Over the past few years, technology has evolved a lot, and it has significantly affected every industry. New technology trends are emerging in every industry and redesigning its core processes, products, and services.
Like other industries, modern technology trends have also affected the insurance industry, according to Lemonade.com. Here are the top five tech trends that are believed to transform insurance greatly in the coming years..
Increase in the Use of Artificial Intelligence (AI)
Today, many businesses are trying to incorporate AI into their business plans to increase their level of productivity and improve interactions with customers. Due to recent advances in algorithms and technology, more and more insurance companies have started redesigning their core processes.
AI-enabled core processes will change many things, including underwriting, claims, and distribution, making it easier to handle huge data more effectively and make the most out of it. Experts believe that leading insurance companies will create better products by using AI in the future.
An increase in the use of telematics has helped insurers improve core auto products. The internet of things (IoT) is also helping in redesigning various products related to health, property, and commercial industries, according to the BBC.
Insurance companies are now using IoT to share more authentic data and information with their customers to gain their trust and understand their perspectives. They can now better understand the basic needs of their customers. The use of 5G has also made it easier to connect with customers fast.
A Rapid Shift to the Cloud
The cloud has evolved a lot over the past few years. More and more insurers are now shifting to the cloud, which is expected to help them with customer service and product launch. The cloud will also make it easier to manage large amounts data and use it for better purposes.
It is believed that cloud-native insurers will be able to create a vast network of connections among customers, carriers, distributors, healthcare providers and others. This will help them improve their services and expand their business fast.
Automation and Virtualisation
Insurers have long been using robotics to automate different processes and operations. However, emerging technologies are believed to offer more assistance in product and service creation.
Today’s advanced internet of things has enabled insurers to perform real-time monitoring of tools to find maintenance issues before these tools are offered to customers. 3D and 4D printing (more info) are also helping with the claim experience.
Manage Risk Effectively
Customers share sensitive information with insurers that they keep safe to offer protection. However, modern technologies have now enabled insurers to make better use of customer data. They can use this data to manage risks effectively and prevent future claims.
They are modernising the predict and prevent model where data is being shared with customers and insurers to make sure insurers can reduce claims and enhance customer experience.
Modern technologies are also making it easier to manage important data and simplify processes like customer verification and identity management. Concepts like zero-trust security will help organisations create a more secure environment for all.
Last Updated: January 7, 2022