Technology Trends Ruling the Insurance Industry
Technological innovation is a crucial driver of transformation in the financial sector, which has led to efficiency benefits, even though these changes can initially be accompanied, by uncertainty. With opportunities for new methods of service provision, and more significant options for data collection and fraud detection, the insurance industry is no exception to such innovations, which are called “InsurTech.”
Artificial Intelligence and Robotic Process Automation are occupying the center stage in insurance, driven by data channels, data processing abilities, and advancements in AI algorithms. Insurance companies deploy AI and behavioral economics as its core elements as it eliminates brokers and paperwork. Behavioral economic capabilities minimize fraud, which helps reduce time, efforts, and costs. AI bots are also becoming mainstream, benefiting both the front and back-office to automate policy servicing and claims management for more personalized customer service. AI and automation will impact and improve outcomes in customer experience, cost optimization, operational efficiencies, market competitiveness, and newer business models.
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With the growing connected devices, market insurers will be able to extract real-time and accurate data on individual consumers that will help them proactively respond with timely and highly personalized interventions. Drone and imaging technology will enable insurers to obtain high-definition images for remote and accurate property estimations and analysis. Insights will be gained, through data set relationships to create deeper granularity in individual risk profiles and protect insurers from emerging risk exposures. Advanced analytics will be deployed, to segment users and needs, model behaviors, adjust policy prices, optimize business strategies, and identify new growth opportunities.
The need for a massive amount of customer data to be processed, in the real-time, calls for secure transfer of data across organizations. Blockchain technology offers the advantage of secure data management across multiple interfaces without the loss of integrity. The technology gives services from identity management and underwriting to claims processing, fraud management, and constant data availability at reduced operational costs.
The ensuing challenges and opportunities urge companies to reinvent the industry to survive in such an astonishing digital landscape. The above technological trends indicate that new values can certainly be created for the insurance industry.