Technology has become an integral part of our life and the last couple of decades have witnessed some remarkable innovations in technologies. We have traveled a long path since the invention of steam engines and electric motors. Nowadays, electric cars can be spotted running in streets, communication devices have evolved drastically, and computers have become much smaller, but much more powerful.
What is the role of technology in the insurance industry?
Rapid growth in technologies is affecting various industries, and the insurance industry is one of them. It’s no secret how complex internal insurance back office processes of companies are, which directly affects the customer experience. Adapting cutting-edge technologies can help insurers to meet customers’ expectation, in accelerating growth, improving profitability and in staying ahead in the market. This is the main reason why leading insurance firms are optimizing technologies to its full potential. In the year 2017 global insurance firms around the world spent around 186.5 billion USD on IT alone. In 2018 the spending on technology is expected to be 198 billion USD.
Listed below are some benefits of using technology in your insurance business:
Machine learning to automate internal workflow-
Storing, processing and exchange of information requires a lot of paperwork, which can be time-consuming and tedious one in the insurance business. Automation and digitalization can help refine these processes and can significantly reduce your time and effort. Automation of these job releases pressure off your employees, allowing you to assign your highly skilled employees to perform more strategic tasks that are vital for the smooth functioning of your insurance business. Using AI tools can boost your productivity in every aspect, enabling you to stay on top of your processes.
IoT improves risk management-
Internet of things is helping insurance businesses in the evaluation of risk of each individual. For example, boxes similar to the black box can be fitted in a car to monitor speed, location, time, distance, acceleration, break, car fluids and other vital data. Once gathered, this information can be shared with the insurance provider via the mobile internet. The insurance providing companies can analyze this data in customizing an insurance plan for a specific customer, and in improving their risk management.
Chatbots in enhancing customer experience-
A chatbot is a program powered by AI, which mimics real interaction and can be used in chatting with users. It is based on the application of machine learning that allows it to copy human conversations and interact with humans. Insurance agents spend a massive amount of time with their customers- explaining various plans available, and assist them in choosing the right plan. Replacing employees with chatbots will help you in saving time and improving the efficiency of your customer support services. Customer support services play an essential role in the growth of a company and Chatbots are handy for businesses having local and international clients, as chatbots are capable of providing 24/7 customer support without any interruption.
Drones in assessing a situation-
Drones are the unmanned aerial vehicle that is currently a massive hit across the world. They are being used by professionals, hobbyist, and private companies. Many governments are using drones in border patrolling, remote sensing, air surveillance and numerous organizations are using drones for studying environmental conditions, climate, wildlife, etc. Drones can also be used by insurance companies in assessing damages in places that are difficult to access, which eventually impacts the policy pricing and may lead to delay in claims management. Evaluating a possible risk at the earliest will help insurance companies in minimizing the cost and in neutralizing a threat.
Automation is a crucial factor in improving the efficiency of the insurance business operation in no time. Insurers can save time by automating their everyday processes and stay focused on what is important. The time earned can be utilized in building a healthy client-customer relationship and educating yourself on how to deal with coming threats.
The insurance industry is going through a revolution and is blooming at an enormous speed. It has become very challenging to survive in the competitive market as more and more players are streaming in every day and bending the rules. Every passing day is marking a new development in the field of technology, and it seems like technologies will never cease to expand, at least not for now. Embracing new technologies is the only option left that can propel insurance businesses in adapting to the current situation.