Disruptive Ideas to Change Insurance Industry with Technology
Just like other industries, advanced technology is now an integral part of several operations and processes in the insurance industry. Getting insurance quotes, managing coverage, and filing the insurance claims can be done via mobile devices like smartphones or tablet PCs. Traditional insurance processes are a thing of the past now. With help of the latest tech innovations, insurance companies can offer an omnichannel approach to drive the pace of change in the entire insurance industry. This is the reason, insurance providers of all types and sizes are seeking insurance tech solutions that can help them scale, update, and grow with the changing market demands and trends.
Be it a funeral insurance company, life insurance agency, or P&C insurance provider, considering the following insurance tech trends can help them stay ahead of the competition and grow greatly by providing an excellent customer experience.
Predictive analytics is a common approach used by different insurance companies to understand and predict the behavior of customers. It helps them collect a variety of useful customer data and information that can be used for a variety of purposes. Data obtained through predictive analytics can be used for risk selection, determining the risk of policy cancellation, fraud detection, and anticipating insurance trends, etc. The incorporation of predictive modeling has proved to boost revenues and accuracy for different types of insurance companies.
Internet of Things (IoT)
Data is an important asset for businesses of all types. Internet of Things technology is one of the best ways to automate data generating and sharing across different devices. Insurance companies can use IoT to collect data from various sources like smart home hubs, automobile sensors, and wearables, to determine the best rates, reduce risks and prevent losses. Other insurance companies can also use IoT technology to increase the accuracy of risk assessment and underwriting processes. As a result, insurance providers can improve revenues ultimately.
Social Media Data
Social media is more than an effective marketing channel for insurance companies. They mine social media data for their customers to improve risk assessment, fraud detection, and enable a truly excellent customer experience. More and more insurance companies are using social media sites like Facebook to interact with their customers even to finalize insurance deals as well. Modern consumers can use social media apps to get insurance quotes, file claims, or request other services.
Experts say that almost 95% of customer communication will be conducted by chatbots by 2025. The use of AI chatbots allows insurance companies to interact with their customers seamlessly even out of working hours. This not only saves time and resources for the organization but responds to customer queries in real-time as well. Chatbots can also walk customers through insurance applications and claim processes to reserve human resources for complex tasks and jobs. Ai integrated chatbots can interact with customers via text or voice to respond to their queries in real-time. This also makes an insurance company be available 24/7. Chatbot capabilities are also likely to increase in 2022 and beyond.
Insurtech companies are passionate to leverage the latest technologies and solutions to reduce insurance costs for both companies and customers. Insurtech solutions help companies improve operational efficiency and enhance customer experience exceptionally. The latest Insurtech solutions come with improved capabilities and features to transform the insurance sector. Real-time data collection and predictive analytics help companies develop affordable insurance products as per users’ interests and need to boost customer base and increase sales.
Auto insurance companies are now using telematics to determine policy premiums based on data. The data can be obtained through monitoring devices attached to the vehicles. This helps the insurance company to get different measures like speed, location, accidents, driving habits, and more. All the data is then processed with analytics software to determine policy premiums and risk assessment. As a result, auto insurance companies are better able to offer enough coverage based on the behaviors and data of drivers to prevent huge losses.