Emerging Technology Trends in the Insurance Sector

Suresh Kolla, EVP, Head-IT, Care Health Insurance

Technological advancements affect organisations across segments, and the insurance industry is no exception. While the sector is already adopting emerging technologies, the prevalence of the pandemic and its resultant change incustomer preferences has encouraged insurers to transform their processes using even further advanced technologies.

This will have a significant, combined impact on the industry as well as individuals

Cloud for speed and agility: Cloud computing technology is seeing a steady growth in its acceptance. Insurers operate in a highly competitive market and are required to constantly innovate and identify ways to boost productivity, quickly introduce new products to themarket and enhance their ability to maintain long-term viability and success

Insurance service providers of all categories are deploying Cloud to gain the speed and agility that technology provides. Cloud-based solutions delivered with the help of SaaS reduce effort and resources required for efficient functioning. Furthermore, handling large and voluminous data is relatively easy with technology. It can comprehend and utilise diverse data sets at a higher velocity across several legacies, third party, connected sensors and emerging systems.

Also Read: How bite-sized insurance companies have contributed to insurance industry’s growth?

Increased use of Automation, AI and Machine Learning Techniques: Robotic Process Automation (RPA) and AI will occupy the centre stage in Insurance. Driven by newer data channels, better data processing capabilities and advancements in AI algorithms, AI business models with behavioural economics can be of great advantage for the Insurance sector. While AI eliminates paperwork, its behavioural economics capabilities reduce fraud – leading to reduced time, effort and costs. Insurers can further use AI in underwriting, which can determine the risks with greater accuracy and help in achieving a more sustainable business.

Additionally, Bots will increasingly become acceptable in both the front and back-office activities. They help automate policy servicing and claims management for rapid and more personalised customer service.

AI and automation will profoundly impact and improve the business outcomes in customer experience, cost optimisation, operational efficiencies, market competitiveness and newer business models.

IoT enabled real-time services: Insurers are re-imagining their value proposition with the help of advanced technologies like IoT. The focus is shifting from curative to wellness. IoT improves the insurer’s ability to assess risks and design personalised products by providing accurate and real-time data. On the other hand, it allows policyholders to gauge the cost of their premiums and advance on the path of health & wellness by assisting them in monitoring their exercise, nutrition, overall wellbeing etc.

Whatsapp to enable sales and service: Instant messaging and voice – over – IP service like whatsapp is going to be a big channel for sales and service. With its simple user interface, automated messages with a human touch, jump on a call feature when needed, multimedia format options, and payment integrations can enable customers who otherwise find it difficult to use mobileapp of respective companies, to derive hands–on assistance and benefits through whatsapp.

Using Data analytics for personalisation: Personalisation is an unwavering necessity for providing a superior customer experience. Progressive insurers are using Data analytics for personalisation. Insurance agencies can collect invaluable data about customer behaviour and theirpreferences with the help of connected devices such as smart home sensors, wearables and telematics. Insurers can use this data to gain a deeper understanding of its customers, and they can also use this to help prevent risks proactively. Advanced analytics can empower insurers to predict and meet customer needs in several areas.

Also Read: Insurance industry to remain high-touch human-oriented but with digitisation: Shyam Seshadri, Head, Innovations Lab, TATA AIG

Continued advancements in cyber security: While cyber security might not seem like emerging technology, it is just as evolving just as other technologies. That’s in part because there are constantly newer threats and cyber security will need to defend against these new/ ever evolving threats.

Improving customer experience by providing customised solutions and streamlined processes is possible through the amalgamation of emerging technologies. Insurers are keen on driving efficiency, expanding capabilities and enhancing cybersecurity. They have been working towards these goals by adopting advanced technologies and their integrations.

Views expressed in this article are the personal opinion of Suresh Kolla, EVP, Head-IT, Care Health Insurance.

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