Top 5 InsurTech Trends Disrupting the Insurance Industry
For a long time, the traditional insurance model has been resilient to changes and industry evolution.
But now, it is starting to feel the digital effect to either become market winners, augment corporate earnings, or boost the overall product and service value. Quite honestly, with evolving customer demands, bleeding-edge technologies changing the way businesses offer products to their customers, and competitive market trends redefining insurance returns- the entire industry is under a transformation spell.
From data analytics to automation, several companies are challenging the status quo by employing AI insurance technologies to boost customer satisfaction, digitize their existing business, and significantly reduce costs across the value chain. The goal, however, remains the same- meeting customer expectations, lowering product costs, and boosting growth, all of which can be achieved by marrying digital technologies with the traditional insurance setup. And this is where InsurTech comes into the picture.
Here are the few technologies that insurance consulting enterprises are implementing.
#1: Applied RPA and AI insurance
While several insurance carriers are still experimenting, some have truly scaled their AI insurance capabilities across the enterprise. Not only does AI insurance help automate and accelerate time-consuming, mundane tasks, but they reengineer customer lifetime value. You can employ AI and RPA technologies to drive newer data channels, improve data processing, and achieve higher business profitability. This way, you can fundamentally reengineer core processes to make them more predictive and data-centric.
#2: Modernizing their legacy systems
To be honest, your legacy systems are not only taking a significant portion of your profits but are too tedious and costly to maintain. And then, they are unable to offer a satisfactory customer experience and take a toll on employee efficiency due to siloed operations. All in all, legacy IT systems are a big challenge, hindering overall productivity and hampering returns. It is why you need to modernize your legacy IT systems and adopt a digital-first approach by using leading technologies to boost system performance and productivity.
#3: Automation and virtualization
For a few years, insurers have invested in RPA and AI insurance technologies to automate operations, especially back-office processes. Today, you can use the power of automation to rethink business processes, data collection, and product/service offerings. For example, you can employ IoT to enable real-time gadget monitoring and offer predictive maintenance before claims are filed.
Moreover, you can also use IoT to offer value-added and personalized services. As the market for connected devices grows every year, you can extract real-time and accurate data about customer behaviour and stay proactive and agile in today’s competitive tech space.
#4: Blockchain data
Forbes state blockchain data to be a decentralised, peer-to-peer ledger of virtually incorruptible records. Although the use of blockchain in the insurance business is still in its infancy, it can help you improve claim management, boost data security, and reduce fraudulent activities. The best part, blockchain offers a multitude of benefits to both the consumers and insurance businesses by modernizing your current systems, which is prone to error and offers low transparency.
The use of telematics will continue to grow in the insurance industry owing to the rich benefits it offers to its customers. Think of it as wearable technology for your gadgets. For example, you can now equip your cars with monitoring devices to gain insights into speed, location, accidents, etc., and determine policy premiums. And that’s not where the benefits of telematics in insurance consulting ends. From encouraging better habits to lowering claim costs for insurance companies and offering proactive support to your customers, telematics is the way to improve the claim filing and policy premium process.
Embracing the disruption in the insurance sector
InsurTech is leading the change in the insurance sector and for the good of both customers and insurers. However, more importantly, techs like AI insurance help achieve the much-needed transformation. In the coming times, the tech power combined will help you boost customer experiences and effortlessly scale for the future.