Technology is changing faster than the speed of lightning. The rise of technophiles nowadays can outnumber baby boomers in the coming years too. In fact, even baby boomers are so inclined to using technology in their daily routine.
The insurance industry is facing a similar groundbreaking shift. Gone are the days where people would have to be in a queue to update information. Not only is this time-consuming but it accounts for more staff which in turn, amounts to higher operational expenses.
As with any other industries, the insurance industry is also bombarded with rapid technological trends. The way the younger generation chooses their insurance plans has changed as well. This is why insurance companies have adopted many of the current technological trends to cater to their younger target market.
Here are the top five of the most critical technology trends in the insurance industry thatâ€™s paving the way for a more unified and orderly system.
Outsourcing some insurance processes to automated machines not only makes for efficiency but they also lower operational costs. Robotic Process Automation (RPA) is a software technology where Artificial Intelligence (AI) controls data, collects data, and manipulates data on desktop-based applications. Some examples are:
- Claims Processing
- Form Registration
- Policy Cancellation
- Automated Data Entry Process
- Document Management
- Renewal Processes
RPA helps in these processes which are considered as redundant and can be done by Artificial Intelligence software. RPA is not only used in the insurance industry, but itâ€™s also applicable in other sectors as well.
Even though Artificial Intelligence (AI) has been around since the 1930s and was called â€œmachinesâ€ back in the day, it has seen a more widespread usage now more than ever. Along with fast-paced technological advancements, consumers nowadays are also looking for fast and efficient customer support from insurance companies. When it comes to their health fund no waiting period is an essential factor. An AI customer support like chatbots is making this possible. The rise of social media analytics is also making it easier for bots to personalize communication with each customer.
Since the insurance industry tackles a massive amount of data, cloud computing benefits insurance companies. With the ability to store information through a remote network, insurance companies no longer have to invest in hardware and local server installation and hire maintenance experts. However, since cloud-based technology is more susceptible to a security breach, insurance companies try to strengthen their cybersecurity systems when it comes to cloud computing.
In this day and age, data analytics is an integral part of any industry. Because of data-driven platforms, itâ€™s easier for analytics tools to gather different customer information. Aside from demographics, data analytics can help clients find the right premium for their lifestyle. One example is getting insurance quotes online based on your age, status, physical activities, and more.
Internet of Things
We may not know it, but when you look around, you probably have technology embedded in the most mundane objects. And undeniably, insurance companies took advantage of the Internet of Things for a more integrated process. For instance, auto insurance companies can take advantage of a vehicleâ€™s location, distance, and even bad driving practices which can impact their insurance policy as well.
Itâ€™s safe to say, technology is all around us. And the best way to give clients a more competent service in exchange for their hard-earned insurance and investment is to integrate these critical technology trends for a more seamless experience.