The digital revolution is reshaping business practices in every sector of the economy, though some developments are more visible to the public eye than others. Most people understand that the pandemic has prompted a widespread switch from in-person dining to food delivery apps, for example – but relatively few consider the advancements in insurance technology that allow such services to thrive.
Indeed, many recent innovations and adaptations elsewhere in society have required an accompanying response by the insurance industry. Some insurers have proven themselves to be well prepared for this moment of disruption, while others have fallen behind consumer expectations due to a lack of talent or resources, as well as a failure to recognise emerging trends within the sector.
The following technologies are at the forefront of today’s most sought-after insurance services, due to the efficiency and versatility they enable for the benefit of customers:
1. Big Data / Machine Learning
With smarter algorithms to sort through data, AI-enhanced predictive models can be put in place to identify fraud risk, improving both pricing and underwriting operations – ultimately passing the subsequent savings back to consumers.
This form of analytics also improves the speed and quality of claims processing, while facilitating the sort of pay-per-use transactions that allow the gig economy to function smoothly. By insuring drivers on a per-ride or per-kilometre basis, for example, insurers can provide the security and flexibility that many consumers need to thrive in today’s economy.
This secure medium for information storage and transfer allows simultaneous access to records across departments, streamlining operations to produce far more efficient outcomes. Blockchain also allows for ‘smart contracts’ – agreed-upon programmes that are automatically activated once pre-determined conditions are met.
With smart contracts powered by Blockchain technology, insurance underwriting and payment can be handled more quickly than by any other method.
The Internet of Things keeps devices connected to each other and to designated central nodes, allowing for the type of automated data sharing that helps mitigate risks and even prevent losses.
By enabling the real-time monitoring of homes, cars, and other equipment, IoT lets insurance companies instantly verify insurance-related claims, acting as both a valuable resource for insurance owners and a tool for fraud prevention.
4. Robo Advisors / Chatbots
As in other industries, leading insurers have discovered the vast potential for savings when putting AI-powered software in charge of handling routine tasks like data collection and simple queries. This form of delegation frees up more personnel to focus on more important tasks – including those related to innovating services and upgrading other internal systems.
In most cases, chatbots and other silicon-based advisors can offer customer support that is similar to (or better than) what traditional customer care specialists are able to deliver.
The advances outlined above combine improved service quality with greater efficiency, allowing for more flexible insurance products at lower rates than has previously been possible.
LawtonAsia works alongside leading global, regional, and local insurance providers which are already using these and other tools to improve the quality of their offerings. As independent brokers, we are committed to finding ideal solutions for our clients, while providing ongoing support to ensure full satisfaction.