The insurance market is being disrupted by the rapid advancement of technology. As per a Harvard Review report, insurance agents who went digital reported a 65% cost reduction and a 90% reduction in turnaround time on key insurance processes.
The Six Technologies for Digital Insurance
Let us take a look at the technologies that will digitally transform the insurance industry in coming years.
- Artificial Intelligence: Be it Chatbots or Robo-advisors, Artificial Intelligence is impacting insurance in many ways. Research on AI is assisting companies to develop systems that can perform tasks which previously required manual processing or human intelligence. Enterprise AI solutions improve time-to-market, enhance operational efficiency and enable a more intelligent way to sell and service. From quote to buy to claim, AI has the potential to make the customer’s journey very simple and automated.
- Blockchain Technology: Besides AI, the insurance industry is also focusing on Blockchain technology . Blockchain can simplify paperwork, improve audit ability and help in fraud detection and risk prevention. It can also substantially reduce expenses.
- Machine Learning and Predictive Analytics: The insurance industry is fundamentally based on forecasting future events and estimating the value or impact of those events. New data sources like sensors, telematics, social media, mobile data etc. along with big data analytics have given insurers the opportunity to apply machine learning techniques to new areas of insurance operations. Machine learning has extensively enabled insurance companies to achieve higher predictive accuracy and thus, reduce claims.
- Internet of Things: The insurance sector is highly data driven and generates a lot of data. IoT helps insurance companies gather more data, mostly related to the behavior of their customers. IoT has allowed auto insurers to come up with usage-based-insurance (UBI) by allowing insurers to monitor how its customers drive the vehicle insured. Data from wearable devices enable health insurers to monitor the activity of its customer and offer discounts to healthier customers. It is evident that the role of IoT in insurance will only grow as insurers find more and more innovative ways of leveraging IoT.
- Hybrid Cloud-based Infrastructure: The insurance industry is highly regulated. IT teams in insurance companies struggle with what information is allowed by regulators to be stored in the cloud vs. on-premise. A hybrid cloud approach offers a way to get the benefits of the cloud and the security of keeping data protected on-premise behind the organization’s firewall. This will guarantee flexibility to customers. It is also a less costly and secure way to store information while at the same time reduces the risk of penalties for non-compliance to government policies.
- Mobility and Customer Experience: Customer experience is at the heart of the digital movement. The modern day impatient customer prefers faster, simpler services from insurance companies. In order to provide such services, insurers have to go mobile. This allows them to offer insurance services on the go. Innovative mobile apps can enable users to view policies, request for a policy quote, calculate premium, buy policies and more.
As an insurer have you taken the digital step?
Published: Rapid Value By: Shuvro S Sarkar