The fiesta of technological advancements does not require any proof of how it has disrupted industries overnight. There are a lot of examples that suggest how the companies that accepted these technological changes became powerhouses. While the ones who did not foresee it went bankrupt.
The insurance sector is not special. Besides being one of the late bloomers of technology, the industry is now working to make the most of it. From client retentions to new client acquisitions, insurance companies are breaking the shell of their legacy model of operation by using technology.
However, the rise in technology is not the only reason for this switch; thanks to the readily available internet today, customers want everything fast and at their fingertips. Therefore, to serve them better and give consumers lifelong experiences, insurance providers are seeking technological help. From mass digitization to artificial intelligence, from better UI/UX experience to better on-demand services, and so on. The insurance industry is up and running.
Also Read: Business Interruption Insurance
Here are some of the latest trends in the insurance industry:
The foremost thing that differentiates every insurance provider is the time they take to settle the claims. With the advancement of technology, insurance companies have begun to shorten the amount of time it takes to settle claims. Also, in future, the winner of this hunger game will be judged based on the speed of claim settlement.
Nowadays, apart from automating repetitive tasks, insurance providers are looking at automating the decision-making process. With the help of Artificial Intelligence and Machine Learning, companies are now able to maintain less response time, lower maintenance costs and improved efficiency. That helps them acquire new customers as well as retain the earlier ones.
The climate degradation and global warming buzz, is going on for almost the last seven decades now. After being laggard for the most part, insurance firms have recently begun to strive toward creating a more sustainable environment. Many insurance firms have started to avoid insuring sectors with significant carbon footprints. Also, many of them are already divesting their fossil-fuel assets.
Today, one of the popular trends in the insurance industry is Embedded Insurance. In simpler words, it means that whether you buy a car, a device, a house, or a plane, insurance companies will provide you with insurance as a package. This trend has entirely disrupted the vintage way of selling insurance. Seth Rachlin refers to insurance as “fries” in his book “Want some insurance with that?” a side dish accommodates itself with every purchase.
With every process getting automated, the risk of a data breach is more than ever. Companies have a vast volume of sensitive data of all their customers, and a single infringement is enough to wipe it all out. Hence, it becomes extremely critical for all insurance providers to keep their customers’ data secure.
Who would have thought ten years back that you could own a non-government regulated currency. But today, you can, thanks to Blockchain. With the risk and fraud associated with the insurance industry, it is just a matter of time before you will start getting smart insurance contracts and encrypted medical policies. Also, it is necessary to make operations secure and efficient.
The above-mentioned latest trends in the insurance industry are continually getting embraced by the entire world to improve and streamline their services & operations. Both the insurer and their clients benefit from these innovative insurance technology solutions. Furthermore, it can save operating expenses by eliminating fraud and automating services, providing insurance agents with more time to attract and manage the business.