The technological growth is set to revolutionize the insurance sector. The introduction of new technologies is expected to benefit insurance companies, agents and above all the insured themselves.
As the industry starts to adapt technological changes, traditional insurers are facing disruption. To remain in the completion, they need to keep up with new technologies.
In this article, we have listed a few technological trends that are creating a transformation in the insurance domain.
The Digitization of Processes
The insurance field is witnessing an innovative digitalization and is helping agents and companies in the various processes of registration, claim management and customer service.
For instance, insurers are encouraging good driving habits through apps based on artificial intelligence (AI) and offer incentives and discounts on premiums. Digitalization makes it possible for customers to have more relevant information, while also making the entire process faster, efficient and cheaper for everyone involved.
Connecting through smartphone applications, social media, and chat-bots is a new way to interact with customers – who look for convenience and personalization of the services. Companies that have adopted digital innovation are projected to build more personal relationships with their customers, while also improving service.
Technology has helped insurers and agents make their work faster and easier such as the use of chat-bots for answering customers’ questions, automatic filling out of forms, etc.
Over the years, the use of artificial intelligence is expected to increase. Moreover, it will help insurance companies in making decisions, determining prices and premiums.
The Internet of Things (IoT)
The internet of things uses telemetric devices and sensors for automation of processes, collection and interchange of data. This revolutionary technology can help insurance agents in a number of ways. Firstly, through continually updated data; the technology facilitates risk assessment, allowing efficient claim management and exact pricing. Secondly, the Internet of Things makes it easier to understand customers’ needs, thereby ensuring personalization of insurance products.
New Insurance Models
New opportunities are being created in the field of insurance – thanks for technological advancements. A need for new insurance models has been generated, and insurance products that never existed before are being created. One such example is of cyber insurance which protects both individuals & companies from digital attacks and hacking. Another example can be of the “all-inclusive” model, a single insurance package and not a set of specific, different policies.
All these InsurTech trends are expected to play a vital role in 2019. One can expect accelerating growth in digitalisation of the underwritings, automation of processes, etc.