Technologies That Will Transform The Insurance Sector In 2021

CIOReviewIndia Team | Monday, 07 December 2020, 16:32 IST

As an integral part of the P&C industry, advanced insurance technology is used for both carriers and insured. Insurance quote getting is easy with a click, but managing coverage can be done through a mobile application, and paper insurance cards are the bygone things.

Insurance technology is predicted to mature in the next years, while tools that are already invested in the sector by some carriers are getting recognized much faster in the present market scenario. Insurance trying to find a competitive edge should be looking for a competitive edge for embracing one or more of the technologies listed below –

Predictive Analytics 

It is implemented by many insurers for collecting a variety of data for understanding and predicting customer behavior. It augmented data accuracy.

However, there are new ways it can be utilized to improve the accuracy of data. Data insurers used Predictive Analysis for pricing and risk selection, identifying customers at risk of cancellation, identifying the risk of fraud, and triaging claims, identifying outlier claims, anticipating trends.

Artificial Intelligence (AI)

Consumers have looked for personalized experiences for a long time, and mainly when purchasing something as important as P&C insurance. AI offers insurers the capability for creating these unique experiences, meeting the high-speed demands of new-gen consumers.

As AI has the probability of improving claims turnaround cycles, and fundamentally change the underwriting process, it extends insurers for accessing data faster, and scrap out the human element leading to more accurate reporting in shorter time intervals.

AI and predictive analytics have now become a popular technology for carriers in transforming the claims.

A PwC report predicted that AI’s beginning impact will relate to the improvement of efficiency, and automating existing customer-facing underwriting, and claims methods. With time, its impact will become more thoughtful, with its functioning of identifying, assessing, and underwriting emerging risks, and new revenue sources.

Blockchain

With AI transforming the insurance sector and enhancing the customer experience process, blockchain technology is another thing that is capable of bringing more transparent steps in the insurance cycle.

Blockchain is also forecasted to improve efficiency, cost savings, and guarantee faster payouts, and claim settlements.

The blockchain potential in the insurance industry is sky-touching, and the global market for blockchain technology is expected to reach $1.39 by the year 2023.

The insurance sector’s blockchain includes anti-money laundering practices, fraud mitigation, automatic claim maintenance, and KYC norms.

Internet Of Things (IoT)

The growing dependency on connected devices is increasing the importance of the Internet of Things. IoT as we call it can place its helpfulness in data collection, and analysis of data from physical devices. 

IoTs' benefits include accuracy in risk management, cost savings, and also fraud prevention.

For example, data collected from IoT sensors has the ability for helping supply chain insurance companies, accurately monitoring real-time data of transported goods during transit.

Similarly, IoT data gathered from commercial properties can help in monitoring property maintenance, risk analysis, and early-stage property-related issues.

IoT improvements have the potential for transforming the insurance sector with rapid, and correct results.

Robotic Process Automation (or RPA)

There are some rigorous hardworking continuous administrative processes an insurance company has to pass through. It includes underwriting, claims to process, and addressing customer queries.

Robotic Process Automation (RPA) with its automation prowess can reduce the operational costs and workload.

A Capgemini report claims that it has the ability to save 54,000 hours of time with 85 percent accuracy.

Summarizing the technology adoption in the forthcoming year in the insurance sector, the above-stated technologies hold the maximum proficiency for non-falsified results.