how technology is changing the insurance industry

4 Ways in Which New Technologies Add Value to the Insurance Industry

Going digital and incorporating innovative solutions essential in order for industries to remain competitive in the digital era. The insurance industry is not an exception to the rule. Now, you might be wondering: How exactly can new technologies help someone who’s selling insurance products? Better yet, can these technologies add value to the insurance industry, and if so, how?

For starters, using technology can help insurers improve and upgrade their products. It can also make their day-to-day operations much more cost-effective as well as help them make themselves more customer-oriented. But there are a plethora of other ways in which the insurance industry can benefit from implementing new technologies. Here are four most important insurance technology trends.

1. The ability to use predictive analytics

Making future predictions about the outcomes is a big part of running a successful business. Insurance companies know this, which is why they often employ technologies such as predictive analytics to capture important trends by finding patterns in the data they’ve collected.

By being able to draw conclusions from data, insurance companies can predict how the consumers will behave in the future. When this data is used strategically, it can help insurance companies improve the overall customer experience significantly. Other ways insurance companies can benefit from using predictive analytics include price forecasting, insurance claims sorting, and fraud risk identification.

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2. The ability to predict and prevent losses

Speaking of predictions, another way new technology adoption can add value to the insurance industry is by predicting/preventing losses. As a company, lessening the volume of claims should be one of your top priorities, and this is where loss-prevention technologies can come in handy.

From wearable sensors that prevent the workers from getting injured to moisture detection systems that prevent water damage, there are numerous new technologies that are being used by a wide range of companies. Making proactive loss prevention a part of a business strategy can be as simple as relying on Energi Insurance Services and their technology driven risk management solutions. In doing so, businesses can reduce claim severity as well as frequency and maximize insurance through technology. While loss-prevention technologies may not bring down the claims overnight, they’ll certainly help mitigate claims in numerous categories over time.

3. Access to effective cybersecurity solutions

Another way technological tools can benefit insurance companies is by offering them a higher level of security. Digital security or cybersecurity has become a major concern for businesses around the globe in 2020. This was a time when we witnessed a surge in remote work and the shift to internet-based services. The change in the way we communicate meant that the companies, including insurance providers, had to boost their cybersecurity efforts.

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One way they tackled it is by creating smart contracts that allowed for condition updates and claim tracking. Other new technologies used by the insurance industry include machine learning (ML) and artificial intelligence (AI). These cybersecurity solutions offer protection against malware, detect deviation in data behavior, monitor data workflow, and respond to cyberattacks instantaneously.

4. AI-enabled customer interactions

Digital transformation has also changed the way companies communicate with their customers and perform customer service tasks. Virtual assistants are becoming increasingly common, with a growing number of companies relying on AI-enabled response systems for customer interaction.

These are known as chatbots, and they can be effective tools when it comes to saving time and resources. While they may not be able to handle more complicated cases and requirements, they can tackle some common processes. These include everything from filing claims and applying for policies to handling service requests and answering commonly asked questions. They allow insurance companies to interact with clients in the most “human” way possible without requiring human intervention, and they can be improved over time, which translates to improved customer service.

how technology is changing the insurance industry

Wrapping up

The emerging trends in the field of technology are slowly, but surely, reshaping the insurance industry. To employ these new technologies to the best advantage, it’s important for companies to identify the functions that they need to improve first. In doing so, they can start investing in solutions that will help them secure a greater ROI and stay on top of the ever-evolving digital trends.

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