Top 5 Digital Trends Transforming the Insurance Industry
Updated on Feb 14th, 2022
In today’s digital world, technology is fastly penetrating into the lives of the common people. Almost every global sector today is undergoing digital transformation and the insurance sector is no exception. Whether we talk about contract management software, or litigation support software, the insurance industry is slowly but steadily moving towards the digital era.
According to research, the digital insurance sector contributed nearly 2.9% or 630 billion in the GDP previous year! But what is currently trending in the insure-tech industry, and what will be its future?
Well, if you have the same questions in your mind, then don’t worry, you are in the right place! In today’s article, we will be covering the top five technology trends that are transforming the insurance industry for the better. So, without wasting much of your time, let’s quickly dive in!
How Technology is Changing the Insurance Industry?
From automating the claims processes to transforming the document management process, here’s how different technologies are facilitating the growth of the insurtech sector.
1. Internet of Things
The first and foremost technology trend that is revolutionizing the insurance sector is IoT. as per Gartner, IoT is all set to transform the leading sectors of the global market. As per their research, there will be around 5.8 billion IoT endpoints around the world by 2021. These enterprise IoT applications could be easily leveraged by the insurance agents to access real-time information.
For instance, insurance companies could analyze the health of their customers with smart IoT applications. Furthermore, the companies can even set their policies and can assign reward points with real-time data provided by IoT apps. Another vital use-case of IoT in the insurance industry is the auto-insurance sector. Many leading automotive companies today are investing heavily in IoT app development to monitor the performance of their drivers.
That real-time information, not only helps them to reduce their resources but even ensures the safety of the drivers. Driving the fleets at a nominal speed helps to save on fuel, maintenance, and ensures maximum safety.
2. Robotic Process Automation
Another digital trend that is revolutionizing the insurtech sector is Robotic Process Automation. We all know that a main concern for the insurance sector today is managing the hundreds of client-related documents efficiently. Furthermore, daily tasks like underwriting, claims, policy management, and so on add to that tedious work. That’s where RPA comes to play
Robotic Process Automation when combined with AI can quickly process tons of information in no time. Furthermore, this robust digital trend can even interact seamlessly with enterprise solutions like ERP, service desks, databases, and much more to streamline the daily tasks of the insurance industry.
All that, not only helps the insurance agencies to save time and cost but even makes them stand apart from the rest of their competitors.
Additional Read: What are the Benefits of using RPA in the Insurance Sector?
3. Artificial Intelligence and Machine Learning
Who isn’t aware of the term AI and Ml? These two popular technology trends have so far transformed almost all the major and even minor sectors of the global market. Be it education, retail, real estate, or even logistics, AI and ML have revolutionized every field of the global platform drastically. The same holds true even for the insurance industry.
For instance, AI helps the insurers to boost their claims turnaround cycle by processing the data much faster. Furthermore, with the advent of AI-driven chatbots, the customer service sector also enhanced effectively. Similar to AI, ML also helps insurance companies to increase their efficiency by enabling the machines to make automated informed decisions.
A virtual assistant named Able by Allstate is a perfect example of an ML machine that helps the insurance agents by offering them complete details of their products and policies.
4. Predictive Analysis
Yet another powerful digital trend that has been transforming the insurance industry is predictive analysis. Used by many of the leading insurance agencies, predictive analysis collects a variety of data to deeply understand user behavior.
That accurate information can be used by the agents to plan their pricing for the policies, frame their sales strategies, identify the risks and frauds, and anticipate the latest trends. Furthermore, the same technology trend even helps the agencies to identify the risks for the customers that eventually enhances the customer services.
5. Blockchain Technology
Last but not least, we have blockchain technology that is revolutionizing the insurance industry. Secure transactions and smooth flow of data are the two most critical aspects of the insurance sector. Even a small hole in any of these aspects can result in large losses and a decrease in brand value. That’s where blockchain technology comes to play!
Blockchain technology ensures a smooth and secure flow of information across multiple interfaces to ensure a safe transaction. Underwriting, claim processing, fraud management, identity management, and reliable data availability are some of the exceptional benefits of blockchain technology in the insurance industry.
Interestingly, due to all those great benefits, many leading insurance agencies today are leveraging blockchain technology in securing the operations. When are you planning to integrate any of these technology trends in your insurance business?
How Can Matellio Help?
Witnessing such a huge growth of technology one thing can be said for sure that the insurance industry will soon get completely digitized and will step into the future of insurance. That’s why the leading companies have already started to integrate digital solutions into their insurance agencies. Do you also wish to become a part of the same community? Then why wait!
We, at Matellio, have been a leading name in the software engineering market for delivering cost-effective and reliable insurance software solutions to a multitude of businesses. Whether you have just started, or are doing well, our certified and professional developers can cater to all your business problems to make it successful in the market.
Have more questions or ideas regarding your business growth? We are here to answer you! Reach us today and get a free 30-minute consultation on your big development idea. So, hurry up!
Till then Happy Reading!
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