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Top Technologies Driving an Insurance-Makeover

By CIOReview | Friday, June 21, 2019

Customers today have more demanding needs, and they are more aware of their choices than ever before. This need for personalized offerings and curated communications demands insurers to incorporate technology into their services and optimize all interactions.

FREMONT, CA: A variety of breakthrough technologies are set to spur a transformation of the insurance industry. They are serving unique ways to control, and overcome price risk, engage with customers, increase efficiency, and broaden the scope of the insurance. Technologies aiding the insurers as here.

• Internet of Things 

The Internet of Things (IoT) is one first example of how new data sources and ongoing data reporting are laying the foundation for the industry’s transformation by allowing insurers to more effectively model risk and underwrite policies. These connected devices can include everything from automobiles, home security systems, wearable health monitoring units, kitchen appliances, and energy and transport infrastructure.

• Wearable Sensors

Health and life insurance will be transformed as wearable biometric sensors, provide insurance firms with original data on the health of their clients. Sensors give valuable data on people’s routines, and even their heart rate and blood pressure, the way health risk is assessed and underwritten will dynamically change.

• Telematics

Car insurance is another area that will be transformed by connected devices as telematics. Instead of relying solely on primary information, insurers today can obtain real-time data on their policyholders’ driving habits. Having this information available enables insurance firms to make more informed underwriting decisions and provide policies accordingly

• Mobile Phone Technology

One key innovation contributing to the reshaping of the insurance industry today is the spread of mobile phone technology. Smartphone, the fastest selling devices in history are forecasted to reach a global penetration rate of 50% this year and 75% by 2020 as per reports. They allow insurance firms to communicate with and provide products and services seamlessly to their customers, encouraging enhanced engagement and brand loyalty.

Emerging technologies and innovations are bringing sea changes in the insurance landscape as they enable new methods to improve efficiency and expand insurability. Insurance firms will reap the full benefits of technology by embracing their potential along the entire insurance value chain.