Insurtech 2020: How technology in insurance is reshaping the insurance industry
The insurance industry is experiencing many changes, thanks to revolutionary technology in insurance. It has simplified the process of understanding different policies, getting a quote, and managing coverage. A simple click of a button can accomplish things that agents took much longer to do. Traditionally doing these things is set to become a thing of the past.
Technology in insurance will evolve even further in 2020. All these new developments won’t be making agents’ roles redundant. But they will affect how agents need to operate in the future. Agents need to be aware of the significant changes that will become more common throughout the industry. Insurance professionals who want to stay ahead of the game need to be conscious of these notable trends.
Artificial Intelligence (AI) and Machine Learning
Artificial intelligence is making waves in almost every market, including the insurance industry. AI technology can track down and prevent fraud, which costs the insurance industry around $40 billion every year. Apart from that, AI can help speed up the claims turnaround cycles. It can revolutionize the underwriting process. AI can enable insurance providers to get accurate reporting faster since human error is out of the picture. Accenture conducted a study on this matter in 2017. It revealed that 79% of insurance executives believe that the use of AI will reform the industry. Both the ways of gaining customer data as well as the customer interaction experience will change.
Machine learning is also another up and coming part of technology in insurance. While it is technically a part of AI, it is distinctly different. Machine learning has the potential to automate claims processing. It can enable carriers to achieve processing rates that surpass 90%. The process of risk assessment can also benefit from AI.
Data from social media
Social media is turning into more than just platforms to connect to people. It is becoming more than a place for marketing and advertisements. Mining data from social media is helping to improve risk assessment for insurance providers. It can boost fraud detection abilities. Technology in insurance can take advantage of social media to investigate fraud as well. By looking at the social activity of the insureds, they can compare it to the claims filed to check for any inconsistencies.
Internet of Things (IoT)
For most consumers seeking insurance policies, it makes sense to share a little extra personal information if they can save money. The Internet of Things can smooth out the automation process in this data collection process. Using data from IoT devices such as wearable tech and different smart home components can help with mitigating risk, fix rates, and even prevent losses from happening.
The future for the industry looks exciting, thanks to the changes brought about by technology in insurance. Agents should try to explore these trends more so that they can understand better how to take advantage of these developments. These advancements can help agents perform better and reach out to more clients. Missing out on the incredible progress in this sector is not an option!