Technology is taking over the insurance industry like any other industry. Advanced insurance technology now centers the industry to benefit both carriers and insureds. Seeking individual health insurance in Dubai is now less intricate with technology. No more paper insurance cards today as you can get any info through a mobile app.
In developed economies, insurance infrastructures work like a double-edged sword. Insurers are struggling to attract and keep talent even if it is a multi-billion industry. As companies struggle with modernization, they have to develop new ways of operating while focusing on the customer yet not abandoning the traditional approaches.
On the other hand, developing economies are on the advantage side as they can incorporate digital infrastructure with the latest technologies from the onset. They don’t have to begin with the traditional slow manual ways than later on making changes.
Insurance Technology Trends Transforming the Industry
Different parts of the world have incorporated these insurance technologies fully while some are taking it slow. Insurers looking to be competitive should embrace one or more technology trends.
1. Artificial Intelligence (AI)
When purchasing P&C insurance, consumers’ personalized experiences to customers is unavoidable. AI offers new and unique experiences to insurers that meet the high-speed demands of the modern customer.
AI allows insurers to improve claim cycles changing the whole process. It also makes it easy for them to access data transfer fast, cutting out the human element. Therefore, reports are presented in shorter periods with accuracy. The equipment has predictive analytics that is now popular in transforming how carriers handle claims.
AI primarily improves efficiency as they automate the processes of existing customers who are facing claims. The technology will be more profound to identify, assess, and highlight risks, and it identifies new revenue resources.
2. Personalization & data
Insurers are now putting the customer at the center of everything by collecting and activating the right data from IoTs. They are connected to cars, activity trackers, and anything that a customer can use, including toothbrushes!
Also, they are proposing to understand the customer better, their needs then offering customized advice, coverage, and tailored pricing for each. The shift in focus is an indicator that insurers view consumers individually, not segments.
IoTs tap into customer data to help charge them as per their needs which is another way of allowing the customer to be in charge. Personalization and clever data-use are beneficial to both customers and insurers, which improves user satisfaction by offering customized products to help assess risks accurately and stable margins.
Users are asked to share their location for business use which feels invasive, but the truth is, they are ready to oblige for their benefit. It will be easy for customers to corporate if the company is transparent on how the information is to be used.
3. Mainstream Blockchain
There is a need to process bulky customer data in real-time in different insurance functions. The data transfer has to be secure, across in organizations and the relevant stakeholders in a secure manner.
Blockchain technology secures data management to multiple interfaces and stakeholders without interference, loss but with integrity — functions like identity management and underwriting claim processes, managing fraud, trustworthy data availability at reduced costs.
Blockchain is more beneficial like in policy management through Decentralized Autonomous Organizations (DAOs) and also smart contracts. The multi-billion insurance industry will find more value by tapping into this new technology.
4. InsurTech Partnerships
Insurtech firms have grown significantly and automated in most areas like homeownership and cyber insurance. The growth through advanced technology will push traditional insurers into acquiring technology capabilities or initiate partnerships with InsurTech companies.
The surge in market demand for innovative products and services to millennials has become a critical need. In the end, it is a win-win situation for traditional insurers and InsurTech companies as they will access colossal customer bases, expertise, and funding.
As a result, newer models and revenue streams will increase profits and reduce operational costs as the customer experience will improve.
It is estimated that a few years from now, the insurance industry will have a 95% dependency on technology that powers chatbots. The use of AI and machine learning chatbots makes interactions with customers is convenient to save an organization’s time and money.
Those seeking individual health insurance are now privileged to have services 24/7 that are aided by chatbots. A bot walks the customer all available policy applications or claims process without human intervention.
The insurance industry has, in most part, operated in traditional and manual functions which mainly depended on paperwork documentation. However, advanced technology has brought about undeniable changes in everyday operations.
Inmediate is an insurtech startup from Singapore that is using the latest technology such as Artificial intelligence, Distributed Ledger, and NLP, making insurance processing and underwriting fast, cheap, and flexible. That gives for better processes, lower costs, improved time to market, and new revenue opportunities.