The rise of technology and InsurTech has hugely disrupted insurance companies. Here are the top insurance tech innovations to look out for in 2020.
The insurance industry has been hugely disrupted in recent years, with FinTech companies constantly offering new and innovative technologies. As an insurance firm, it’s essential to hire expert IT consultants to stay on top of the latest trends and give your company the edge in these turbulent and continually changing times. Here are the top five insurance tech innovations to watch out for in 2020.
Artificial Intelligence (AI) Insurance Advisors
The integration of AI software development with insurance claims could drastically improve the customer experience in every aspect. From taking the human error out of completing forms and submitting claims to finalising claims through AI data gathering, processing will take place in much shorter time frames. AI can also be involved in data protection, flagging potential fraud cases, and any data privacy breaches from the moment they are attempted. In the future, AI may see chatbots serving as advisors, with pricing and underwriting made an automatic part of the experience. A claim’s cost could be reduced by 30%, while chatbots already advise customers online for some firms.
Blockchain Replacing Multiple Records
Blockchain is a digital record of a particular individual that cannot be altered and is readily accessible online. The transaction of information between parties, which is so essential in the current insurance process, would no longer be needed. All information would be readily accessible with easy access to one online client ledger. Blockchain reduces multiple sources of information on an individual down to one source of data, reducing identity fraud. Blockchain software was created by the founders of Bitcoin and is the data management tech that sits behind the cryptocurrency’s success.
Leveraging IoT Data
The Internet of Things (IoT) refers to all those smart devices, from your smart-home to your Alexa, that gather and share users’ data regularly. IoTs can deliver insurers with much-needed data, from a customer’s potential risk assessment to what insurance policies they might need at any given moment. Most customers will happily part with their data if it provides them with a discount on their insurance – consider the box you can place in your car to monitor and get an up-front discount on your insurance. IoT, as we mentioned, are already used for car insurance, but can also be used for dental insurance (think smart toothbrushes) and as activity trackers for health insurance policies.
As we’ve seen during the recent pandemic, the digital race left some paper-based individuals behind as most offices switched to remote online working. Many insurance companies could not cope with the increased claims impacting everything from income to health. While the number of calls was unprecedented, the pandemic did highlight companies that rely on paper forms or phone calls and were slow to adjust to home working. In an increasingly digital world, many people prefer to make and check their claims online rather than talk to an individual. Some insurers even take advantage of leveraging additional data by viewing potential leads from advert interaction and even encouraging customers to log in to their social media to file claims.
The Rise of InsurTech
InsurTech refers to those online startups that are already disrupting the existing and established insurance landscape. More dynamic, adaptable, and insurance tech-driven than their traditional counterparts, InsurTech companies offer faster turnaround times and better products at a quicker rate than many traditional companies can adapt. Insurtech has also successfully identified customer needs, like Homelyfe, which protects you if your house sale falls through, or Zhong An, China’s first online-only insurance company, with 10 billion policies sold by 2019. As an industry, InsurTech is expected to turn over $10.5 billion by 2025. InsurTech has even disrupted talent attraction, with only 2% of graduates expressing an interest in insurance careers.
Stay Ahead Of The Competition
The rise of FinTech and InsurTech, new technology, and customer expectations can put pressure on any insurance company. That’s why Pregiotek can help you stay ahead of the competition by providing technical support that increases response times, enhances technology, and protects your policyholders’ data. Reduce the chance of downtime or data breaches in your company and provide your customers with fast response times they expect. Pregiotek can keep your business digitally up-to-date and ready to adapt to the continually changing insurance environment.
Want to stay ahead of the competition? Contact Pregiotek today for expert advice on the tech advances you need to grow your business.