Innovative Technology Trends in Insurance
There is a definite need for innovation in insurance to meet customer expectations of speed, transparency and cost savings. Some of the innovations we are seeing digitally transform the industry are :
1. Blockchain
This is a technology that is based on the shared ledger concept. Copies of the shared ledger are stored across locations of multiple users providing insurance companies, agents, brokers or underwriters with updated data from the same source. You could have reliable medical records shared between hospitals and insurers across geographies.
By adopting blockchain technology, insurers can spot fraudulent patterns and build better customer profiles eliminating duplicate records. Combining blockchain with AI and machine learning can enable automation of the claims process and expedite payouts of insurance claims.
Accenture is helping insurers to respond to the opportunities presented by DLT (distributed ledger technology). Some blockchain startups offering insurance solutions on a blockchain platform are Black, B3i , Lemonade.
2. Chatbots
There is no doubt that chatbots are the preferred communication tool for customers and agents in the insurance sector.
Conversational AI in the form of chatbots combines Automatic Speech Recognition (ASR) and Natural Language Processing (NLP) to read between the lines and figure out what the user is saying. Bots can help customers select policies based on their risk profiles and coverage requirements, even assist in cross selling additional insurance coverage.
Technology company ServisBOT provides AI-powered chatbots for insurance companies. Progressive offers a chatbot called Flo built by Microsoft Azure while Zara is the chatbot co-developed by Plexal member Spixii for Zurich UK Insurance. Simplesolve’s Tara is customized to the requirements of insurance companies and their products.
3. Internet of Things (IoT)
The Internet of Things or IoT, refers to the billions of physical devices around the world that are now connected to the internet, all collecting and sharing data. With IoT technology, a customer can upload images of their damaged property immediately; agents can review the data in real time and process the claim in minutes. With interconnected devices, all departments can access data simultaneously, adjust premiums, and onboard new clients in minutes. Having such a wealth of data facilitates detection of frauds as well as better customer service.
Tech companies like Damco provide IoT-enabled technologies and leverage data to make data-driven decisions. Microsoft’s Azure platform offers a robust solution to insurers to add sensors and smart devices, control, monitor and manage devices, analyze data and act on insights.
4. Big data and machine learning
Big data and machine learning are actually reshaping the insurance industry. This industry has a treasure trove of data. Machine learning can use this data to provide useful insights and help insurers to operate more efficiently.
With machine learning, insurers can use big data to analyse and get more granular and accurate understanding of customer behavior and their needs. This helps them to offer personalized products and solutions customized to cater to specific segments and also helps to zero in on cross selling and up selling opportunities.
Machine learning algorithms can also help in better risk management and easily detect fraud patterns by identifying exceptions alerting insurance companies regarding suspicious claims.
Many large insurers use SAS advanced, cloud-native analytics for marketing, customer service, pricing, underwriting, claims and fraud management, as well as compliance and financial management. IBM offers insurance analytics to deepen customer insights, streamline operations and prevent insurance claims fraud. Insurtech companies like Simplesolve can be consulted on how data, analytics and AI would benefit your company.
