Top 5 Emerging Technology Trends that will Shape the Future of the Insurance Industry
Insurance is the foundation of personal and professional financial security nowadays, and even though everyone might need it, that doesn’t mean that success in the industry is a guarantee. The insurance industry is constantly changing and evolving with the socio-economic and consumer trends, but experienced leaders know that digital transformation is one of the keys to long-term success. In such a highly competitive sector, you need to stay on top of the latest tech trends and invest in the right tech solutions in order to accommodate the needs of a tech-savvy generation of customers.
But aside from appealing to the modern customer, leveraging the right tech solutions is essential for minimizing financial waste and increasing revenue in an insurance company. This is why technological advancement is one of the most transformative factors in the industry. That said, you need to take a calculated approach here and invest in the most cost-effective solutions, as digital transformation can be a costly endeavor.
From launching your own mobile app to using IoT to collect more customer data, all the way to tailored insurance policies, let’s explore the tech that is revolutionizing the insurance sector.
Using IoT technology to gather customer data
The Internet of Things has been around for a while now, and nowadays IoT solutions and devices have a wide range of uses in many industries, insurance included. In the residential sector, IoT-enabled devices can help policyholders to more accurately describe their involvement in an accident or prove they were not at fault when filing for a claim, but for the insurance company, IoT can help improve and optimize various internal processes.
Mainly, good IoT solutions can help collect more valuable customer data to make better predictions, analyze behavior and trends, assess risk accurately, and prevent losses for the company as much as possible. You can use this data to increase and optimize revenue over the long-term by collecting app user data, for example, but you can also use the data to optimize the customer experience and bring better policies to the market with ease.
Making better decisions with predictive analytics
Data science is rapidly revolutionizing every industry in the world, using data analytics and artificial intelligence for accurate forecasting and predictive analytics that allow insurers to make financially sensible decisions. The ability to predict certain outcomes has always been one of the most important goals and a lucrative opportunity for insurers, because if you can predict when, if, and how something might happen, you can prepare for it well in advance.
In a very practical sense, this means that you can use predictive analytics to better optimize your pricing model, minimize risks, spot sales opportunities or act quickly if a customer is thinking of cancelling their policy, prevent fraudulent activity, and much more. To achieve this, insurers have been using complex mathematical models and deep customer research for decades, but nowadays, artificial intelligence and machine learning are finally making this process efficient and effective.
Tailoring car insurance with user data
Having the right car insurance is a priority of every car owner, whether it’s a personal or a corporate vehicle. As it was always the case, though, policyholders are looking for ways to minimize their expenses when it comes to car insurance, and get better coverage for a lower premium if they can, which is an opportunity for insurers to acquire and retain more customers over the long term.
Insurance companies can leverage user data, industry trends, and their own branded apps to create the best car insurance offers, such as the one found here, that’s tailored to the needs of the individual. You can access all relevant information through your branded app, for example, as users will leave plenty of valuable data that you can use to tailor their experience and provide the customized car insurance they need.
Low-code development allows insurers to stay relevant
Given the fact that the insurance industry is always evolving, and that companies need to keep bringing new and exciting products and experiences to the market to stay relevant, every insurer needs to invest in web development. Now, web development is costly, and it doesn’t just mean building a website, it also means optimizing your website to drive more sales and updating it regularly to keep your customers engaged.
Until low-code development became popular, insurers had to invest a lot of financial resources to achieve all of this, but nowadays you can use this technology for cost-effective website management and upkeep. Low-code development apps and platforms don’t require you to have any coding skills, and they typically use drag-and-drop features, intuitive design, and various templates to make web design and upkeep a seamless experience.
Leveraging artificial intelligence for customer support
Last but not least, it’s important to note that artificial intelligence has many uses in the insurance game, and customer support is definitely one of them. The modern customer wants and needs instant access to their insurance information, quick answers to their questions, and they want 24/7 support and guidance.
Providing all of this at once can put a dent in your budget, but with AI-driven chatbots, it can be a cost-effective process for your company. Given the fact that chatbots bring numerous benefits to insurers and the policyholders, now is the time to invest in this technology in order to capitalize on a rising trend.
Over to you
Technology is changing the way insurers approach their customers, their policies and pricing, and various other internal processes. Without a doubt, the insurance sector is going to continue changing as new technologies become available, so make sure to start investing in these tech and digital solutions now in order to future-proof your business in this competitive industry.