Digital Transformation in Insurance: Key Technologies to Monitor

Digital Transformation in Insurance: Key Technologies to Monitor
Photo by Scott Graham on Unsplash

Digital transformation has transformed countless commercial industries. There is not a single industry on the face of the earth that has managed to escape the rapid digitalization around us. It includes the insurance sector as well, which has observed much quicker adoption of advanced technologies.

Insurers today digitize various aspects of their operations to meet customer demands. You may say it is true for any business that wishes to stay competitive in today’s marketplace – to make it a priority of what customers need. For the insurance sector, digital transformation is powered by artificial intelligence, machine learning, predictive analytics, mobile service, live chat, and more. It allows insurance companies to deliver quality experiences to customers, identifying new opportunities, etc. However, now with COVID rendering the situation a tad more complex, the need for avant-garde technologies in this sector has grown further. Further, it enables them to keep up with changing the industry demands in the years to come.

So, without further ado, here is a list of technologies insurance companies ought to keep a close eye on this year.

  1. Machine learning: Insurance employees often get tied up with mundane tasks such as paperwork, sending follow-up emails, etc. Automation means these repetitive tasks that do not necessarily need human intervention can be taken care of, while employees are free to focus on more important aspects of their jobs. Did we mention automation can also help save costs?
  2. IoT and social media: Data is the new oil, this much everyone knows, yes? But where do you find the data? Via Internet of Things-enabled devices and social media, of course; both of them offer an abundance of unique data about individual customers. This data can be easily leveraged by insurance providers to achieve enhanced accuracy levels about risk assessment, ensure stable margins and more. Whereas for customers, it can help them find better and/or more affordable coverage, receive tailored services, etc.
  3. Telematics for automotive insurance: In the context of automotive insurance, there is a new category of products that is rapidly gaining popularity: Telematics. Comprising tools such as GPS, motion sensors, analytics software, etc., a telematics tool helps keep an eye on the vehicle’s location, its speed, any accidents, and other relevant driving data. This information is then analyzed by insurance companies to help build personalized insurance plans for customers and also improve their risk management capabilities.
  4. Chatbots: An insurance agent’s typical day is spent providing customer support, offering them rather basic details and information. Thanks to the advent of technology, such tasks can now be easily handed off to artificial intelligence-driven chatbots. Chatbots cannot only engage with customers and answer their basic queries but can also be programmed to tap into reporting tools and other advanced solutions to assist customers or simply direct them to a human agent. This not only improves the speed and quality of customer support but also helps companies reduce costs.

There is no doubt that the world of insurance has been profoundly impacted by the continued evolution of technology. From artificial intelligence and machine learning to predictive analytics, a growing number of advanced technologies have come to play a vital role in the insurance industry, enabling companies to not only deliver substantially improved levels of service to their customers but also deliver a significant boost to their sales and earnings.

Not only that, but such technologies have also driven cost reduction, improved accuracy of risk assessment, proactive decision making, and much more. So, if you too want to partake in this insurance digital transformation and benefit from all the many advantages it has to offer, we recommend you start with putting together a list of the functionalities you need and the technologies that can help.

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