The insurance environment is dramatically evolving, and insurers can no longer depend on old familiar methods as the dominant technical and strategic winds shift around them. As our often-cloudy present gives way to a brighter future, insurers must embrace technology to transform the customer experience and earn the confidence and loyalty of tomorrow’s customers.
The future is about harnessing the potential of Predictive Analytics, Block chain, cloud computing, AI (Artificial Intelligence), AUT (Applying Understanding Technology), IoT (Internet of Things), AR (Augmented Reality), and VR (Virtual Reality). These technological advancements will transform most sectors, including manufacturing, supply chain logistics, retail, education, healthcare, and financial services.
Below are some technologies that can help propel the industry into a promising future:
Many insurance businesses utilise predictive analytics to collect and analyse data in order to forecast and understand client behaviour. However, there are new methods that can be used to improve accuracy. Predictive analytics may now be used by insurance firms for:
- Identifying the fraud risk
- Pricing and risk assessment
- Claim classification
- Identifying insurance purchasers with a high probability of policy cancellation
- Predicting trends
Blockchain is another developing technology that is likely to have a significant influence on a variety of industries including insurance. Despite being well-established and useful, the insurance sector faces several issues, including inefficiency, fraud, human error, and, most alarmingly, cyberattacks.
By providing transparency, blockchain technology has the potential to alter the way we conduct operations. Many other aspects of our life, including real estate purchase and sell transactions, may be touched by this technology, resulting in shorter transactions.
Greater use of AR/VR:
AR cannot alter the whole insurance sector. However, augmented reality technology has the potential to substantially alter the way insurance services are advertised. To build extraordinary procedures, AR and VR may be seamlessly woven into the insurance sector. These advancements have demonstrated significant promise to enhance sectors previously assumed to be technologically static. Here are some of the procedures that can be improved using AR and VR:
Claim processor training:
A claim processing professional has a critical role in the insurance sector. Their function is to investigate a claim by contacting policyholders, police officers, witnesses, and so forth. New recruits can obtain vital experience with the use of AR and VR, allowing them to carry out their responsibilities with more confidence, resulting in high precision output.
Unprecedented risks can be reduced by developing extraordinary simulators that benefit both the insurer and the insured. Insurers can educate the insured on how to prevent untoward situations that may increase the probability of needing to file a claim. Likewise, disaster management programmes may also be designed with the use of AR and VR.
With the use of AR and VR, the claims procedure for insurers can see a beneficial improvement. The technology’s uses in this procedure are virtually endless. If these technologies are used in conjunction with the Internet of Things, the end result will be a highquality combination of speed and precision.
With AR and VR, insurers can process claims faster and identify fraud more efficiently. Customer satisfaction will rise when claims are processed more quickly. Accurate processing, on the other hand, will benefit business owners.
Cloud becoming a lynchpin:
Cloud technology will play a crucial role in replacing insurance providers’ on-site outdated systems. There is a move from on-premises infrastructure to virtualised storage, such as cloud, where there is greater possibility to better control costs, achieve faster time-to-market, and react to changing market demands. This enables them to provide clients with lower rates and quicker service SLAs.
AuT / AuIoT – Autonomous Things:
As we all know, autonomy is all about the ability to make educated and independent judgments; it is also synonymous with self-government. Autonomous interfaces provide a competitive advantage by injecting processes with the capability of AI to enable informed decisionmaking and eliminate human interference from operations.
Automation at its finest:
Because the insurance ecosystem includes millions of insurers, healthcare providers, and patients, it’s easy for the business to become mired down by money and time-wasting inefficiencies caused by billions of forms, human error, and poor communication among parties. Because all forms and data are safely saved throughout the chain, digital ledger solutions such as blockchain can assist in automating outmoded procedures, save billions of hours of paperwork each year, and decrease human error. Distributed ledger technology can help facilitate communication between key players in an insurance claim. A patient’s medical history may be safely examined by physicians and insurers if it is saved on a blockchain in order to identify right policies and practises in the future.
Artificial Intelligence (AI):
Customers are constantly looking for a personalised experience, especially when acquiring something as crucial as a life insurance policy. AI enables insurers to develop such customised experiences, meeting the needs of modern clients. With AI, the insurance firm may enhance its claim settlement ratio and radically transform the underwriting process. AI also enables the insurer to access data more quickly and accurately. Thus, with the aid of AI, the insurer may not only speed up the insurance process, but improve the company’s reliability.
Data from social media:
Beyond innovative commercials and marketing methods, social media’s popularity and importance in the insurance sector is prospering. Engaging in social media data (SMD) collection improves risk assessment for life insurers, increases fraud detection capabilities, and provides clients with a completely new experience. Also, SMD enables consumers to connect on a personalised level with the insurer, thus increasing the insurer’s credibility.
Insurance businesses are constantly on the lookout for the most recent and cuttingedge advances in insurance technology. The technological advancements in recent years can be used by insurers to strengthen the organisation and expand their business scope.
Views expressed by: Anjana Rao, SVP & Head – Digital & Direct Sales, IndiaFirst Life Insurance Company.