Revolutionizing Insurance Market Landscape with Innovative Tech Trends

Insurance CIO Outlook | Thursday, August 01, 2019

Insurance MarketAdvances in IT, increased connectivity, and real-time information insights now make it much easier for the customer to price and transact in the insurance world.  

FREMONT, CA: As cross-industry ecosystems arise, digital insurance transformation is redesigning the traditional value chain. This level of change will involve new alliances for insurers to forge. Technology should be capable of seamlessly consuming services or offering their services back to insurers seamlessly. This internal consumption marks the beginning of platform-based services, which in the insurance industry are set to become more dominant.

The real-time access authority given to clients nullifies the impact of human error throughout the process. The future we all look forward to is Artificial Intelligence (AI). We have already seen some vital advancement in this being with the creation of chatbots that have nearly taken over the most fundamental role of human species that is its capacity to interact. Another such instance is Siri, where virtual identity manages almost all of our daily activities.

People will soon start expecting an insurer to access their information and do something customized explicitly to them with it. Social networks will assist in creating peer-to-peer insurance pools for individuals with mutually aligned interests and prevalent risk variables. Knowledge acquired from consumer genetic testing or much more extensive use of genomics in medicine could result in individuals being far better equipped to create private insurability choices. The future is customer-centric and will be influenced by behavioral science, with all playing a role in social and peer-to-peer networking and intelligent devices.

Platforms, enabled with seamless inclusion of APIs, will become increasingly prevalent, and insurers will need to communicate more widely than ever before to participate. To flourish in these dramatic modifications, insurers need to adopt not only fresh products and services but also a defined strategy for investing in digital transformation, preparing for future trends, operating more efficiently and discovering new possibilities.

Digitization will affect every facet of the insurance value chain, from customer relationships to underwriting and claims management. The key to cost reduction is to move towards the no-touch claim technique, which also serves to reduce fraud and enable risk managers to communicate better with clients rather than spend time behind documentation.

The insurance industry is over-saturated with suppliers and is sure to win the race with the essence of digital transformation.

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