Technology Opening smarter Opportunities for Insurers to Regulate Premiums and Claims

Insurance CIO Outlook | Thursday, August 01, 2019

The insurance industry is getting better by the day as it demonstrates the power of technologies.

FREMONT, CA: The insurance industry is in an excellent position to improve its offerings and services. Advanced technologies have created numerous opportunities for insurance companies to make everything from policy buying to claims processing better than ever before. Artificial intelligence, Internet of Things, and wearable technologies are helping to create a better experience for both providers as well as consumers.

Risk assessment in life insurance means accumulating a customer's health information as frequently as effectively as possible. Health indicators like heart rate, blood pressure, and exercise habits are of importance to insurance companies. The modern-day wearable technologies are making it possible for insurers to keep a tab on these crucial health parameters. When customers use these devices, the metrics are recorded and delivered to the insurance provider's system, making risk assessment convenient and real-time. Hence, wearable technologies are enabling insurance companies to develop personalized products for individual customers and are also being able to regulate premiums.

Not just life and health insurance, but vehicle insurance and property insurance are also seeing better regulation. IoT equips companies to monitor the quality of driving practices, and analytical tools quantify the data. With this data, companies can price auto insurance policies fairly and transparently. Even virtual reality has potential application within the insurance industry. Virtual reality creates virtual driving facilities where car insurance buyers can take a test to get access to discounts and benefits. 

Most of the processes in the insurance industry are time-consuming. Technology has an answer for this as well. Artificial intelligence and machine learning are making processes convenient for employees as well as for consumers. With highly integrated systems, claims processing has become faster and smarter. Evaluating damages through algorithms is leading to better efficiency and accuracy. Access to data has seen a lot of improvement with the adoption of cloud computing. Security measures have become better with automated scanning abilities enabling faster detection of frauds.

The insurance industry is well poised to make the best use of technology and improve offerings. With due regards to regulations and frameworks, the industry can achieve unhindered growth.

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