Technology and Its Impact on The Insurance Industry
Technology is changing the shape of the world we live in and how we interact. It filters through to every aspect of our lives. This is triggering a big impact on the insurance sector, insurers need to be proving that they offer more than just the traditional product and service portfolio in this digital and technological time and quickly shake off the misconception they are behind the times.
Internally, technology is affecting how insurers process and gather information. With the rise and progress of artificial intelligence and automation, the insurer will be able to gather vital information about their customers they would not otherwise of had, in previous years. Used wisely this data enables the insurer to provide a service which is customisable and up to date with the modern lifestyles of its customers.
The application of artificial intelligence and utilising blockchain could see intuitive software development which would be able to support the reporting of claim, audit system data and communicate with the customer directly at the touch of a button, doing away with the outdated paper-based process.
These technological advances in collecting data are also is making it possible to capture data through multiple channels which enable a more tailored and personal approach to insurance. Businesses will be able to create fairer and more transparent pricing models in the future, without making generic assumptions.
To continue progressing insurance companies, need to look at expanding their offerings. A trend seen to tackle this problem is by partnering or collaborating with InsurTech companies, to offer solutions-based services that are connected to new technologies. With fast-growing demand from customers for innovative products and services that deliver in a fraction of the time, collaboration with the mainstream insurer and new technologically focus companies is an essential step which needs to be considered.
Technology is changing the insurers’ product offering in other ways too, smartphones, for example, have created a new means of distributing insurance products and lodging claims. The importance of digital data and assets has created opportunities for new insurance products, such as cyber-insurance. The vast amounts of data generated and collected each day create opportunities for better underwriting and personalised products.
Technology brings with it a new perspective, and we could see it changing the face of liability, no longer are we reliant on human error alone. If we look at car insurance, for example, the advent of driverless cars could see a shift in assumed responsibility for accident or damage rather than the individuals involved in a collision responsibility may be laid on the manufacturer. Technology is enabling change; new business models will manifest and in the process upend the old ones.
Technology is not only changing the shape of how insurance is viewed but also what people want to insure. For the customer, technology is giving them greater power to demand more intuitive services. Insurers need to face this challenge by exploring new ways of meeting the demands of their customers.