Technology has changed the field of insurance in a big way! The best part about this change is that it is an ongoing one. Many technological innovations have even changed the way insurance companies used to function.
In this article, you’ll learn about the future of insurance technology. So, let’s begin!
The current landscape of insurance technology
There was a time when an insurance process involved a lot of paperwork and long phone calls. Those days have long on as technology has evolved substantially. Nowadays, filing a claim can be done with just a few clicks on your smartphone.
Insurance companies are also using technology to understand the customers and provide customized services. For example, let’s say a person has had water damage in their home. They use their smartphone and upload pics of the damage to file for their water damage claim insurance. Judging from the information provided, the insurance company approves their water damage claim and provides personalized services. So, it’s a win-win situation for both the company as the customer is satisfied and the client as they get an appropriate insurance claim for water damage.
A trend that’s finding a lot of prominence in the sphere of the insurance industry is insurtech startups. These companies are using technology to transform the insurance industry and provide solutions to clients.
What are the emerging trends in insurance tech?
The emerging trends in insurance tech are as follows:-
- Data analytics:
A trend that’s finding a lot of takers in the insurance tech field is data analytics. With such huge amounts of data available, the insurers are using data analytics to get insights into consumer behaviour and personalizing their services accordingly. Every type of data is being used by future-focused insurance companies.
- AI era:
Artificial intelligence has also entered the field of insurance and has revolutionized it. For example, many insurance companies have incorporated AI chatbots into their websites to help clients with the most common questions. With the help of AI, insurers have streamlined their process, and it has become more efficient.
- Blockchain integration:
Blockchain is not just used in the cryptocurrency industry but in the insurance industry as well. This technology is mainly used to create and manage insurance contracts. The security and transparency of blockchain can streamline the whole insurance process along with reducing costs.
- IoT:
IoT is a term used for smart gadgets and sensors installed in homes and offices. These include smart thermostats and connected cars. If a person has installed these futuristic things in their home, they might get a discount on the home insurance.
The challenges to the adoption of tech in the insurance field
Here are the challenges to the adoption of tech in the insurance field are as follows:-
- Legacy systems
Most insurance companies have legacy systems and they don’t want to use the newest tech available in the market. These outdated software have become such a big part of the day-to-day work of these companies and replacing them can be a big issue for them.
- Client resistance
When a regular client of an insurance company approaches them, the last thing they want is change! A lot of these clients are resistant to using new technologies and want to stick to how things were.
- Cybersecurity issues
With the adoption of new technology, cybersecurity issues often crop up. Insurance companies have a lot of sensitive data of many people, so the risk of cybersecurity threats is always a big challenge. However, the companies must ensure that their clients’ data always remains protected.
- Cost constraints
Technology is expensive and the customized technological softwares are even more pricey! The insurance companies that have smaller working capital can’t afford the huge fees of such software.
- Integration challenges
Integrating the technology into your existing workflow can be a pretty big challenge. The compatibility and data migration issues can deter insurance companies from opting for such software.
Final Thoughts
The future of the insurance field looks promising with all the innovative technology and cutting-edge software coming. This technology will streamline the insurance processes and make them efficient for everyone. However, there are some challenges which need to be addressed promptly. Once they are overcome, the domain of insurance will enter into a new age.
