Insurance involving a lot of paperwork and physical meetings is quickly becoming a thing of the past. This is because of emerging technologies trends in the insurance industry. Today, you are one click away from purchasing insurance on your mobile phone or computer, at the comfort of your home. This article explores the current and emerging technology trends which are gaining more ground daily.
What are the technology trends in the insurance industry?
Just as the name implies, it involves using technology to track and predict the behavioral patterns of customers. Predictive analytics are generally used for:
- Risk selection and pricing
- Identifying customers with a high tendency for cancellation
- Identifying fraud risk
- Claim prioritization
Machine learning is the idea that a machine can accept, process, and learn from data, all on its own. This happens exclusively from human supervision. Machine learning is a branch of AI and can be used to automate the claim process that would cause significant improvement. We can also apply it across other facets like risk assessment and policy administration.
Artificial intelligence remains the broader category under which machine learning falls in. With artificial intelligence, you can design a personalized customer experience during inquiry and purchase of insurance policies. Artificial intelligence also enhances the underwriting process and allows customers to access data much easier and faster. It also eliminates the human risk of errors and delays.
Internet of Things (IoT):
The idea surrounding IOT is that customer’s personal information can be used to improve risk accuracy and assessment. We can draw this data from different devices such as smart home appliances and wearable technologies. With the right information, Insurance providers can mitigate risks, determine appropriate rates, and even prevent losses along with the need for payout.
Social Media Data:
There is so much information that can be mined off social media. It is a network where virtually everyone is on, therefore with the right data, insurance companies can improve the risk assessment and fraud detection process. We can also apply social media data to create an entirely amazing new customer experience. This benefits both the insurer and the insured because the data can track customers’ activities and compare it to claim records for discrepancies.
The possibilities and benefits of telematics are limitless for both the insurers and the insured. Telematics involves wearable technologies that the insurance companies attach to a customer like an insured car for example. They can track the car with telematics that track progressive snapshots and keeps a record of speed, accidents, location, and more. We can use this data to accurately determine the premium on customers’ policy.
Some benefits of telematics include:
- Better habits on the path of the insured
- Lower claims cost for insurers
- Make customers more proactive and conscious about insured assets
Chatbots can well handle human jobs in interacting with customers. It utilizes the combination of artificial intelligence and machine learning to adequately create a seamless customer experience. With chatbots, we can reserve humans for more complex cases. Currently, there are many chatbots that can easily walk a customer through the basis of an insurance policy application or claim process.
Drones once again can be used in gathering data which is useful for calculating risks before issuing a policy. We can also use it to access damages following a loss, to aid investigation before payout.
There were numerous predictions and indications in the past pointing to the technology trends in the insurance industry today. And as time goes on, it would be further implemented for ease on the side of both parties. With technology, insurance is more effective and easier to implement.