The insurance industry is constantly evolving with the introduction of new technologies. From the use of data analytics to improve underwriting and risk assessment to the implementation of digital platforms for policy management and claims processing, technology has been playing an increasingly important role in the insurance sector.
The United States is a hub of “Insurtech” companies today. According to Crunchbase, a leading resource on the startup ecosystem, there are currently 797 companies in this sector. For American businesses looking for suitable technologies for employee insurance products, like workers’ compensation insurance, there are plenty of choices today.
In this article, we will take a look at some of the top technology trends that are shaping the insurance industry today and how they are impacting the way insurers operate and engage with their customers.
- Process Automation Using Artificial Intelligence
AI is being used to automate the claims process itself. AI-powered chatbots can be used to handle initial claims inquiries and provide customers with information about the claims process. This can help to reduce the workload for claims adjusters, who can then focus on more complex claims.
AI-powered systems can analyze large amounts of data quickly and accurately, which can help insurers to make more informed decisions about claims. This can lead to faster claims processing times and a better customer experience.
AI algorithms can analyze claims data to identify patterns and anomalies that may indicate fraudulent activity. This can help insurers to identify and prevent fraudulent claims, which can save the company money and protect policyholders from fraudsters.
- Future Ready Mobile Apps
Mobile apps provide customers with easy access to information about their policies, as well as the ability to file claims, make payments, and contact customer service. By providing a convenient and user-friendly experience, mobile apps can help insurers to build stronger relationships with their customers and increase customer satisfaction.
For critical use cases like an injured employee trying to access the details for their workers’ compensation insurance, apps become very significant. The mobile app should manage the entire life-cycle of the process, from logging the injury report to tracking the status of the claim, post verification. If you want to access more details about a workers’ compensation app that takes care of all such employee needs, try browsing reliable online resources on the same.
In addition, insurers should also consider how their mobile apps will work with other technologies, such as the Internet of Things (IoT) and blockchain. Insurers could develop apps that allow customers to use their mobile devices to track their driving habits and receive discounts on their auto insurance. One can also use blockchain technology to enable customers to access their policy information and easily share it with their healthcare providers.
- Augmented Reality
Augmented reality (AR) technology, such as AR glasses and other devices, is being used in the insurance industry to improve the way insurers collect and analyze data. This is a fast-growing sector, with Technavio, a reputed research agency, estimating a CAGR of 28.71% between 2022 to 2027. The same report expects an incremental growth of $157.21 billion in the forecast period.
AR glasses can be used by claims adjusters to quickly and easily gather information about the damage to a property or vehicle. The adjuster can use the glasses to view a live feed of the damage while also overlaying relevant information, such as repair estimates or parts lists. This can streamline the claims process, making it more efficient.
AR technology is being used in the monitoring and maintenance of industrial equipment. AR-enabled sensors can be placed on pipes in a manufacturing facility to monitor for signs of wear and tear. The sensors can then provide real-time information about the condition of the pipes, which can help insurers predict and prevent equipment failure.
Car manufacturers are also installing sensors in cars to monitor driving behavior and prevent accidents. This data can be shared with the insurers, which can be used to provide more accurate risk assessments and adjust the premiums accordingly.
- Data Analytics
Accenture places large-scale usage of quantum computers as a leading technology trend shaping the insurance sector in the coming months. According to a recent report by the Technology Consulting firm, Quantum computers will allow insurance providers to rapidly process complex data from multiple sources. This is sure to transform risk modeling and predictive decision-making.
In underwriting, data analytics can be used to analyze large amounts of information about potential policyholders, such as their demographic data, claims history, and financial information. This information can be used to make more informed decisions about whether or not to offer coverage to a particular individual or business and at what price.
Data analytics improves predictions about future risks. For example, by analyzing data on driving patterns, insurers can predict the likelihood of accidents and adjust premiums accordingly.
- Blockchain Disruption
Blockchain technology has the potential to disrupt the insurance industry by providing a distributed infrastructure for storing and sharing data that is transparent, secure, and tamper-proof.
Blockchain technology can be used to make smart contracts. Smart contracts are self-executing contracts with the terms of the agreement written into code, which can be automatically triggered when certain conditions are met. This can help to automate the claims process and reduce the need for manual intervention.
This technology can disrupt the insurance industry by providing a distributed infrastructure for storing and sharing data. This technology uses a decentralized network of computers to maintain a digital ledger of transactions, which can be used to record and track information about insurance policies, claims, and other data.
From the rise of insurtech to the growing use of artificial intelligence and blockchain, these trends are set to have a significant impact on the future of the insurance industry. As a business purchasing insurance or an insurer trying to stay ahead of the curve, you should ensure your company is equipped to handle this wave of technological disruption in the insurance industry.