5 Technologies Redefining Insurance In 2019
Most people have watched the world change drastically with the advent of the internet, cloud technology, and global communication. No industry has been left untouched by these advances and insurance is no different. Insurance has changed drastically over the past few decades as technology has improved at a breakneck pace. According to information that was published by Deloitte, one of the world’s foremost accounting firms, about 70 percent of insurance carriers use the cloud in their business today.
These carriers have also indicated that cloud computing is a vital part of their business platform strategies and their day to day operations. Furthermore, insurers have also begun employing SaaS technology as a part of their critical systems including fraud detection, marketing, and claims. Statistics published by Deloitte have shown that about a quarter of insurance carriers are using SaaS as a part of the departments mentioned previously. Of course, these are only two examples of how technology has been redefining the insurance industry. Technology is poised to redefine the insurance industry again in 2019.
Technology has Made Customers More Knowledgeable
With the major advances in communication that were mentioned above, customers have become more knowledgeable of their choices when it comes to insurance than at any time in the past. Because of this, consumers also have higher expectations and want to have more choices. This allows the consumer to tailor their insurance choices to meet their exact needs. Some of the changes that businesses need to consider include:
- Customers expect to be able to research the options and purchase their insurance packages online
- Consumers expect to communicate with the company through digital channels including mobile devices and online chats
- Customers expect these conversations to be meaningful and personalized
Because of these expectations, insurers need to find a way to offer more products and more information online so that customers have access to the information that they need. Furthermore, businesses also need to take steps to improve their communication with their customers in order to strengthen relationships and increase customer loyalty. This will translate into an improved bottom line.
The Advent of Big Data and a Wealth of Information
Every sector of the economy, particularly insurance, has realized the value of investing in data analytics. The more data that businesses have, the better educated their decisions will be. This leads to a higher return on investment and improvement for the bottom line. Unfortunately, big data has also complicated these decisions. There are a few basic points that insurance businesses need to understand. These include:
- Social media, the Internet of Things, and interconnected devices have given insurers access to large amounts of data on their consumers
- With so much information, insurance companies need to prioritize the data when it comes to decision-making
- This data can be used to improve the underwriting process and provide new products with larger profit margins
While the benefits of big data are clear, insurance companies offering cheap car insurance still need to find a way to process all of this data in an efficient manner. What is the correct way to use this data to gather insights on consumers? How can insurance companies leverage this data to earn a competitive advantage? With so much data, what pieces of data should be prioritized?
The Advent of Robots and SaaS
SaaS and automation technology has fundamentally changed the way that insurance companies operate. Robots are simply software programs that have been programmed to automate certain processes. This automation makes these processes faster and more accurate, increasing efficiency. Some of the points that businesses need to keep in mind include:
- Robotic processes and Solutions as a Service (SaaS) technologies can both increase production and reduce costs
- Insurance companies have used this software to generate applications that can increase the interface between consumers and businesses
- Properly programmed robot technology can automate human tasks and perform them 24 hours per day, seven days per week
Businesses will need to figure out how to implement this technology without disturbing their infrastructure. Companies will also need to decide which tasks are best-suited to robots, SaaS, and automation technology.
Technology and Security
Because so much of the insurance industry is becoming digital, cybersecurity is more important now than ever before. This means that businesses need to think about this ahead of time instead of reacting to a disaster. Some of the important information about cybersecurity that businesses need to consider include:
- The number of records being stolen in cyber attacks is on the rise
- Cyber insurance is an option; however, it is expensive
- Companies should stay on top of the advances in the world of cybersecurity so that they can protect themselves accordingly
With this information in hand, it is critical for companies to think about how they can protect themselves using threat-monitoring systems. Businesses should think about the amount of money they are willing to invest in cyber insurance and how they can appropriately guard against the threat of a hack into their core systems.
The Improvement in Blockchain Technology
While the development of blockchain technology might signal increase competition in the insurance industry, it also means an opportunity for collaboration. This new technology has only increased the calls from consumers who demand more transparency in the business’s anti-fraud and data security sectors. Instead of fighting this technology, insurance companies should embrace. Verify this new technology by reconciling it against the various customer data sets. Use this technology to leverage sensor hardware and data analytics to make decisions in real-time. If used appropriately, this technology has the ability to provide automated adjustments in premiums, improving the business’s bottom line.
Technology is Fundamentally Changing the Insurance Industry
Clearly, there are numerous technologies that are changing the insurance industry. As technology progresses, more processes will become automated, data will be analyzed faster, and decisions will be made in real-time. Because of this, it is critical for business managers and entrepreneurs to invest in new technology today. These technologies reduce overhead costs overall, cut down on the number of errors, increase productivity, and provide businesses with an edge on their competition. Instead of reacting to the changes created by technology, be proactive and invest in these advances now.