Four Technology Trends Revamping Insurance Industry
Today, it is an undeniable fact that technology has become an integral part of every industry and insurance is no exception to this, and in fact insurance sector is poised to get transformed completely in terms of enhanced customer experience, better compliance handling mechanisms etc. due to the latest technological advancements. The global insurance technology market is expected to reach USD 1,119.8 million by 2023, growing at a CAGR of 16.0 percent till 2023, says a market report by Infoholic Research. “Technology has been a key driver to promote insurance products in recent times. Going forward, as more and more customers, especially from Tier-IV towns and rural India, get access to the internet through high-speed networks, technology will help extend the reach of insurance products even to the remotest parts of the country,” says Anamika Roy Rashtrawar of IFFCO Tokio General Insurance in an interview with Money Today.
As technology is set to revamp the insurance domain, let us have a look at some of the key technology trends that are playing a key role in the digital transformation of insurance industry.
Since customers today are expecting personalized service, artificial intelligence empowers insurers to achieve this by creating customer-specific experiences and helps businesses in catering to the demands of the customers. AI also helps to minimize the role human being in the back office operations and enables businesses to have more accurate reporting in a faster manner. AI-powered chat-bots which can interact with customers can help businesses save a lot of time and money and provide customers with better engaging experiences.
Un-manned drone can be used to collect the data to calculate risk and assessing damage, particularly in the case of agriculture. These tools help insurance companies in many stages of the insurance lifecycle by performing the risk assessment and directly transmitting the data into the secure cloud servers, allowing insurers to access the data remotely.
Data analytics today is used by insurers to better understand the customer behaviour and predict the future possibilities based on the historical data. Predictive analytics is also used to identify customers at risk of cancellation, identify risk of fraud, anticipating future trends etc.
As security risks are increasing in the digital space, the need for secure data management is also increasing. Blockchain helps businesses in the secure management of their data across multiple channels and interfaces, at a time when the data is growing at rapid pace.