes just like human agents. It provides a personalized experience to the customer which is significant to build trust.
4. Internet of Things (IoT)
Internet of Things is the data source that improves data. It mechanizes the data sharing process and enables collection of information via IoT devices. The insurers can use data shared by the customers and understand their requirements. It allows insurance providers to acutely and accurately model risk and underwrites policies.
It assists insurance providers to frame policy decisions, decide rates, mitigate risk and even prevent looses. The Internet of Things supports other insurance technology as well. It helps procure first-hand data which improves the quality of risk assessment. It supplies insureds with additional power to directly impact their policy price.
Blockchain is a Distributed Ledger Technology (DLT) that allows spontaneous verification of transactions. It is an innovative technology that can digitize, codify and place any type of information on the distributed database that is permanent.
It helps insurance companies maintain authentic record and audit track of transactions and agreements. It offers a single source of truth and avoids frictions in the business. It establishes a degree of transparency and accountability using solutions such as smart contracts.
Blockchain makes data reconciliation easier. It saves the time spent on uncovering the information and develops accuracy. It enables efficiency gains and reduces cost throughout the value chain. The shared industry tasks and human-free work system enabled by Blockchain generates more seamless processes and reduce labour. The improvements in speed and accuracy build customers trust and provide more positive customer experiences.
The insurance technologies are the eminent pillars on which the modern insurance businesses are based. They are opening new capabilities in the insurance landscape and helping the insurers reach customers’ expectations. These Insurtech solutions have armed insurance providers and are continually enhancing the customer experience.