Ways On How Technology Is Making An Impact Towards The Insurance Industry
There’s no doubt about it: technology has completely transformed every facet of life. We live and breathe this in our everyday experience. Whether we’re tracking bus stops in live time, purchasing train tickets through an app, ordering online through the command of our voice assistant, or watching the stock market drop by the minute, it’s pretty clear that nearly everything we do and interact with is somehow facilitated by software and a digital device.
One technological change that takes place behind the scenes, however, is found in the insurance and collision repair ecosystem. Automated homeowner insurance claims are shaking up the ways businesses operate, taking a lot of the guesswork and grunt work out of process execution. Keep reading to learn more about the role technology is playing in the insurance evolution.
The advancement of the Internet of Things (IoT) has driven a data explosion. The number of IoT devices is increasing every year as smart homes become more common, providing huge sets of data that will add to available sources that insurers already draw from, including their own claims data, client data, census data, weather data, and communication analysis.
The challenge is to create structured data from unstructured information, and the sheer volume of available data can be overwhelming in terms of analysis. That’s where insurance tech startups are working towards building more modular, scalable IT infrastructure that can better adapt to future needs. They’re providing the technology that can help decision-makers sort and process these massive sets of data.
One of the biggest developments in P&C insurance news is the use of artificial intelligence, which is necessary for generating actionable insights. AI presents the opportunity to leverage vast pools of data, enabling claims management to make better and more informed decisions. However, improved operational efficiency only scratches the surface of potential benefits AI technology can deliver to the insurance industry. Workers will be freed from rote tasks and will find more time to focus on human-centered work from improved outcomes.
Loss Prevention Technology
Insurers seek to minimize the number of claims they have to process and new technology makes this goal much more attainable. For example, moisture sensors can detect a leak on the 30th floor of a construction site before it causes structural damage down below. Some workers have wearable sensors designed to improve their ergonomics and avoid overuse injuries, which is one of the leading causes behind worker’s compensation claims.
We’ve already been using this type of technology in our day-to-day lives. Weather tracking systems inform us when a storm is on its way so that we can move people and property out of harm’s way. There are countless examples of loss prevention technologies, but as they become more widely implemented, they’ll help reduce the frequency and severity of claims.
The App Impact
Technology is completely disrupting our traditional understanding of insurance. Take auto insurance as an example, which has been a staple for decades and decades. It’s being augmented now that cars contain all sorts of sensors, back-up cameras, blind-spot detection, touch screens, and computer technology. This makes cars safer and more efficient but it also makes collision repair much more expensive than before.
Some companies in the auto insurance industry are using apps to solve this technological challenge. These apps can track driving behavior and distractions, eventually leading to lower rates for drivers who demonstrate proper behavior. It helps drivers improve by providing personalized, real-time feedback and fostering friendly competition with yourself, friends, and others in your area. You’re able to compare your habits and behaviors to those around you to see how you fare.
If you think that app monitoring will make a splash in the insurance industry, then brace yourself for the advancement of nanotechnology. Within our near future, it may be very well possible for a human to have a chip embedded in their body that, similar to a computer, scans for the virus, abnormalities, and health defects. While this may lead to increased preventative treatment, detecting and curing a problem before it leads to lasting consequences and expensive medical treatments. This has the potential to be very beneficial, but it also poses coverage concerns for individuals with pre-existing conditions.
Only the future knows what’s in store for insurers but keeping your eye on the industry can help you stay abreast of trends.