5 Insulating technology cannot be ignored

The rapid expansion of new technology in recent years has led to a focus on digital transformation in the insurance industry. By accounting for the introduction of new age technology solutions and changes in customer behavior, digital transformation in insurance have developed a structured approach to digitizing internal processes. Their goal is to digitally transform the business and reduce the time it takes to bring new products to market.

From artificial intelligence to predictive analytics used to understand behavioral patterns using hitherto untapped datasets, using drones, Internet of Things (IoT) devices and telematics to collect that data, the company is adapting technology now to take an omnichannel approach. . At the heart of the plan is to support customer service, which research shows is the number one reason customers switch insurers. In the P&C insurance industry, digital offerings have been part of that transformation. However, future success will depend on how insurers use artificial intelligence (AI), predictive analytics and blockchain.

artificial intelligence

The market value of AI for the insurance industry, which will reach $2.74 billion in 2021, is expected to grow at an annual rate of more than 32% in the current decade. This growth is apparently the result of huge investments in AI/ML that insurers are making to offer their customers a personalized product. A report from McKinsey shows that AI can transform all aspects of the company using smart machines, biosensors and deep learning algorithms, which can lead to a shift from "paying for current damage" to the situation "prevents damage". Connected devices, drones and more

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As AI and ML (machine learning) revolutionize data analysis, the simultaneous process of collecting high-quality, real-time data is taking place. The emergence of IoT devices, telematics and drones has made it possible for consumers to voluntarily share personal data again, as this can lead to costs in their insurance coverage. Insurers have access to data from smart homes, automatic sensors and wearable devices that determine rates, reduce risk, prevent death - all at a lower cost than customers already pay. In fact, the IoT is the human, telematics is the car, as drivers add dashboard monitoring devices that collect information about speed, location, and driving patterns. Similarly to the AI ​​trend, industry research shows that the value of the global IoT insurance market is expected to reach $43 billion by the end of 2022.

Carriers are also turning to drone technology at many stages of the insurance lifecycle – from collecting data to calculate risk before issuing orders to help with prevention and possibly damage assessment. Agricultural insurance is the first example of how drones help with risk and damage assessment without human assistance, sending data directly to the cloud for risk assessment and damage assessment.

Future ready apps

While apps and smart computing are critical, there is also the issue of simplifying the experience at the customer touch point. Already, mobile applications have made it easier for insurers to provide personalized solutions, while on-site interactions have become more efficient thanks to interactive management tools. However, insurance company technology teams should regularly evaluate the application on various metrics such as user engagement, data protection, device compatibility and conversions. And applications will become a single point of contact for both customers and insurers, a new focus on mobile strategy can be an important role.

Defining the customer experience

In the case of non-life insurance, companies do not accept development programs because most customers buy insurance as part of the sales process. Given the easy access to data on the insurer's payment capabilities and claims, consumers are less likely to change their policies if they see negative reviews online. Therefore, it is important that insurers know their customers well so that they can tailor their marketing strategies and position them well among technology buyers. Half of respondents approached by PwC for a recent study said they would not object to sharing additional personal data for personalized offers. Enabling marketing automation and CRM applications alongside AI-powered product recommendations may be at the forefront of the next trend.