Technologies Taking Insurance Sector to the Next Level of Performance

By Insurance CIO Outlook | Wednesday, June 12, 2019

FREMONT, CA: The role of technologies in rapidly transforming industries is now evident. The insurance industry is also witnessing a slew of innovations and changes which have made firms in this industry much more efficient and customer-centric. The technologies are disrupting the old models and processes and bringing in much-needed solutions. The most significant techniques among them and the way they have affected insurance firms are discussed below.

• Artificial Intelligence (AI)

AI has found wide-ranging applications in many sectors. In insurance companies, AI is increasingly serving the purpose of risk evaluation and underwriting. Risk evaluation is complicated, and AI can achieve this with exceptional accuracy and excellent speed.  Additionally, AI-driven chatbots are becoming indispensable tools for customer interaction.

• Blockchain Technology

Blockchain technology was developed, along with crypt-currency but not the technology has found use in many other spheres. It has the feature of immutability which allows transactions made on blockchain to be highly secure and transparent. Frauds are significantly minimized through blockchains.

• Advanced Analytics

Financial firms require high volumes of data. These data can be managed better and leveraged in a better way with advanced analytics and Big Data technologies. Analytics comb through vast amounts of data and bring to the fore crucial patterns. These are instrumental in devising business plans and insurance policies.

• Internet of Things

Smart devices that function with the Internet of Things allow firms to monitor certain aspects of their customers remotely and on a real-time basis. This capability enables firms to offer premium pricing for policies to their customers based on various behavioral factors and activities that the insured person undertakes.

• Cloud Computing

Experts believe that the cloud might become a default shortly. Firms that migrate to the clouds afford a range of benefits like high security, centralized systems, and cost-effectiveness. Management of data becomes convenient, and the cloud service providers take up many tasks, subsequently reducing the burden on insurance companies.

As the world gradually moves towards digitalization, insurance companies must keep pace with advancements and adopt the best technologies to stay relevant and meet customer expectations, apart from accelerating their growth.

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