Just like other industries, technology is leaving significant footprints in the insurance sector too. Innovations and digital interactions are modernizing the industry and refining its ways of operation for good.
It’s not just streamlining insurance business processes, but technological advancements are also enhancing customer experience. Insurance companies need to adopt new technologies if they want to sustain and grow in a digitizing world.
We have listed a few ways in which technology is helping the industry advance.
1. Technology is making underwriting and claims quicker
Traditionally, insurance companies used to have a large network of underwriters and claim adjusters to assess how much an individual’s policy should cost and the amount to be paid in case any claims are made. These processes required customers to provide a lot of documents for assessment, making the entire procedure time-consuming.
Harnessing the power of big data analytics, the process is being made faster and more efficient. Insurance companies can now compare customers’ data digitally with thousands of other users with similar backgrounds, making underwriting more accurate.
2. Telemetrics offer transparency and fairer pricing
Telemetrics has become the talk of insurance town nowadays. The Internet of Things (IoT) linked sensors help insurers get customers’ insights and valuable data that can be very useful in assessing risk. While drivers may hesitate at the prospect of their driving behaviour being registered digitally, sensors are being used as a preventive measure to highlight problems before they end up causing massive damages.
The connected home is another technological advancement insurance companies are focusing on. Insurers, nowadays, are partnering with sensor startups to protect their clients’ homes. Proactive fire, leak-detection, automatic water shutoff systems, and break-in detection systems can help home-owners reduce risks. Similarly, insurance companies can save on claims, keeping premium costs low.
3. Technology helping insurers better identify fraud
To provide a quick and efficient service, there are chances for fraudulent claims to slip through the net, especially if human assessors fail to check for warning signs. This brings insurance companies in a difficult situation. But now, underwriters and claim adjustors can highlight foul play – thanks to evolving big data analytics tools. Analytics generally search through massive amounts of data submitted by the clients and can help insurers note suspicious patterns.
In a Nutshell
The insurance industry has already entered a new technological renaissance. A lot of insurers are advancing their systems and processes to keep a hold of tech-savvy consumers who expect their insurance to be as easy and secure just like other aspects of their lives.