The insurance sector has been stuck in its ways for many years, somewhat resistant to change and new technologies. But there is a shift as more insurance companies are looking at how technology can help them save money, be more accurate, and serve customers better. A range of innovations such as AI, analytics and big data, IoT, blockchain, automation, self-service, telematics, the cloud, and wearables are all making waves, but in this article, we will hone in on just three.
Big data
The acquisition and processing of vast amounts of data are essential in the process of underwriting, evaluating claims, and assisting customers. A number of companies are now using big data and analytics to help them offer better options to their client while streamlining the process. One example is the insurance company Honeycomb Insurance, which has a team of tech, big data, insurance, and AI experts behind it, providing tech-driven insurance solutions for homeowners. This kind of concept does away with the need for old-style insurers, which take days to come up with quotes. By using big data, vast amounts of information on clients, society, risks, and more can be used to create stronger and more accurate insurance insights.
Whereas previously, it would have to be reviewed manually, now it can be processed far quicker by using various forms of technology. This is a huge leap forward for the insurance sector, and more stakeholders are expected to start using it in the future.
Blockchain
Blockchain technology, particularly smart contracts, can be used in various ways in the insurance sector, according to a Forbes report. These contracts are self-executing, moving on to the next step after satisfying pre-determined and programmed tasks. For example, a smart contract could be used in onboarding a new customer, taking the application form, sending it for assessment, uploading medical history, making payments, and getting final sign-offs.
Similarly, it could also be used when processing claims, including filing a claim, receipt, assessment, compiling other supporting documents, and getting authorization to release funds. Blockchain is immutable, and registered entries cannot be tampered with, deleted, or amended in any way. This can help iron out issues in various insurance processes, making it more efficient and reducing costs.
IoT
The Internet of Things (IoT) is a network of connected devices linked to one person or family, for example like Samsung connected living. For example, it could include phones, laptops, intelligent assistants, home security, lighting and heating, smart fridge or appliances, cars, smartwatches, and more. The information these devices have can significantly impact insurance policies, either lowering or increasing the premium.
For example, daily news from a smartwatch can give real individuation of health. At the same time, data from a car, such as speeding and even location, can let insurers properly assess risk. In short, IT is set to have a massive impact on insurance companies allowing them to tailor more accurate rates, mitigate risks, and work to prevent losses in the first place while providing better service for clients. All in all, it is a no-brainer that it is set to be adopted widely soon.
