Technology to Propel Inclusive Insurance Business

By CIOReview | Thursday, June 13, 2019

FREMONT, CA: The global Insurance market revenue is valued at $532.7 million in 2018 and is expected to reach $1,119.8 million by 2023. New technologies are dramatically changing the landscape for insurance around the world and enabling insurers to enter new mass market segments. New data sources and analytical tools are opening ways to create, capture and analyze information that can help insurers better calculate and manage risks associated with customers. The expansion of identity solutions and onboarding options is lowering operations cost and enhancing convenience. All these innovations are helping the global insurance industry in radically transforming into active risk mitigation and advisory partner for governments, businesses and individuals.

• Claims Verification and Payout

Paying claims quickly builds trust and adds customer value, and technology can help with that. Parametric or index insurance using data from weather satellites enables automatic payments for farmers. Drones are even enhancing claims payouts and management. Drones allow access to isolated and dangerous areas after disasters to collect aerial data and assess loss through cutting-edge imagery analytics.

• Back-Office Systems

Modernizing back-office systems with technologies will help bring down administrative costs, making low-premium products less expensive to manage.  To further reduce transaction costs, the industry is using blockchain technology. By providing universal, tamper-proof record transactions, the technology could reduce human error, fraud, data duplication, and ultimately increasing efficiency and lowering operational and administrative costs for the industry.

• Data to Reducing Risks

Data analytics can be effective at identifying customers and their behavior patterns. With new data tools, the industry will look at risk differently. Through the analysis of behavioral and social data, that lower-income people will not be any more significant challenge than those with higher income profiles.

Facilitating an environment and willingness to welcome new technologies is needed for greater inclusion and diversity. There will continue to be barriers, but the quest for furthering technology adoption must stay ignited.