It’s no secret how we’ve come a long way as a modern society. Thanks to digital tools and technologies, they have significantly improved various industries. They have made business processes more efficient, productive, accurate, and seamless. They have led to quality products and services that can ultimately benefit the consumers.
The insurance sector is no exception. Whether offering life, health, home, or auto insurance policies, insurance companies can employ digital tools and technologies. Let’s say, for instance, the adaptation of Insurtech. Insurance carriers have begun leveraging the latest insurance technologies to improve operations, boost customer experiences, and reduce costs.
Now, let’s take a look at the top technological trends in the insurance industry. Keep on reading to learn more.
1. Artificial Intelligence (AI)
AI has become such a buzzword in recent years. It proves beneficial in various industries, and the insurance sector is no exception. Artificial intelligence entails the simulation of human intelligence in machines. As a result, these machines somehow think, speak, and act like human beings.
Insurance companies can utilize AI technology in their underwriting and claims processes. For one, this digital technology can draft the appropriate policies using templates once customers provide their relevant details. Also, it can perform claim computation once providers or customers submit their pertinent information. Ultimately, it can make the whole claim process more accurate and efficient for the customers’ benefits.
The idea of automation is to eliminate manual work. Contrary to popular belief, automation doesn’t replace humans but assists them. The ultimate goal is to make human lives easier, work more productive, and outputs more accurate.
The use of automation can be beneficial in the insurance industry. As an auto insurance carrier, you can leverage this digital technology to assign the appropriate policies for customers. For instance, the predictive analysis will help see if your customers are high-risk drivers. That way, you can draft and offer high-risk auto insurance for them.
3. Internet of Things (IoT)
The Internet of Things has become such a game-changer in the business landscape. Think of all physical devices worldwide connected to the internet. It makes the world a global village, where people can communicate, interact, and even perform tasks.
In the insurance industry, both carriers and customers can benefit from IoT. Policyholders can use their mobile phones to access their policy data and information. They can wear automobile sensors and wearables to help their insurance carriers monitor their risks and prevent losses.
For the uninitiated, telematics entails transmitting data and information via computerized devices over long distances. What started as a simple tracking system using a global positioning system (GPS) has turned into a complex data system providing insights on a vehicle and its driver.
For this reason, telematics proves to be beneficial for auto insurance companies recording and tracking vehicle performance and driver behavior. It encourages proper driving habits and reduces claim costs for auto insurers. This technology is even shaping the future of the automotive industry.
Every industry requires customer service for answering queries, addressing concerns, and resolving issues. Know that clients and customers also expect excellent customer service from insurance companies. Why? They will be calling to ask about their insurance benefits and request to process their claims.
That said, Chatbots have penetrated the insurance industry. One example is Geico’s famous Kate serving as a virtual assistant. Kate is capable of communicating with customers via text or voice. She can answer basic policy coverage queries.
6. Social Media Integration
We now live in this time and age, where we cannot ignore the power of social media. Gone are the days when people used these channels for personal interaction. Today, people utilize them for business. And the insurance industry is no exception.
Insurance companies can leverage social media to market their insurance policies to target clientele. They can even use these channels to boost their customer engagement. They can even keep their customers well-informed by publishing and sharing valuable and relevant content pieces like insurance trends. Lastly, they can utilize these channels to build meaningful relationships and create loyal insurance customers.
At this point, we’ve tackled digital tools and technologies that are beneficial in the insurance sector. Be sure to consider the top technological trends outlined above, from AI to IoT to social media integration.
As an insurance carrier, incorporate some of these into your business processes and applications. While insurance exists for protection, digital tools and technologies can further amplify this protection for the benefit of both insurance carriers and their consumers!