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Technology Trends That Are Redefining Insurance Sector

By Insurance CIO Outlook | Tuesday, February 12, 2019

The impact of technology has changed the way insurance companies used to process earlier. Technology has groomed the process of moving the business from offline to the digital medium. it has enabled the insurers to build enhanced customer experience and personalized services for the clients as well. Here is an analysis of some latest technological trends that are expected to engulf the industry and help those who adopt them to stay on top of the business.

Insurers are implementing technology to provide high-quality multi-channel customer service at highly optimized cost. Investments are being made in machine learning, and automation for all their business operations starting from marketing, claims processing, settlement, and reimbursement. A robust machine learning algorithm is used for underwriting that would help assess the quality of each risk and lead to real-time decision-making in the process.  The other practical ways the insurance industry uses machine learning includes submission prioritization, fraud detection, and claims triage.

Analytics come to rescue insurers with data and intelligent insights. The industry generates a large volume of data which will help them to predict their customer behavior and subsequent demand for different insurance products. Data coupled with predictive analysis helps connect the dots. Data analysis algorithms allow insurers to maximize their revenues by analyzing the profitability of policies offered, fix policy pricing, customized product offerings, and improved employee productivity.

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Artificial Intelligence (AI) is continuously presenting business with endless possibilities across every industry and insurance is no exception. The most common applications if AI in the insurance sector is in the claims management process. AI can detect patterns in data and help identify genuine claims in the process. AI systems also learn and discover new cases in a new context, evaluating damages automatically and predicting the costs from historical data. AI-powered chatbots can replace human assistants to deliver customer services anytime, anywhere.

Blockchain revolutionizes the insurance sector with aiding in client validation and fraud activities like false claims and approvals. It can alleviate paperwork, verification of claims, improving the quality of data using while underwriting, and improve efficiency across the insurance value chain.

The insurance industry is being redefined by the Internet of Things (IoT). Combining IoT with insurance is connecting the consumers with the sector. These devices are allowing a mass inflow of data which helps insurers to more effectively determine rates and provide personalized services while keeping the critical assets safe and secure.

The evolution of technology has made it a requirement for the insurance providers that they ensure to keep up with its pace so that they can remain at the forefront of the business.

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