Top Technology Trends Disrupting the Insurance Industry

Technological advancements in today’s digital age have become a strategic priority for almost every business in order to meet rising customer demands. In this regard, the Insurance industry has been rarely considered as an early adopter of disruptive technologies. But now the industry is entering into the technological disruption bandwagon as the growing customers’ expectations, new competitors and a changing set of challenges are presenting a transformative scenario to the industry.

Thus, to implement new and emerging technologies, the companies in this space are taking big strides, somewhat in a migratory manner, to adapt to technological advances. That adaption is intended to assist in better running operations, improving underwriting and risk management, enhancing customer offerings and services and ultimately growing the business.

Here are the top technology trends that will accelerate the Insurance industry in the years to come.

Intelligent Process Automation (IPA)

Intelligent process automation is an application that combines AI and technologies such as Computer Vision, Cognitive Computing, Machine Learning, and RPA. IPA is a big innovation of AI and intelligent automation as it is used to more effectively deal with document-based processes like claims processing, regulatory compliance, and commercial underwriting. By leveraging IPA, insurance firms can automate the process of mining germane unstructured data from claim submission, both from industry-standard ACORD forms and non-ACORD forms. IPA also advances process efficiency by lessening the number of touchpoints, thus freeing up employees to focus on other, higher-value activities.

Personalization

Nowadays consumers’ behavior has shifted from just looking a product to receiving personalized offers and customized solutions to fulfill their needs. Looking at reports, nearly 88 percent of Insurance customers demand more personalized offers, messages, recommendation and more from providers. Thus, to deliver the level of personalization that consumers need, insurance firms must utilize data insights and comprehensive demographic data. In an Accenture study, around 77 percent of insurance customers are keen to provide usage and behavior data in exchange for lower premiums, quicker claims settlement or insurance coverage recommendations. So, to deliver highly personalized and positive experiences, insurance companies must invest in the data, technology and analytics to comprehend and share customer preferences, interactions, and other customer data across channels.

Digital Risk Management

The pace of change in the insurance industry continues to accelerate, with incumbents and start-ups pursuing digital innovations across the value chain. However, this digital transformation alters the nature of the risks being managed, and also presents opportunities to advance how the risk function operates. Making things convenient for the customer, from creating experiences to keep them coming back to identifying customer service as a top priority, are all common objectives, and now a digital emphasis is placed on these initiatives. Digital Risk Management has become a core of insurance firms and to accurately harness its benefits, they need to take a look at the digital customer journey. Also, they need to scrutinize the collected digital customer experience trends which are provided through a customer analytics platform.

Artificial Intelligence

AI is likely to disrupt the entire landscape of the insurance industry. Despite an old and highly regulatory industry, insurance companies have been sluggish to embrace artificial intelligence compared to other industries. The technology has the ability to transform the sector by enabling a seamless automated purchasing experience using chatbots that can pull on customers’ geographic and social data for personalized interactions. However, there are many insurance companies around the world are now implementing AI to improve their bottom lines, alongside the customer experience. For instance, Accolade Inc’s Maya Intelligence platform leverages machine learning to assist patients and employers to choose the most pertinent and cost-effective health insurance coverage. In one another instance, a Chinese fintech firm Ant Financial, which is a part of Alibaba Group, introduced a software, named Ding Sun Bao, to assess car accident damage and process claims.