Is Technology the Vision of the Insurance Industry?

Insurance CIO Outlook | Monday, June 24, 2019

Technology is a necessity of present-day business world, particularly in insurance. The efficiencies, cost savings, data, and business insight that technology can provide will make insurance leaders better as an industry and help them all to grow.

FREMONT, CA: Technological advancements help to make a market more accessible and improve how firms interact with their customers. This is the case with the insurance sector too, evolving at an incredible pace with the aid of technology.  Over the past years, the industry has enormous customers buying insurance. They are demanding a shift from the conventional way of purchasing coverage to a method that is more convenient and faster for them.

•    Smart and Touchless Claims

The processes involved in insurance claims remain cumbersome and extremely time-consuming. The application of Artificial Intelligence (AI) could revolutionize this by underpinning smart and touchless claims that do not require human processing. AI-driven software can report claims, audit the system, and communicate directly with the customers while eliminating outdated paper-based processes. The implications here are vast, especially in terms of the number of claims processes and elimination of human error.

•    Disrupting Existing Business Models

Blockchain can disrupt the existing business model along with cutting down operational cost and ensuring reliable, faster, and safe applications. This technology ensures that sensitive digital data is, and there are fewer chances of fraud and identity theft. Blockchain is also the surest way to better customer experience, mainly to deal with those who are expected to submit many documents many times. It also authenticates transactions and policies.

•    Real Data in Real Time

IoT devices, sensors, and telematics are fast gaining adoption in the insurance sector. Various data sources, coupled with advanced analytics, can aid insurers to enhance risk assessment, price policies based on real data in real time, and encourage customers to buy policies for loss prevention. Extracting value from data using powerful analytics and data warehousing platforms have also facilitated evidence-based decision making.

According to Deloitte’s Global CIO survey, insurers spend 3.6% of revenues on technology, which manifests the reliance on technologies. Advanced technologies are giving rise to new business models and use cases in the insurance sector. The opportunities provided by technologies are urging firms to innovate faster and redefine the industry to survive in an astonishingly digital world.

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