Top Technology Trends in the Insurance Domain : Technology is developing rapidly and many insurance organizations are being challenged to keep up. The top priority of insurers today is profitable & sustainable growth and to enable this, leading insurance carriers are taking all possible steps to implement innovative practices & latest technologies to improve business processes and streamline legacy applications.
“Digital Natives” are and will continue to dominate the workplace, which has major implications for agents and brokers looking to engage with customers and grow their business. As millennials mature and enter their peak, purchasing power, digital and more automated ways of doing business will become a fundamental part of everyday workflows.
From the rise of mobile users and cloud-based technologies to social media interactions, a 2016 Deloitte study on technology trends for insurance agents explains that insurance agents are finally realizing the need to be more agile, efficient, and accessible to serve today’s customers.
In addition, there is a challenging regulatory environment that continues to add more regulations to streamline the insurance sector. A recent Deloitte report outlines that the regulation is no longer one between state and federal entities, but a mix of US and state government regulation of insurance entities to ensure efficiency and compliance with standard state and federal procedures.
As a result, insurance agents not only feel pressured to digitize their workflows, but also have to streamline business processes to conduct business more cost-effectively and in compliance with these regulations.
While 63% of insurance businesses report that they are ready to shift to more digital practices, only 23% of these businesses are ready, reports a joint Forrester and Accenture study.
To accelerate this process and ensure a successful transition to digital workflows, there are several key trends that insurers should and should embrace.
Modernization of legacy systems for operational efficiency – With operations spread across multiple regions, for decades, insurance companies have been hampered by legacy systems, outdated technology that results in high maintenance costs. The proliferation of modern technologies such as mobile and cloud computing has changed the way organizations do business. Rather than being left behind, it is time for insurance companies to embrace the latest technology, and modernize their legacy platforms for operational efficiency while considering consumer flexibility.
Embrace cloud-based and on-premises infrastructure – IT teams in the insurance sector struggle with what information regulators allow to store in the cloud vs. in place. Many insurers are running 40-year-old administrative technology designed to manage the claims process, a recent TrustMarque report said, stifling innovation. Also, insurance agents are far from replacing mainframe technology instantly.
As the insurance sector adopts more streamlined workflows, we can expect a significant increase in the use of technologies that can be interoperated via hybrid and on-premise clouds, ensuring the highest flexibility for customers and clients and strong compliance with ever-changing government regulations. in the insurance environment.
Artificial Intelligence – Artificial Intelligence (AI) helps insurance companies develop systems that can perform tasks that previously required human intelligence and manual processing. With the advent of AI in the insurance industry, insurance agents can now rely on advanced systems for precision, efficiency and flawless automation of customer-facing processes, underwriting and existing claims. In the coming days, Artificial Intelligence will be more disruptive and will be used to identify and assess emerging risks.
Blockchain – The insurance sector is also focusing on Blockchain technology to empower the future. Through distributed ledgers, smart contracts, and non-repudiation capabilities, it can act as a shared infrastructure that can transform multiple processes across the insurance value chain. Not only will this simplify paperwork and improve auditability, it will help the insurance industry cut costs significantly.
This will also reduce cases of fraud related to valuables. Several major life insurance players have taken steps to experiment with blockchain-based solutions across the value chain. John Hancock, for example, is evaluating a proof of concept for employee rewards.
Predictive Analytics with Machine Learning (ML) – Using predictive analytics with ML, insurance companies can unleash the power of intelligence, to process complex data source variables into relevant data for actionable insights. This will help them predict what could happen next and what the best decision should be. As far as the insurance industry is concerned, predictive consulting is offered to customers to facilitate 24-hour customer service.
Heavy reliance on IoT and Big Data – The insurance sector is a data-driven industry that generates countless amounts of data – both structured and unstructured. As such, insurance companies rely on the Internet of Things to collect more data regarding their customers’ behavior.
Big data analysis helps insurance companies make important decisions based on analysis of accumulated data. For example, the accumulation of data from wearable medical devices allows insurance companies to monitor customer activity to offer discounts on customer health activities.
Go mobile to offer on-the-go services – With the increasing use of smartphones in both developed and developing countries, the insurance industry continues to implement mobility as part of their business strategy. Through the mobile application, customers can easily request a policy quote, find an insurance agent, calculate premium or pension income, and save policy data.
Insurers cannot ignore the benefits that mobile apps offer in brand building. With the increasing consumption of the internet through mobile phones, customers can interact through social networks and various other modes of communication.
Offering innovative and personalized services via digital touchpoints – Customers in the insurance industry are driven by a wide variety of policies and premiums, and attrition rates are high because they have many options to choose from. To retain their customers and build deep customer relationships, insurance companies invest in customer engagement activities using various digital touchpoints such as web, mobile, social media, email, etc.
For example, insurance companies help customers develop and protect their assets such as homes, vehicles, wealth, and health, usually by partnering with other service providers. This digital service is provided through the preparation of a digital strategy.
Automate regulatory compliance requirements – As Insurance is a highly regulated industry, insurance operators must incorporate regulatory compliance into their business processes. In addition, they need to quickly keep their processes in line with new regulations as and when they are promulgated.
Automating regulatory compliance helps insurance operators with immediate access to information while ensuring that processes are followed consistently, minimizing the risk of non-compliance. Automation also provides the information needed for reports and documentation about certain tasks being performed. Modern systems make regulatory automation easy while enabling changes in regulatory compliance, on top of the old system.
These are some of the trends that can be a catalyst for insurance companies to work more efficiently and reach more customers.
It always makes more sense to spend a penny than a dollar, which means – concentrate more on pleasing and getting more customers and leave your IT issues to a managed service provider, who understands your business and customers and has sufficient exposure to the domain specifically . Feel the same way? Let us know as we are one of the leading IT services company, dedicated to the insurance sector.