We live in an era of digital technology. It is no surprise to see so many industries affected by various technological advancements. The insurance industry is no exception. Different countries have different insurance systems, but everyone can agree that a lot of recent developments have made things better.
At the end of the day, insurance is a business in some regard, so people who work in the industry are looking to make the most out of what is available to them. Keeping up with the trends should be one of the priorities.
Failing to adapt to changes could be your downfall. There is plenty of competition, and new insurance companies are bound to appear in the near future as well. Here are some trends that you need to watch out for and adapt. Otherwise, it might be game over for your insurance company.
Trend #1 – New Digital Agencies
Given the popularity of insurance services, it is no surprise to see IT agencies offering insurance software solutions. Of course, every software has different features. But getting one is still worth it, especially if you have been struggling with some processes recently, or lack employees who can manage stuff.
Quote and risk management, improvements to customer experience, automated invoices, claims, and billing, as well as mobile applications, are just some of the perks you can expect to benefit from. Things may seem a bit complicated at first, but if you start cooperating with a reliable agency that offers so many great software solutions, you will not want to go back to the way things were before.
Trend #2 – Artificial Intelligence
It is no secret that artificial intelligence is having a big impact on a lot of industries. Insurance is no exception in this. Some people have expressed their concerns, but AI seems to offer more help than pose threats. Some examples of AI in the insurance industry could be:
- Personalized customer experience. People want offers that coincide with their needs. So something like an AI-based chatbot will be able to provide such needs because of all the data at its disposal. On top of that, a chatbot will respond immediately.
- Facial recognition. The insurance industry was one of the few to jump on the facial recognition technology and started to use it almost immediately. It is easier to improve the underwriting process because you can scan the faces of potential clients to predict life-threatening habits and how long the person will live. And this is an important element if you want to calculate a plan that works for both parties.
Trend #3 – Robotic Process Automation
Automating all those monotonous tasks thanks to robotic processes is certainly helpful with the overall efficiency. The workload some employees have to go through every day can be incredibly large.
Imagine someone having to manage all the data that needs to be processed in a day. Yes, there is software for that, but a lot of manual work is still involved. The insurance industry is one of those that could really benefit more from automation. Simplifying multiple processes would leave more time for other, more important matters. Not to mention how much of a drag it is for some people to do the same thing over and over throughout the day. Their morale and motivation can become pretty low.
Trend #4 – Virtual Reality
Virtual reality is similar to artificial intelligence, as it makes an impact on a lot of different industries. Superior customer experience is where you can excel if you were to invest in AI. For instance, customers could get an education on insurance via interactive and engaging videos. At the same time, it is a great marketing technique because people would get to experience real-life situations that emphasize how valuable one’s life is and how certain coverage plans help you feel more secure.
Trend #5 – Machine Learning
Machine learning also has its fair share of advantages. Companies will have fewer issues dealing with fraud claims and other malicious activities. Predicting the right price for services could also be the difference-maker between selling your insurance packages and ending up empty-handed.
Trend #6 – Analysis of Big Data
Taking blind guesses will not get you anywhere. You need to gather all the information that you can and make the most out of it. Predictive analytics will help you process the data and make forecasts.
Previously mentioned machine learning technology could be the key to developing a system that provides you with live reports and offers valuable insights. If you are planning to work in the insurance industry for a long time, you will need to emphasize data generation and processing.
To sum it all up, the insurance industry has its trends that are shaping up the future. Trends mentioned in this article are valuable and are bound to become the norm eventually. And companies that failed to adopt these trends are bound to suffer, especially in the long run.