How Technology Has Led to Seismic Shifts in the Landscape of the Insurance IndustrySeptember 14, 2020 No Comments
Featured article by Richard Smith, Independent Technology Author
Over the last few decades, the insurance industry has been witnessing considerable changes in its dynamics. There has been an insurgence of InsureTech companies, and the industry is shifting gears to a digital-first-business model.
This shift has not only gained traction over the years, but has raised significant revenues for the industry. Plus, it has also made the usage and renewals of insurance policies by people easier than ever.
The rise of a fresh set of technologies and technological collaborations has paved the way for a better overall experience.
Plus, these technologies have also minimized the risks of fraudulent activities. The changes, as we can see, are for the better.
It has made the insurance industry wholesome and laid the grounds for better customer experience.
Let us now glance through some brave technological innovations that have been creating seismic shifts in the insurance industry.
The Insurgence of InsurTech Firms:
The first on our list is the InsurTech firm that has been at the forefront for quite some time now. These are firms that are a product of the amalgamation of traditional insurance agencies and technological brands.
It must be noted that these firms have been around for some time. However, it was not received well by all corners of the industry.
They might have caused disruptions affecting the stability of the sector, which is why many are apprehensive about them.
However, things gradually changed, and Insurtech firms gained more finesse. They have tweaked the traditional insurance firms to a large extent and are enhancing the user experience bit by bit.
That said, it must be noted that InsurTech is an umbrella term. There are multiple branches of this technological collaboration with traditional insurance agencies.
One of the most noteworthy of these features is that they offer holistic coverage without the need of brokers.
And they do so with the aid of Artificial Intelligence. Not just that, these firms also offer better pricing models to their policyholders.
The Use of Telematic Devices:
The second technological innovation that we need to talk about at this point is the use of telematic devices. This is perhaps one of the best and most useful pieces of technology that the insurance agencies have started using.
Telematic devices are small devices that are installed in cars to gauge the driver’s driving performance and quality.
The insurance agencies are then intimated about the driver’s performance, and the premiums are levied according to that.
Not just that, customers can also access their reports and improve their driving skills. Therefore, it is a win-win situation from every angle.
Sites like Lowered Rates have more information about how the premiums differ with the performance of the drivers.
While some customers might find themselves paying a heavier premium, some might even end up paying way less.
These telematic devices are, therefore, revolutionizing the industry for the better, and there is no denying the fact.
The Optimal Usage of Several Social Media Platforms:
Yes, we know what this might look like. You were not expecting social media to be listed in an article that talks about technology in the insurance industry.
But guess what? Social media is that boon of technology that is being used by businessmen, artisans and tech nerds alike.
There is no evading this platform in this century if you are to draw more traffic to your business. Insurance agencies of every scale have been using the mantle provided by social media to connect with the customers.
Platforms like LinkedIn, Facebook and Instagram act as catalysts to push the agenda of these insurance agencies.
In fact, you will also find advertisements galore on YouTube and other social media platforms. These social media platforms grab eyeballs and drive in traffic to the sites.
This, further, increases the conversion rates, which is what the goal of these agencies is.
Therefore, the best way to connect with customers and increase the influx of traffic is with the technological miracle of social media.
Roping in the Technology of Robotic Process Automation or RPA:
Another technology that we need to focus on in this article is that of Robotic Process Automation or RPA. More and more insurance companies are now making use of this technology to ease their burden.
RPA not only takes the load off from manual labor, but also makes the processes glitch-free and smooth. With the gradual passage of time, this technology is only going to perfect itself.
It is expected that the industry is moving towards a time when the technology shall perform all the tasks. Processes like data collection, document verification and claims processing shall all be dispensed by RPA.
These will require less human labor and bring in more efficiency in the industry. However, there might be an increase in demand for people with skills in running the technology.
Technology requires human to oversee their functions. And this might make some room for jobs in data analytics and machine learning.
Perfecting the Blockchain Technology:
The blockchain technology has been at the forefront for more than a decade now. It all started with the introduction of the Bitcoin.
However, with time, the technology found widespread utility in several other areas. It has now pervaded through several industries and organizations are making optimal use of this miracle technology. The insurance industry has also made use of this technology optimally.
It is now being used widely across all the types of insurance agencies- health, life, auto, and the like. The use of blockchain minimizes frauds and scams.
It brings in more transparency in the processes and makes the process of claiming super-fast. The blockchain technology also improves the process of risk assessment and management.
It, therefore, brings in more efficiency in the whole process.
It can now be seen that technology has caused quite a stir in the insurance industry. It is causing a revolution that is benefitting not just the insurers but also the policyholders.
There shall be more such innovations in the years to come. And now, it is for us to wait and see how these will unfurl and help us navigate through the industry efficiently.
Author: Richard Smith
Having worked as an insurance advisor for over a decade now, I am well-versed with the growing and evolving needs of clients. And to enable the clients and the insurance industry to make better decisions, I write articles that abound in sound financial and insurance advice. The world is changing with every blink of the eye, and people want wholesome and technology advanced policies for the protection of their families. It is time the industry understands these requirements and levels up its game, to thrive and enhance the experience of its customers.