Advanced technology has already become an integral part of the insurance industry. Nowadays, one can easily compare the life insurance quotes by clicking a button. Not only this, managing coverage or checking the policy status can be easily done via mobile app. These days, paper insurance has mostly become a thing of the past.
Insurance technology is likely to mature even more in the coming years. While there are many insurance technology trends are emerging, we can see them becoming more popular throughout the insurance industry.
Insurance companies looking for a competitive advantage can consider following one or more of these insurance technology trends.
There are many insurance companies, which use predictive analytics to collect various data, to predict and understand customer behavior. However, there are new ways that can be utilized to enhance accuracy. Nowadays, insurance companies can use predictive analytics for:
Identifying the risk of fraud
Pricing and risk selection
Identifying insurance buyers at risk of cancellation
Customers always want to have a personalized experience, specifically while purchasing as important as a life insurance policy. Artificial intelligence offers the insurer the capability to create such personalized experiences, fulfilling the demands of modern customers.
With artificial intelligence, the insurance company improve the claim settlement ratio of the company and can fundamentally change the process of underwriting. AI also helps the insurer to access the data faster and in a more accurate way.
Thus with the help of AI, the insurer can not only speed up the process of insurance but it also helps to improve the reliability of the company.
Social Media Data
In this day and age, the popularity of social media and its role in the insurance industry is thriving beyond clever advertisements and marketing strategies. Engaging in social media data is improving the risk assessment for the life insurer, boosting the capabilities of fraud detection and enabling entirely new experience for the customers. Moreover, SMD helps the customer to interact one on one with the insurer which increases the credibility of the insurance company. Moreover, customers can file a claim, check quotes and request other services simply by login using their Facebook credentials.
According to the experts, it is estimated that by 2025, 95% of all the customers' interaction will be done by chatbots. Utilizing artificial intelligence, chatbots can communicate with customers effortlessly, saving everyone within an insurance company time and money. A chatbot can help the customers through the application process of the policy or the process of filing a claim, saving the human interference for more complex cases.
Bringing the 24X7 customer service phrase to reality, a virtual assistant can interact with the customers 24X7 via text or voice and clear any doubts or queries of the customers regarding the life insurance policy.
To improve the accuracy of the insurance companies many insurance technology trends are interlinked with one another. As per Forbes, Machine learning is technically a subdivision of Artificial Intelligence, however, it is more specific. Machine learning is built on the concept that we can develop machines to learn and process data on their own, without the constant supervision of a human.
With the help of machine learning, the insurance company can not only improve the processing of claim settlement, but it can automate it. When files are accessible and digital via the cloud, it can be analyzed easily by using pre-programmed algorithms which will result in improving the accuracy and processing speed. This automated review can influence more than just claims – it can also be used for risk assessment and policy administration
Wrapping it Up!
The insurance companies are always looking for the latest and highest developments in insurance technology. It not only helps them to stay ahead of competitors in the market but also helps them to deliver the best experiences, which the customers expect in the modern market. With all of the technology advancement going to market in recent years, you can follow these technology trends to make your business more strong and effective.