The insurance sector is being revolutionized as a result of the availability of technology through which underwriting policies, processing of claims, and providing services to customers will be enabled.
Key Technological Innovations/Solutions:
- AI Tools and Machine Learning:
- Underwriting: AI systems are now able to use extensive data sets for analysis in order to make better risk assessments. This could lead to more customized rates and quicker underwriting times.
- Detection of Fraud: AI is used in monitoring frauds through the analysis of claims and detection of anomalies and certain patterns in data.
- Enhanced Customer Support: Automated supports like chatbots and virtual assistance are now on standby all day every day to assist in the answering of questions and policy support.
- Blockchain:
- Transparency and Security of Transactions: The blockchain technology allows for increased security and transparency in insurance transactions by presenting clear and unchanging records of transactions.
- Smart Contracts: Automated processes such as the settlement of the insurance claims or the payment of premium amounts can also be carried out via smart contracts.
- IOT Devices:
- Telematics Devices: IOT enabled devices installed into automobiles can help provide information on the insurance type being charged based on the person’s driving mechanism.
- Wearable Devices: Wearable devices can collect relevant health data for the certain individual which will help further customize the insurance plan as per the risk factors possessed by that certain individual.
- Big Data Analysis:
- Risk Assessment: Insurance pricing can be further refined by employing sophisticated analytics and analyzing large datasets in order to better understand risk factors.
- Customer Risk Profiling: Analytics can help insurance companies to risk discriminate and develop bespoke products and services in line with the risk profile of different customers.
The effects on the customer journey
These advances in technology tend to change the experience of the customer in the following ways:
- Better Customer Support: Full time customer support with the ability to get support all time, faster claims processing, and enhancement of personalized service.
- Easy Access to Services: Policies, making payments and filing claims can now be done with ease thanks to online platforms and mobile applications.
- Better Avenues for Disclosure: Clients will be able to learn more about the insurance products offered including the process involved in making claims thanks to the use of blockchain technology.
- Targeted Pricing: More fairer and informed targeted pricing will be made possible as AI will enable fairer risk underwriting.
The Development of Insurance
The evolution of insurance can be better achieved by utilizing the technological advancement capabilities which promote efficiency in the industry towards the customer and innovation. Utilizing resources such as AI, blockchain, IoT, and analytics, insurance transparency can be enhanced, risk management improved, customer experience bettered, as well as create innovative products and services for the developing customer needs.
Notice: This article is intended only for general information purposes and should not be construed as an investment suggestion. For specific recommendations, you need to consult the professional advisors.