Technology has the potential to transform the insurance industry as we know it. Digital technology can drive significant changes in the modern insurance domain. For modern insurers, the ever-changing landscape of the insurance industry has led to the advancement of technological acceleration in the entire sector.
New digital technologies are changing the way in which customers interact with insurers. However, what is the future of digitization in insurance? How will digitization benefit the policyholders? This blog will guide you through major technology trends that will improve business processes in the insurance industry.
Understanding Digital Insurance
Several terms and conditions make the simple processes of buying, selling, raising, or renewing a claim quite challenging. With digitization, insurance agencies can make use of innovative tools like apps, websites, social media, text, chat, email, and other digital channels to reach out to end customers instantly.
Agencies can leverage the digital insurance platform to suit their respective business models. Compared to traditional insurance, digital insurance focuses on:
- Offering a customer-first business approach
- Offering simplified coverage options
- Offering a wide range of channels for customers to research, compare, and purchase insurance online without the involvement of agents
- Individual handling of risk assessment, claims, and pricing on software platforms
Top Technology Trends for the Insurance Sector
Digitization in the insurance sector has started gaining in popularity and is expected to be one of the foundations for insurance companies in the future. Here are some technology trends that can drive insurance into the digital age:
Online, Hassle-free Insurance Purchase
Buying insurance online has made the entire process of selection easier for customers. Nearly every insurer has access to online insurance quotes. Online quote comparison allows customers to choose from and purchase the digital insurance scheme that works best for them. This eliminates the need to meet an insurance agent in person. It also minimizes the need to ask about a specific insurance product or service over the phone.
Distributed Infrastructure
Insurance across the globe is widely lacking in the use of technology. A number of their core processes have been burdened by in-depth, on-premise legacy insurance technologies. As the cloud continues maturing, a rapid shift to high-end cloud technology for all core operations can help insurers in becoming more confident in launching new products and delivering improved customer services.
The cloud will always make it easier for insurance agencies to easily understand and make better sense of huge data sets (millions of insurance policies). It will serve as the communication hub between insurtech, distributors, customers, reinsurers, carriers, and healthcare providers.
Applied AI
While some insurance carriers have begun to actively experiment with Artificial Intelligence (AI), only some of them have been able to scale according to organizational capabilities. As AI continues to increase in relevance, carriers can re-engineer their core processes to make them more predictive.
AI can also help create a ‘human-like’ component to increase productivity and increase their touchpoints with customers. Carriers are yet to unfold the complete potential of their respective digital assets, which includes viewing distribution interactions and claims histories. Leading insurance carriers can easily leverage AI to create products and services based on in-depth data & analytics.
Future of Connectivity
Insurers have now started using revolutionary technologies such as telematics to improve upon fundamental insurance. This gives insurers a better understanding of the risks involved, both on an ongoing basis and during the time of purchase.
Technologies like these will allow the data to be shared at reduced latencies while helping insurers offer real-time services to clients.
Virtualization and Process Automation
For several years, insurers have invested in robotic process automation (RPA) to automate their processes, especially back-office operations. However, emerging technologies will allow them to reanalyze this approach.
Industrial IoT, for instance can ensure real-time monitoring of devices to ensure predictive maintenance before claims take place.
Trust Architecture
Insurers are known to handle sensitive information about customers across lines. New technologies will allow insurance carriers to effectively manage risks while, at the same time, leveraging complex data. It is an important step in the evolution of the ‘predict and prevent’ insurance model, where data is shared more frequently between subsequent parties. Here, insurers play a vital role in the process of claims prevention.
Approaches such as zero-trust security will assist carriers in the creation of resilient networks, which will ensure greater protection against cyber intrusions.
Modernize Your Insurance Process with Exdion
Exdion is the only comprehensive digital platform in the insurance sector which employs Artificial Intelligence (AI), Machine Learning (ML), Neuro Language Processing (NLP) and other cutting-edge automation approaches to improve accuracy, speed up processes, reduce costs and enhance scalability.
Exdion Edge, the industry’s only comprehensive digital suite helps harness the power of data in a variety of structured and unstructured documents to drive straight through processes. Exdion Edge offers powerful solutions for better renewals management, quote comparison and review, data and certificate compliance. Contact us to digitally transform your business and make it future ready in the digital age.