Technologies That Make The Insurance Sector Relevant For The Future
The use of technology in the insurance industry, just like any other industry has seen exponential growth in the past decade. Advances in technology are indispensable components of the insurance industry that now benefits insurance agencies and their customers equally. Customers are more inclined towards getting quotes for their insurance requirements online. They can also manage their coverages with a mobile application.
The use of technology is going to see an immense amount of growth in the coming times. Many insurance companies and insured businesses are already using some of these instruments for their business purposes. While insurers are using technology to gain an edge over the competition, business owners employ these tools to improve the essential nature of workers’ compensation coverage, auto insurance coverage, general liability insurance coverage, and the coverages for the other business-related insurances.
For example, technology can be used by businesses and employees in the following ways for insurance purposes:
- Technology can enable employers to create systems that can be easily used by their employees to communicate efficiently with their employers and other co-workers.
- Technology can be used to educate employees about various risks.
- Employees can use easy to use technology to report accidents and injuries faster and file for workers’ compensation.
- It can be used to manage workers’ compensation claims and other business insurance claims.
- Telenursing and telemedicine can be used to provide emergency medical care.
The following five are emerging technological tools that are used extensively by insurance companies and have an impact on the business insurance industry.
Predictive Analysis of Data
Most of the insurance companies collect a lot of data concerning their customers and other business components. Proper analysis is this data is utilized to achieve better forecasts regarding:
- Identifying and meeting current and future business insurance requirements and trends.
- The risk factors associated with a particular business or insurance.
- Identify the risk of insurance cancellations from business customers.
- Assessing the risk of fraudulent claims from businesses.
- Managing various types of claims and recognizing any patterns.
- Getting new customers on board with an analysis of trends in business insurance requirements.
Most businesses look for personalized solutions to their insurance requirements. Every business has different needs when it comes to insurance based on the size and nature of the business. AI facilitates insurance advisors to design solutions to meet such unique client requirements.
With the help of AI, insurance companies can transform the insurance underwriting process. AI can also be used to improve the claims cycle efficiently by accessing large amounts of data within a short time and erase the chances of human error. Businesses can use the insurance agency’s AI-based system to accurately report claims.
Currently, the use of AI is limited to achieving better operational efficiency and better customer experience. However, in the future, AI will also have an impact on the identification and assessment of insurance risks for businesses. The automation of claims processing through digital files stored in the cloud can transform the process significantly. AI would also affect profitability by identifying new sources of revenue.
Data From Social Media
The initial use of social media for marketing and advertising has evolved into many other interesting tools for business insurance agencies. Data obtained from social media is utilized to improve the assessment of risks for businesses. Social media data can also be used to increase the detection of fraudulent claims. New ways of handling social media can improve customer communication and experience.
Many insurance companies have shifted their entire customer interactions and support over to social media. Businesses can get insurance quotations, file claims, and place any other kind of request for services via social media.
Insurance companies can use social media to authenticate claims and filter them for fraudulent ones. Many social monitoring tools can be a part of the process of investigating claims. Insurers can watch the social media activities of the businesses who have filed for claims for any red flags.
Many companies carry out the majority of their customer communications via chatbots these days. It is estimated that by 2025 more than 90% of all customer communications will be handled by chatbots.
Chatbots are AI-enabled that can have intelligent communication with the customers and help them with the majority of the commonly faced problems. Chatbots save an insurance company a lot of time and resources. These bots will be able to complete the common processes like policy application, filing claims, and many others. Human interactions will be reserved for complicated requirements and cases.
Even though insurance companies have limited use for drones at the moment, drones can be utilized extensively for risk assessment and calculation. Drones can be used to survey common business premises like factories, large spread out businesses like plants and farms, and other businesses located in places difficult to reach by humans. The use of drones can save insurers a lot of money associated with assessing the risk factors of a business.
The latest developments in technology can help insurance providers increase revenue and profitability. They can also help the businesses to obtain and manage their policies effectively as well as ease their claims.
Inmediate is an insurtech startup from Singapore that is using the latest technology such as Artificial intelligence, Distributed Ledger, and NLP, making insurance processing fast, cheap, and flexible. That gives for better processes, lower costs, improved time to market, and new revenue opportunities.