Tech Trends Transforming the Traditional Insurance Approach

By CIOReview | Thursday, August 1, 2019

Technology makes it possible to avail insurance services and claims at our fingertips, and insurers are leveraging such smart methods and personalized policies for a better approach. 

FREMONT, CA: Radically impacting the global market, technology has become an integral part of every industry. Today, insurance technology delivers benefits for both insurers and the insured. The advanced insurtech services make it easy to get insurance at the fingertips and to manage all the covers via a mobile app. Tech trends like telematics, chatbots, IoT, data analytics, blockchain technology, and more become more and more commonplace throughout the industry.

• Telematics

With dramatic impacts on the automotive industry, mobile telematics systems help the insurance companies to determine an accurate and fair insurance premium. The Usage-Based Insurance (UBI) measures a person’s actual driving behavior, allowing the insurers to execute necessary adjustments to their premium. The leverage of getting a real picture of the individual case for an insurance claim, telematics are cost-effective, precise, and keeps the insurers ahead of the competitions.

• Chatbots

Taking advantages of Artificial Intelligence (AI) and Machine Learning (MI), chatbots help to interact with the customers, reduce the need of human workforce, and ultimately save a massive amount of company investment in the segment. The platform can assist with the customers for onboarding and processing the claims.

• Internet of Things (IoT)

IoT widely helps the insurers to collect extra personal information about the consumers via smart homes and wearable technologies to better determine the rates, mitigate risk, and even to prevent losses. With access to first-hand data, insurance companies can improve the accuracy of risk assessment and also customize the policies and offers according to individual customers. The more in-depth understanding of the customer’s lifestyle, behaviors, and whereabouts add value to the strategic approach, customer experience, and brand loyalty and reduces false claims.

• Blockchain Technology

Blockchain technology holds the solution for the rapidly growing needs of advanced insurance strategies to match up the requirements and stand in the global competitive market. The technology offers a comfortable and secure transfer of data across the organization for real-time insurance processes. A feature of advanced secure data management leverages the claims processing, fraud management, and ability to avail reliable data while reducing the operational cost.

The insurance sectors are taking necessary steps towards technical implementations to embrace changes across their traditional approach. It increases process efficiencies, provides improved customer experience, and reduces the cost. It not only delivers the benefits but also helps the insurance companies to stay ahead of their competitors in the modern market.