The insurance industry is finally in the spotlight after being in the shadows for many years. Though the industry hasn’t evolved much, technology is helping it advance more than it has in centuries.
The oldest insurance companies around the world have started focusing on new technological trends. Insurers are more inclined towards selling interactive policies that keep the fitness record and health data of users through wearable devices and smartphones. Prudential Financial, a well-known American insurance firm is trying to reach customers directly for the first time, offering insurance products through its website. Earlier, the insurer used to sell policies exclusively through its vast network of advisers.
In the past few years, the industry has witnessed a huge sea change. Insurance companies are turning to new technologies like artificial intelligence based “virtual assistants” to augment underwriting decisions. The use of sophisticated data analysis to compare policy rates is another example that shows technology has reached some sorts of advancements. Insurers are also using drones to evaluate insured property damage.
Tech changes the game! What should insurers look for?
As the industry is on the brink of technology-driven changes, insurers need to rethink their customer engagement model. Consumers, nowadays, are integrating digital experiences into their everyday lives. They expect their relationship with insurers to be more simple, direct and intuitive. Moreover, they want insurance companies to develop innovative products that apply technology-driven capabilities.
Insurance companies should focus more on connected sensors that use the Internet of Things (IoT). This will help them collect new data sets and assess risk in completely different ways, thereby reshaping products and reduce global risk pools.
Insurers must build new business models that focus on meeting consumers’ expectations. Moreover, they should use new technologies to improve the ways they assess risk. Insurance companies with the foresight to identify new game-changing technology will prove to be the biggest winners.
In a Nutshell
The insurance industry driven by technology, new business models and data, is expected to look completely different from what it does today in the next ten years. Insurers that are successful in grabbing these opportunities are likely to become the industry’s leaders. Those who fail to invest in new technology are sure to be left behind.