Technology is shaping the future of insurance
ASPL India | Published Sep 16, 2021
Traditionally, there has been a broad gulf between operations and the use of technology in the insurance industry. But now, as insurance companies worldwide look to leap into the digital era, that gulf is narrowing rapidly. Investment in technology — or insurtech — has surged in recent years with insurers focusing on offering innovative products and services to today's tech-savvy generation.
Let's look at the five important technologies lending greater digital momentum to the insurance industry at present.
1. Data and analytics
Insurance companies primarily leverage data and analytics to get deeper insights for providing more benefits to the customers. Gaining a holistic understanding of customer journeys helps them improve customer experience, recognise customers at the risk of cancellation, identify risks, and anticipate trends.
2. Artificial Intelligence and Machine Learning
AI and ML offer tremendous potential for automation in the insurance industry, including optimising the processing of claims and appeals, tweaking prices, and determining repair and cost estimation. Additionally, AI applications such as chatbots and affective computing are also being deployed by companies to augment their customer experience.
3. IoT (Internet of Things)
When implemented effectively, IoT technology can help insurers assess, price, and limit risks with better accuracy. Wearables, telematics, and home security systems, to name a few, are already being used by insurers to incentivise customers to stay safe, fit, and risk-free. We can soon expect more and more companies to start using IoT capabilities to reward customers who are focused on safety and well-being.
4. Cloud Computing
Using the scalable and efficient IT services offered by the cloud, insurance companies can improve their data management, whilst increasing cost advantage and accelerate the process resulting in shorter wait time.
The cloud's advanced capabilities can also enable companies to become more customer-centric and increase policyholder confidence.
5. Blockchain
The insurance industry is one that relies heavily on security, transparency, and trust. Since Blockchain uses public ledgers and stringent cybersecurity protocols, insurers can utilise it to improve on all these fronts. Moreover, Blockchain also removes intermediaries, reduces the cost of documentation, and offers innovative tools such as smart contracts.
The insurance industry is one that relies heavily on security, transparency, and trust. Since Blockchain uses public ledgers and stringent cybersecurity protocols, insurers can utilise it to improve on all these fronts. Moreover, Blockchain also removes intermediaries, reduces the cost of documentation, and offers innovative tools such as smart contracts.
#TechThursday is Allstate India's awareness initiative. Join the initiative. Like, share and comment for reach.